October 24, 2020

Market and Financial News Aggregator

Megawide-led group bags Malolos-Clark railway project contract

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MEGAWIDE Construction Corp. and its Korean partners Hyundai Engineering & Construction Co., Ltd. and Dong-ah Geological Engineering Company Ltd. have bagged the Malolos-Clark Railway Project package 1 contract, which covers the construction of a 17-kilometer viaduct structure and elevated station buildings in Calumpit, Bulacan and Apalit, Pampanga.

“The Notification of Award was issued on 18 September 2020,” Megawide said in a disclosure to the stock exchange on Monday.

Megawide said the project has an estimated cost of P28 billion, or equivalent to more than half of its current order book of P48 billion.

The company expects the project to boost its construction segment revenue in the “next three to four years.”

It said further that the project will benefit the company’s business units and support its expansion plans in the area.

The flagship Malolos-Clark railway project is part of the 163-kilometer North South Commuter Railway  project.

“Not only will this project, once totally completed, spur growth in Central Luzon, it will also increase connectivity and unlock exciting commercial opportunities between Metro Manila and Clark. This is also a strong testament to how public and private sector cooperation — foreign and local alike — can effectively propel the country towards a First-World Philippines,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

Megawide noted the project is critical in jumpstarting the Philippine economy.

“Infrastructure spending is believed to have a very high multiplier effect on the economy, and the government’s direction to push this segment is very much welcome,” it added.

The listed company previously said it suffered its first loss in the first semester, shedding P349 million, as its construction and airport businesses posted lower profits due to the coronavirus pandemic.

It reported a 21% slump in its total revenues to P6.44 billion, while overall earnings before interest, taxes, depreciation, and amortization stood at P1.45 billion. — Arjay L. Balinbin



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