GMR Infrastructure Ltd, an arm of GMR Group, on Tuesday said that the Supreme Court of Philippines has upheld the decision of the Department of Transportation and Communications’ (DoTC) to award the Mectan-Cebu International Airport project to the GMR Infra (GMR) and Megawide Construction Corporation consortium.
In a filing to the Bombay Stock Exchange, the company said, “Philippines SC upholds award of Cebu Airport modernization project to GMR-Megawide consortium.”
“Citing lack of merit, the decision endorsed by Chief Justice of Philippines, has denied the April 2014 petition by Senator to stop the awarding of the contract. It also denied the separate petition by the Business for Progress Movement for lack of legal and factual bases,” the company said in a filing.
The Philippines apex Court's decision, which was announced by the Supreme Court Public Information Office, clears any overhang that existed on GMR led consortium and paves the way for expeditious implementation of the modernisation and expansion project for Cebu airport, the company added.
Commenting on the decision, GMR Infrastructure, spokesperson said, “We welcome the Supreme Court judgment. It clears any confusion or misconception about the process of airport modernization. This decision reinforces our position as a credible and financially strong airport operator. The decision will also boost the confidence of foreign investors in the PPP program of the government of Philippines and comes at an opportune time when the 5 regional airports are being bid out, in which GMR is also participating.”
The order also provides a boost to the GMR-Megawide consortium which is in the race to bid for 5 regional airports in Philippines.
GMR Infra led consortium won the contract to expand and modernize Mactan-Cebu airport on BOT basis for 25 years.
Meanwhile, shares of the company closed at Rs 12.72 apiece, down 1.85 per cent, from previous close on BSE.