THE government is giving top priority to the “more advanced” unsolicited proposals for the development of the Bulacan Airport—submitted by San Miguel Corp. (SMC)—and the rehabilitation of the Ninoy Aquino International Airport (Naia)—offered by Naia Consortium—over the development of Sangley Airport.
Nonetheless, Department of Transportation (DOTr) Undersecretary Ruben S. Reinoso Jr. said the proposal of the provincial government of Cavite for the development of the former American air base for commercial use is “still on the table.”
“We wanted to move forward with the very advance proposal for Bulacan and then, of course, the more advanced—the expansion and rehabilitation of Naia,” he said in an interview.
He said the provincial government of Cavite may still submit the answers for the clarifications sought by the transport agency on the legal and financial framework for the implementation of the Sangley proposal.
The Cavite government proposes to develop Sangley Airport to have a total capacity of 130 million passengers per year and four runways through 2028. The P552.02-billion unsolicited offer, likewise, has a provision for the construction of mass-transit systems and new roads.
Although the transportation department is still not convinced of the Cavite government’s financial and technical capability to construct and operate an international airport, it is giving the proponent the time and chance to clarify its position in handling the multibillion-peso initiative.
“We have not been informed what legal framework they will use to develop Sangley. They can opt to adopt several frameworks such as the local government code, BOT law, but up to now, we have not yet been advised,” he said, referring to the build-operate-transfer law.
Hence, the government has decided to put to the top of its priority list the unsolicited proposals for the development of an air hub in Bulacan and the rehabilitation of the existing main international gateway.
Under its proposal, San Miguel wants to spend P735 billion to develop the Bulacan International Airport, envisioned as a 2,500-hectare airport complex that will have a total capacity of 100 million passengers annually. It also has a provision for the construction of an 8.4-kilometer airport toll road.
The proposal also includes the construction of a sea port, an industrial zone and expressways. SMC’s proposed concession period is 50 years.
The group has received the partial approval of the National Economic and Development Authority, but was flagged by the Department of Finance and the Neda for having broad provisions.
The transport department has since received the amended proposal—provisions on adverse government action and determination of payment which have been revised—and is now reviewing the new offer. It will be evaluated further by the Neda Investment Coordination Committee.
The proposal of the Naia Consortium—composed Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp. — is now nearing its required Swiss challenge.
It recently received the original proponent status from the government, a standing that gives the group the right to submit a counteroffer from any group interested in the same project.
Under the proposal, the group aims to transform the Naia into a regional airport hub that will have the capacity and capability to handle and meet “the anticipated growth in passenger traffic from the strong economies of the Philippines and the region.”
It initially submitted a P350-billion proposal that involved the augmentation of the Naia’s capacity from 35 million passengers per annum to 47 million passengers per year for the first phase. The second phase, under the initial proposal, will bring the total capacity of the Naia to 65 million passengers annually by 2022.
The first proposal also carried a 35-year concession period.
After a period of negotiations, the government and the proponent agreed to lower down the concession period to 15 years.
Reinoso noted the Swiss challenge for the two proposals—should they pass muster—will be “completed within the year.”