SAN Miguel Corp. (SMC) may break ground for the most ambitious airport project of the Philippines to date, even as the Department of Finance (DOF) sought for clarification on certain provisions of the contract.
Transportation (DOTr) Secretary Arthur P. Tugade said the food-to-infrastructure firm’s contract for the construction of the Bulacan International Airport has already been signed, hence, this allows the group to start construction works for the project.
“In our opinion, we don’t have any problem in starting the groundbreaking. There are observations like joint and solidary guarantee,” he said.
Transportation Undersecretary Ruben Reinoso Jr. explained that this clarification refers to the need for SMC to be “severally liable to the proponent” San Miguel Holdings Corp. (SMHC), which, in itself, cannot finance the undertaking based on its balance sheet.
“Somebody has to step in to provide the necessary equity, and this is the parent company,” Reinoso explained.
He noted that his group does not see any serious problem in the clarifications being sought.
“As a matter of fact, we have already prepared the explanations. Once finished, explained well, and approved, we can start the groundbreaking,” Reinoso said.
He emphasized that the signed contract is above board, adding that it was reviewed by the Office of the Solicitor General and was said to be “compliant with the law.”
“We are hoping that in the next few days and weeks, we can hold the groundbreaking,” he said.
Tugade noted that his group respects that SMC bigwig Ramon S. Ang has to attend to some “personal matters.”
“I’m believing that in due time, we will hold the groundbreaking ceremonies,” he said.
The groundbreaking for the Bulacan airport was initially scheduled for December, but the DOF clarification pushed this back indefinitely.
The Bulacan airport proposal was two administrations in the making. SMC Group received the notice to proceed for the $15-billion Bulacan International Airport unsolicited proposal on September 18, 2019.
To be built on a 2,400-hectare property in Bulakan, Bulacan, just north of Metro Manila, the airport will have four runways, eight taxiways and three passenger terminals. It also has provisions for future expansion to sport six runways and to accommodate 200 million passengers per year.
It will help raise tourism levels to 30 million annually, generate over a million direct and indirect jobs, and will contribute roughly P900 billion annually to the Philippine GDP by 2025.