San Miguel Wants to Build New Manila Airport

San Miguel Corporation, part owner of Philippine Airlines, has revealed that they are planning to present a proposal to the Philippine government to construct a new $10 billion airport for the capital region. 

Image Source: Philippine Star

Ramon Ang, President of San Miguel Corporation, confirmed that the company is going to present its proposal for an alternative international airport in Manila next month. Last year, San Miguel Corporation announced its intentions to build a new international gateway to replace the ageing Ninoy Aquino International Airport. However, the plans were shelved while the national government was deliberating on state policy regarding airports operated by airline companies. 

According to Joseph Abaya, Transportation Secretary, unsolicited infrastructure project proposals including the one being planned by San Miguel Corporation are subject to government scrutiny and must be presented to President Aquino. However, Abaya also said in earlier reports that the government was trying to avoid unsolicited proposals. Last year, All-Asia Resources and Reclamation Corporation proposed the redevelopment of Sangley Point as a major international airport and seaport.

Abaya added that upon the approval of the President, any proposal would then be subjected to a Swiss challenge where other bidders will have an opportunity to compete for the project. The original proponent will also be able to match the best proposal. The Japan International Cooperation Agency is presently considering the conversion of a former American naval base at Sangley Point into an alternative international airport. Being just 20 minutes away from Manila, Abaya believes that the location is ideal.

The Japan International Cooperation Agency has proposed $51 billion in transportation infrastructure projects to the Philippine government. In addition to airports, the plan also includes investing in subway and rail infrastructure. "NAIA is already getting saturated and there is no more time," said Shizuo Iwata, JICA Project Manager. The $9 billion airport project component of the JICA "Dream Plan" is currently awaiting the approval of an inter-agency committee chaired by President Aquino.

San Miguel plans to build an airport with four runways at an undisclosed 800 hectare property within the metropolis under a build-operate-transfer scheme. The new airport will permit simultaneous take offs and landings. The ownership of the new airport facility would be turned over to the government after 25 years. The proposed new airport would rest on double the surface area that is presently occupied by the existing Ninoy Aquino International Airport, which occupies a 400 hectare lot. With limited runways, NAIA has already exceeded its maximum annual capacity of 30 million passengers per year. 

The San Miguel airport project is expected to support the expansion of Philippine Airlines. San Miguel will infuse $10 billion over a five-year period which exceeds the project estimate being prepared by the Japan International Cooperation Agency by $1 billion. The planned investment also represents an additional increase from the targeted project amount San Miguel revealed in 2012 of $6 billion. A Nikkei report suggested that San Miguel may invite partners for the project. 

The Philippines is currently planning new airports and upgrades to existing infrastructure to help meet its tourism target of 10 million international tourists and 56 million domestic tourists by 2016.