SPIA Development Consortium gets OPS for Sangley

MANILA, Philippines — A powerhouse consortium of local and foreign companies has secured the original proponent status (OPS) for its unsolicited proposal to develop the Sangley Point International Airport (SPIA) project.

The $10.9-billion unsolicited proposal submitted in November last year by the so-called SPIA Development Consortium has been formally accepted by the provincial government of Cavite, with Cavite Gov. Jonvic Remulla issuing the certificate of acceptance to the consortium last Jan. 7.

The grant of the OPS gives the consortium the right to directly negotiate the final terms and conditions of the joint venture with the province.

The consortium also has the right to match the best counter proposal that may be received during the 60-day mandatory competitive or Swiss challenge process.

“The acceptance of the unsolicited proposal is a clear sign of the province’s commitment to deliver this nationally significant and legacy project to the Filipino people. We are very glad and hopeful that this consortium made up of reputable domestic and well-known global development and investment companies will help us successfully complete the project,” Remulla said.

The SPIA Development Consortium is composed of domestic and foreign companies with successful track records in developing, investing, and managing large scale, high-value infrastructure projects, including international airports.

Its key local members are the Yuchengco Group of Companies, Cavitex Holdings Inc. chaired by businessman Luis Virata, and Lucio Tan’s MacroAsia Corp., which will provide management and technical services for the aviation support and logistics component of the project.

Joining the local firms in the consortium are renowned global companies Samsung C&T Corp. of South Korea, Munich Airport International GmbH, and the London-based design and engineering firm Arup Group.

The consortium said that as soon as the project is awarded, they are ready to transform Sangley airport into a premium gateway that can provide an alternative to the congested Ninoy Aquino International Airport (NAIA).

It said the SPIA project is urgently needed as a complementary airport to NAIA given post-pandemic requirements, and help accelerate government initiatives for the country’s economic recovery.

After final planning, design and financial closing, the consortium said work would immediately commence with the construction of a 4.6-kilometer connector road from the Kawit Interchange of Cavitex that would lead to Sangley, with the time of completion estimated at two years.

Under the proposal, the consortium intends to develop the SPIA in three phases, with Phase 1A to cost $2.3 billion, Phase 1B for $2 billion, and Phase 2 for $6.6 billion.

Cavite’s second attempt to bid out the project failed in October last year, with no parties submitting a bid.

MacroAsia and state-owned China Communications Construction Co. Ltd. won the first bidding for the SPIA project in 2019, submitting the sole bid.

However, the airport deal awarded to the tandem was terminated in January last year due to the various deficiencies of the submission of requirements to conclude the joint venture agreement, prompting the provincial government of Cavite to start anew with its search for a partner.