NEDA Board clears Bulacan airport project sans guarantee

MANILA, Philippines — The National Economic and Development Authority (NEDA) Board approved Friday the concession agreement for San Miguel Holdings Corp.’s (SMHC) proposed Bulacan international airport and the operations and maintenance of the Clark Intnernational Airport.

“The NEDA Board just approved two contracts for the airports where there is absolutely no guarantee. We’re going to get the contract for Clark and the contract for Bulacan airport with no government liability at all,” Finance Secretary Carlos Dominguez said.

Dominguez said these are different from the government’s contract for the Mactan-Cebu International Airport, in which the government committed a termination payment of P20 billion in case it opens another airport in Cebu.

With the NEDA Board’s approval, the government may now proceed with the Swiss Challenge for the Bulacan airport contract.

The Bulacan airport project involves the construction of a world-class, major international gateway with four to six parallel runways, modern terminals, a sea port, an industrial zone, and other necessary infrastructure.

 It is part of the Department of Transportation’s multi-airport strategy to decongest the Ninoy Aquino International Airport .

Dominguez  earlier raised concerns over SMHC’s  capacity to fund the P735.63 billion Bulacan airport project.

The finance chief asked San Miguel Corp., the parent company of SMHC, to back the project by signing a joint liability agreement, to which San Miguel president and chief operating officer Ramon Ang agreed to.

Budget Secretary Benjamin Diokno earlier said the government would make no commitment to transfer some flights from NAIA and Clark International Airport to the proposed Bulacan gateway.

Diokno also asked SMHC to ensure the competitiveness of the Bulacan airport to encourage airlines to operate there.

Meanwhile, the Clark International Airport expansion project seeks to construct a new passenger terminal building to accommodate eight million passengers annually. It is targeted for completion in the middle of 2020.

The North Luzon Airport consortium, comprised of JG Summit Holdings Inc., Filinvest Development Corp., Philippine Airport Group Support Solutions Inc. and Changi Airports Philippines Pte. Ltd.,  bagged the O&M airport contract.