Construction of new int’l airport in Bulacan to start in December after deal inked with SMC

Transportation Secretary Arthur Tugade and SMC President and Chief Operating Officer Ramon Ang signed the concession agreement on the construction of the Bulacan Int’l Airport on Wednesday, Sept. 18, 2019, with the construction of the airport set to begin this December 2019. (Photo courtesy DOTr and San Miguel Corporation.)

 

(Eagle News) – A modern international airport will soon rise in Bulacan.

This was after Transportation Secretary Arthur Tugade signed the concession agreement with San Miguel Corporation (SMC) on Wednesday officially awarding the ₱734-billion deal to SMC unit San Miguel Aerocity Inc.

Tugade issued the notice to proceed with the project, as he authorized SMC to build, operate, and maintain the New Manila International Airport in Bulacan,

“We may be able to do groundbreaking before the end of the year,” said San Miguel President and Chief Operating Officer Ramon Ang during a press briefing.

The construction of the ambitious project will start in December, he said, as initial engineering plans on the project had already started two years ago.

Tugade and SMC president Ang signed the agreement at the ASEAN Convention Center inside the Clark Freeport Zone in Pampanga.

The agreement gives a 50-year concession period for SMC to operate the airport without any government guarantee or subsidy. The right of way costs will also be shouldered by SMC.

The international airport will have four runways and can accommodate up to 200 million passengers per year.

It is seen to decongest the Ninoy Aquino International Airport.

Ang mahalaga po diyan ay ‘yung pasahero, ‘yung riding public. Alam niyo ‘ho kung bakit? ‘Pagkat kung meron nang Bulacan Airport, NAIA at Clark Airport, let it be a battle of commercial competitiveness. And if it becomes a battle of commercial competitiveness, who benefits? It is the riding public, because the riding public will be given a freedom of choice. Pwedeng mamili kung saang gustong paliparan. Pwedeng mamili kung saang comfort and convenience ang tutukuyin niya. Ito ‘ho ‘yung mahalaga dito,” Tugade said.

“It’s all about comfort. It’s all about convenience. It’s all about putting life to the President’s wish and desire for a comfortable life for Filipinos,” he added.

SMC said that it would be tapping foreign airport builders including those behind Singapore’s Changi Airport and France’s Charles de Gaulle Airport.

The agreement formally grants San Miguel Aerocity Inc., a company wholly owned by San Miguel Holdings Corporation (SMHC), the task of handling the financing, design, construction, operations and maintenance of the Bulacan International Airport. The concession period spans 50 years after the completion of construction of the first phase.

-SMC to shoulder right-of-way costs-

During the signing ceremony, Tugade lauded the SMC for ensuring that issues on right-of-way acquisition, “Material Adverse Government Action” (MAGA) or situations where the government deviates from contractual obligation that requires it to compensate a private entity, and subsidy are expeditiously resolved.

Napadali ang dayalogo. Napadali ang agreement sapagkat kinuha ni Ramon Ang ang responsibilidad. Sa dahilang ito, umusad tayo,” Tugade said.

For his part, Ang touted the economic boost the new airport will bring especially to Central Luzon.

“This will really benefit our people and it will create a lot of business opportunities for Filipinos. It will bring so many foreign tourists,” Ang said.

He also cited the conducive conditions for business with government under the Duterte administration.

Marami na akong experience in dealing with government officials for the past 30 years. Alam niyo, importante sa government official, ‘yung matapat na tao at masipag. Matapat, masipag, at magaling. Itong administration na ito, ganun po sila,” Ang added.

The DOTr formally issued San Miguel Holdings Corporation (SMHC) the Notice of Award on 14 August 2019, two weeks after the conclusion of the Swiss Challenge where SMHC’s unsolicited proposal went uncontested, a department statement said.

-Decongesting NAIA-

The Bulacan International Airport will not only help decongest the Ninoy Aquino International Airport (NAIA), but will also complement the operations of Clark International Airport (CRK).

This will serve the current and anticipated rapid growth in aviation traffic demand in the Greater Capital Region.

The new gateway will have four (4) parallel runways for faster turnover of aircraft, eight (8) taxiways, a Passenger Terminal Building (PTB) with a design capacity of 100 million to 200 million passengers per year, and airfield facilities and equipment.

Additionally, an eight-kilometer toll road connecting the Bulacan Airport to the North Luzon Expressway will be constructed to aid travelers to and from the airport.

The new airport is targeted for operations within four to six years.