Wednesday, October 9, 2019

CAVITE Initiates SANGLEY POINT AIRPORT Project with JOINT PROPOSAL Offer


Our readers on Morgan Magazine can recall our previous articles regarding the New Manila International Airport, alternatively the Bulacan Airport. This facility is to be developed as a new air transport hub for Metro Manila and nearby provinces of Luzon, the better to further decongest air traffic in the Ninoy Aquino International Airport (NAIA). The project awarded to San Miguel Holdings Corporation, with groundbreaking at the site in Bulacan to start by December. But it is not the only airport project percolating in Luzon, which seems to be caught in the beginning of frenzy in building them. Another airport location is being conceptualized in Cavite.

Inquirer.net reports that the local government of Cavite province is finally taking the next step in realizing its plan for an international airport complex located at Sangley Point, something it has been developing in discussion since February 2018. To that end they will soon publish a request for interested business partners to undertake a joint venture proposal with which to begin constructing the facility which has been estimated at around P10 billion. It is a modest sum compared to what San Miguel Corp. is working with in Bulacan further north.

According to a copy of the request document as shown to the Inquirer, finances for the Sangely Point Airport project is being raised by the Cavite provincial government with the interest and assistance of several investors from the People’s Republic of China, particularly “development financial institutions and policy banks” of that country. But to hedge their bets, investment overtures have also been sent to companies in Japan, South Korea and the US according to a spokesperson for the Cavite LGU. The joint venture development agreement will be in effect for a month starting from October 11 to November 11, with no guarantee, subsidy or equity provided by the national government.

The Sangley Point airport project joint venture is made possible by Cavite province’s Publi-Private Partnership Code, which forgoes the need of approval from the National Economic Development Authority (NEDA). Furthermore, the code optimally subjects all partnership proposals to a competitive challenge meaning on single prospective partner will be given undue favor over the rest. While the Department of Transportation (DOTr) has no objections, it will eventually have authority over flying rights at the airport once it is completed and operational.

While smaller in scale than the New Manila/Bulacan International Airport, the single-runway Sangley Point hub, should a partner be selected without delay, can be completed by the year 2022, while the Bulacan location is estimated to last five years construction. The deadline for joint-venture proposal submissions is on November 25.

Image courtesy of Philippine Star

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