Study on P508-B Sangley airport plan submitted

The Sangley Point International Airport, a future alternative to the busy Ninoy Aquino International Airport (Naia) in Manila, remains in the picture as the Cavite provincial government submitted the full project study to the country’s economic planners last month.
The project, said to be aligned with the “One Belt, One Road” policy of the People’s Republic of China, aims to ease air congestion in Naia, where options for expansion are constrained by its location within the capital district of Metro Manila.

It will also provide a site for future air traffic growth without limits posed by the lack of available land.
The feasibility study, dated Dec. 12, 2018 and seen by the Inquirer, was prepared by a team of international and local experts including NATS and RDC from the United Kingdom and Hong Kong’s OTC.
The submission signaled the continued interest of the Cavite government to pursue the massive airport, which would rise on about 1,500 hectares of reclaimed land around a former US naval base in Sangley Point.
Based on the study, the Sangley Airport will cost about P508.5 billion. The first phase involves the opening of one runway by 2023. It has a design capacity of 25 million passengers a year.
More runways will be built in phases, going up to four runways that could serve 130 million passengers a year by 2050. The project will have a 25-year concession period, which can be renewed for another 25 years.
The proposal, made through a novel government to government approach, was initially met with skepticism within the Department of Transportation, which sought clarity on the legal framework and its funding sources.
Based on the feasibility study, the project will be set up as a “government-sponsored international joint venture and economic cooperation initiative.”
This means Sangley Airport will be financed by what it described as a Standard Airport Trust, which will be held by the province of Cavite and Philippine government agencies as trustors while investors will include state-owned financial institutions with CLSA acting as arranger.
The document mentions the Sangley Airport as an investment model intended as a “new exploration of the ‘One Belt, One Road’ business model of state-owned financial institutions of the PRC.

“The participation of Chinese-funded institutions in the construction of the Sangley Airport will help deepen the ties between the Philippines and China, especially deepen mutual trust and maintain regional political and economic stability,” a portion of the study read.

The Cavite government submitted the more than 500-page study to the investment coordination committee of the National Economic and Development Authority (Neda) last Dec. 17, a source with knowledge of the matter said. It would still require the approval of the Neda board, chaired by President Duterte.

Source: The Inquirer. Philippines

Philippines: Mindanao airport gets private sector interest

Conglomerate Aboitiz Equity Ventures Inc. submitted an unsolicited offer to develop and operate Laguindingan Airport, which is located in Misamis Oriental and is considered a gateway to Northern Mindanao.
This was disclosed last week by Manuel Tamayo, undersecretary for aviation at the Department of Transportation (DOTr) .
Tamayo said the unsolicited proposal was submitted to the Civil Aviation Authority of the Philippines. He could not immediately provide details on the offer.
Laguindingan Airport, now considered the country’s sixth-busiest air gateway, was opened in 2013. It has a 2,100-meter runway and serves close to two million passengers annually.
The airport serves Cagayan de Oro City and nearby areas such as Iligan City, Marawi City and Bukidnon province.
This is the second provincial airport that AEV, through Aboitiz InfraCapital, has expressed interest in operating.
The company earlier won original proponent status to operate and further develop the Bohol Panglao International Airport, which was inaugurated last month.
The Cebu-based Aboitiz Group has interests that span power, banking, property development and agribusiness. It is also part of a consortium of seven conglomerates seeking to modernize and operate Manila’s Ninoy Aquino International Airport.
Among the groups that were prequalified to join the Aquino administration’s tender for regional airports, a Public-Private Partnership project, AEV shifted gears after the Duterte administration scrapped the PPP.
In May 2017, the DOTr announced its preference for government funding or foreign loans to finance the development of provincial airports. That policy direction changed anew as unsolicited offers were made.
Last October, it awarded original proponent status to businessman Dennis Uy’s Chelsea Logistics Holdings Corp., which made a P49-billion unsolicited offer for the Davao International Airport, the country’s third busiest gateway.

It also conferred an original proponent status to Mega 7 Construction Corp. for its P3.8-billion proposal for Kalibo International Airport, a gateway to Boracay Island, a popular destination for tourists.


Bidding for Clark airport O&M a landmark accomplishment for PH gov’t

The success of the bidding for the Clark International Airport operations and maintenance (O&M) contract shows the seriousness of the Duterte administration to “Build, Build, Build.”

The Bases Conversion and Development Authority (BCDA) in partnership with the Department of Transportation (DOTr) recently awarded the O&M contract to the four-member North Luzon Airport Consortium (NLAC), which includes Changi Airport Group, the operator of the number one airport in the world, Singapore Changi Airport.

The successful selection process proves that government is committed to providing our citizens with world-class, efficient and comfortable infrastructure, as envisioned under the President’s Build Build Build program.

The Clark airport expansion project was done in record time, within the first two years of President Duterte’s term—a major accomplishment considering that development plans for the airport were neglected for years. 

The BCDA Special Bids and Awards Committee for the O&M contract conducted a stringent and very transparent bidding process, which was guided by the International Finance Corporation of the World Bank (IFC-WB) as its transaction adviser, and the Public-Private Partnership Center (PPPC).

In a year-end press conference held by the PPP Center last December 20, Executive Director Ferdinand Pecson said that the bidding process for the Clark airport O&M contract was aboveboard and no group was favorably chosen over another.

The Clark International Airport is the first project being implemented using the hybrid PPP mode to fast-track infrastructure development under the Build Build Build program.

The concession agreement for the O&M contract has also been cleared by the Office of the Government Corporate Counsel and the Department of Finance (DOF), and is seen to protect not only the interest of the present government, but also future governments from undue and contingent risks and liabilities. 

Finance Secretary Carlos Dominguez said in an earlier statement that DOF had meticulously scrutinized the concession agreements for the Clark airport to ensure the government would not incur unwarranted contingent liabilities, like what happened to the Mactan-Cebu airport contract.

“If you compare the guarantees that were given to the Cebu contract comparing to what we have for the Clark and the Bulacan, you will see the big difference from before,” Dominguez said. “We’re going to get those, the contract in Clark, and the contract for the Bulacan airport with no government liability at all,” he added.

Meanwhile, citing the key features of the Bulacan airport concession agreement, Socioeconomic Planning Secretary Ernesto Pernia added that these projects “certainly raise the bar on PPP projects.”

NLAC’s financial bid offer of 18.25% annual gross revenue percentage share is almost twice the minimum rate set at 10% as approved by the NEDA Board. The bid offer, according to the PPPC, is more than 80 percent better than the minimum rate set.

The other three members of NLAC are Filinvest Development Corporation, JG Summit Holdings, Inc. and Philippine Airport Ground Support Solutions, Inc. Each consortium member has a vast experience in property development, air transportation and airport operations, especially Changi Airports Philippines Pte. Ltd., which is 100%-owned by Changi Airports International Pte. Ltd.

Singapore Changi Airport was ranked first in Skytrax’s top 100 airports for 2018, and was voted as one of the best airports in the world for six consecutive years. (BCDA).

Source: Philippines Information Agency

Incheon Int’l Airport to join San Miguel on developing new Manila airport

The Incheon International Airport Corp. (IIAC) will work together with Filipino multinational company San Miguel Corp. on developing the Philippines’ new airport near Manila.

IIAC said Sunday that it has entered into the memorandum of understanding with San Miguel Corp, the Philippines’ largest company to cooperate on developing a new international airport in Bulacan province, about 40 kilometers northwest from Manila.

San Miguel currently is waiting for the Filipino government’s final awarding of the new airport project worth about 17.5 trillion won ($15.5 billion). In April, it gained an approval on its unsolicited proposal of opening a new airport, dubbed New Manila International Airport that it submitted in 2016. Once awarded, San Miguel will be given the rights to build and operate the new Manila airport for 50 years. The company plans to set up the new airport with as many as four parallel runways to serve over 100 million passengers yearly.

The Philippines’ capital Manila already has a main air gateway Manila Ninoy Aquino International Airport but it already has reached its saturation point. Last year, a total of 42 million people traveled through the airport, exceeding its annual service capacity of 31 million.

IIAC said the New Manila International Airport will be constructed on reclaimed land just like the Incheon International Airport itself, allowing it to share its experience on constructing and operating the airport with San Miguel. It plans to work with the Filipino primarily on operating the new airport.

Source: Pulse