San Miguel Corporation Plans to Fund New Manila International Airport

The construction of a new world-class, major international airport is set to take reality. San Miguel Corporation (SMC) appointed Standard Chartered Bank (SBC) and Sumitomo Mitsui Banking Corporation (SMBC) as their co-financial advisors.

san miguel manila airport proposal
Image Source: SMC

The National Economic Development Authority (NEDA) approved the proposed gateway in Bulacan amounting to P735.6 -billion. It will have parallel runways, modern terminals, a sea port, an industrial zone and other necessary infrastructures (expressways).

Both financial advisors have experienced experts in infrastructure and airport sector. This will help SMC as they make their way throughout the process and approvals. The main goal of SMC is to successfully deliver and close this landmark for the Philippines.




THE PROPOSAL

In January 2018, SMC has pitched to build an airport in Bulacan. The airport will run for 50 years before turning it over to the government. The project will transform 1,168 hectares of land to an aerotropolis while a city complex is to built along Manila Bay in Bulacan town. There would be six parallel runways and it can served almost 100 million passengers a year.

Ninoy Aquino International Airport (NAIA) has been a priority by the government to decongest. Annual passengers has increased to 42 million as of 2017 which is beyond the airport's operating capacity of 35 million. A recent incident involving Xiamen Air lead to airport shut down for 72 hours affecting 60,000 passengers with more than 200 flights cancelled. This is an eye opener for the government which clearly lack contingency plans should this kind of accidents arise.

Experts from the International Chamber of Commerce-Philippines also supported SMC's proposal citing that the current airport has virtually no space for additional runways and can no longer serve the growing economy and population of the Philippines. The proposal will still undergo a competitive challenge according to the Department of Transportation (DOTr). It allows interested parties to submit their own proposal to match the proposed project cost.

Watch more details here:


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Source: BusinessWorld, Entreprenuer, BusinessMirror

4 comments:

  1. I don't trust SMC to build a world class airport.

    ReplyDelete
  2. What about Clark Airport? Clark is the future. Why are people denying the development of Clark? Despite it being obviously WAY better then Bulacan. Yes they have a nice long term plan for Bulacan, but that's just something that looks nice on a piece of paper. Clark is there, it's right in front of your FACE PEOPLE! Just develop it..

    ReplyDelete
  3. The problem with Clark is that the demand of passengers is on the decline since it was first introduced. SMC proposal have an inherent problem with global warming within the 12-year period and the need for additional infrastructure systems. Such infrastructure supporting the new SMC outside the airport proper may cost the government unestimated billions of dollar, not to mention that the government will not earn any income from that airport for 25 years based on SMC proposal. If SMC tries to solve the low flood prone terrain an additional 5 billion dollars may be needed.

    Ed Petil, PE, GEC, AVS (info@petil-pce.com)

    ReplyDelete
  4. Additions and Correction: SMC proposal will generate additional expenses to the government on infrastructures outside the new airport right-of-way and will not be able to receive earning from the new airport for a period of at least 50 years from the start of construction. The NAIA airport, at the start of its closure, will cost the government billions of pesos before it becomes usable again.

    ReplyDelete

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