A consortium composed of local and foreign groups, including the Yuchengco Group and billionaire Lucio C. Tan, has submitted a $10.9-billion unsolicited proposal to the provincial government of Cavite for the development of the Sangley Point International Airport (SPIA).
The SPIA Development Consortium said it submitted the proposal after the government declared a second failed auction for the airport development project on October 20. The consortium members that submitted a fresh proposal are: the Yuchengco Group of Companies, MacroAsia Corp., Samsung C&T Corp., Munich Airport International GmbH, and Cavitex Holdings Inc., an entity that is not related to the Metro Pacific group.
“The proposed partnership with Cavite province will encompass the development, design, financing, construction, operation and maintenance of the Sangley airport project that is seen to provide an alternative to, and ease the congestion at, the Ninoy Aquino International Airport as well as boost economic growth and enhance the local tourism and aviation industries,” it said in a statement.
In a text message, a consortium representative said the proposal of the consortium involves the development of the SPIA in two phases.
Phase 1A involves the development of the first runway and terminal building that can handle up to 15 million passengers per annum. It has a price tag of $2.3 billion. Phase 1B, meanwhile, will expand the airport’s capacity to 25 million passengers per year through a $2-billion investment.
The second phase, meanwhile, will cost $6.6 billion. It involves the construction of a second runway and the expansion of the airport’s capacity to 75 million passengers per annum.
No further details were supplied when asked for further clarification.
“Sangley airport is envisioned to become a fully-modernized, world-class and green airport that is designed to expand as demand for air transport services increases in the next 30 to 40 years, and as operations at Naia are eventually phased out to allow for a redevelopment of the site and its surrounding areas,” the statement read.
To recall, the local government of Cavite first awarded the development project to state-owned China Communications Construction Co. Ltd. (CCCC) and MacroAsia in 2020, but was later revoked due to “various deficiencies in the submission requirements to conclude the joint venture agreement for the SPIA.”
The project was then auctioned off for a second time, but none of the four companies, Metro Pacific Investments Corp., CCCC, Philippine Airport Ground Support Solutions Inc., and Mosveldtt Law Office submitted a bid, and thus was declared a failure of bidding.
The development of Sangley Airport was nothing new. Various groups, including San Miguel Corp. and Solar Group-backed All-Asia Resources and Reclamation Corp., have submitted unsolicited proposals for the SPIA half a decade ago.
Sangley Airport has always been seen as an alternative to the aging and congested Naia.