San Miguel airport franchise lapses into law
MANILA, Philippines — The measure granting San Miguel Aerocity Inc. a 50-year franchise to construct, develop, establish, and maintain a domestic and international airport in Bulacan has lapsed into law.
The franchise, which was passed by the House of Representatives last September and amended by the Senate in October, lapsed into law last December 20, a copy of the measure transmitted to Malacañang showed.
Under the constitution, the president has 30 days to sign a measure into law or veto it. If the president does not act on it within 30 days, the bill would lapse into law.
The measure, now known as Republic Act No. 11506, grants San Miguel Aerocity, Inc. a franchise to construct, develop, establish, operate, and maintain for commercial purposes and in the public interest a domestic and international airport in barangays Taliptip and Bambang in the town of Bulakan in Bulacan. It also allows San Miguel, its successors, or assignees to construct, acquire, own, lease, operate, develop or manage the Airport City and conduct other businesses related to the airport.
Under the law, San Miguel will be exempt from any and all direct and indirect taxes and fees that emanate exclusively from the construction, development, establishment, and operation of the airport and Airport City during the 10-year construction period.
After the 10-year construction period and during the remaining year of the franchise, San Miguel, its successors, or assignees will be exempt from income taxes and taxes on real estate, buildings, and personal property levied, established, or collected, or may be levied, established or collected by any city, municipal, provincial, or national authority.
The P736-billion Bulacan airport project, which was awarded to San Miguel last August, was intended to reduce the congestion at Ninoy Aquino International Airport in Pasay City.
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