4 groups eye development of Clark Terminal 2

CLARK FREEPORT – At least four firms are eyeing the development of the P4-billion Terminal 2 project for the Diosdado Macapagal International Airport (DMIA) here, the Clark International Airport Corp. (CIAC) said yesterday.

CIAC president and chief executive officer Victor Jose Luciano identified the firms as Pacific-Avia Group Inc.; R-II Holdings Inc.; SNC Lavalin International Inc. of France; and Samil PricewaterhouseCoopers of Korea.

Luciano said the Pacific-Avia Group, SNC Lavalin International and Samil PricewaterhouseCoopers had submitted letters of intent while R-II Holdings had already submitted its unsolicited proposal for the project to CIAC.

“President Arroyo wants the new world class terminal done at DMIA by 2010 as part of its transformation into the premier gateway of the country and one of the best logistics and services hub in Asia,” Luciano said.

CIAC said Pacific-Avia Group is composed of the A.M. Oreta Construction Co.; DHL Philippines; DRI Holdings; EGIS AVIA S.A.; Pentagon Development Corp.; the Bank of Commerce; and, Castillo Laman Tan Pantaleon & San Jose.

SNC Lavalin International has over 90 years of engineering-construction project experience, executing thousands of projects worldwide. The company is among the world’s Top 10 Global Design firms as stated in the Engineering News Record, the leading reference publication for the industry.

R-II Holdings Inc., on the other hand, is an engineering company involved in the development and construction of various infrastructure projects in around the country, while Samil PricewaterhouseCoopers,- composed of Philco Aero, the Posco Engineering & Construction Co., Ltd, the Korea Development Bank, the National Agricultural Cooperative Federation, and the Global Standard Developing Co., Ltd.- has vast experience in finance and advice for investment infrastructure such as for feasibility studies and project arrangements for investments as well as sourcing funds for projects, CIAC also noted.

Luciano said the four groups expressed interest through the “unsolicited proposal option” offered by CIAC for the terminal development.

But he added that CIAC is still considering other options such as obtaining a “soft loan” under an Overseas Development Assistance (ODA).

He said a viable option is an through the Korea International Cooperation Agency (KOICA) and the Korea Eximbank for an ODA to develop Terminal 2.

Under the Korean plan, the interest rate would only be 0.1 percent with a grace period of 10 years and payable up to 40 years. The offer is seriously being studied by the Department of Transportation and Communication (DOTC), Luciano said.

CIAC Vice-President for Administration and Finance Romeo N. Dyoco Jr., who is chairman of the Joint Venture Selection Committee (JVSC) for the terminal project, said CIAC is also open to “unsolicited proposals via a joint venture or a joint venture between a private group through a second bidding, adding all these options are being studied by the JVSC”.

He said under Annex C of the JV Guidelines, the capacity of the Terminal 2 has been reduced to a minimum requirement of 3 million passengers per year instead of the previous 7 million passengers annually and will occupy 11.9 hectares of land inside 2,500-hectare Clark Civil Aviation Complex.

The minimum investment for Terminal 2 has also been reduced to P4 billion from the previous P6.5 billion which Dyoco said “is meant to attract investors for the project.”

The target completion date of the project is March 31, 2010.

Under the joint venture option, the government gets a stake and its joint venture partner.

Dyoco stressed this will be subjected to a “competitive challenge” among potential investors who will produce the best offer to build, design, finance, equip and operate the DMIA Terminal 2 before 2010.”