Conglomerates Bid for the USD 10-billion Sangley Airport Project

Nov 2019

Bid submissions for the USD 10-billion Sangley Airport project in the province of Cavite has just recently concluded on November 25, 2019. Six groups have bought joint venture documents, namely, Taipan Lucio Tan’s MacroAsia Corp., state-run China Communications Construction Co. Ltd., billionaire Manuel Villar Jr.’s Prime Asset Ventures Inc., Philippine Airport Ground Support Solutions Inc. (the Jefferson Cheng-led ground-handling company), Langham Properties Inc., and Mosveldtt Law Offices. Manuel Pangilinan’s Metro Pacific Investments Corp. was also seriously considering the bid, however, days before the bid deadline, they did not have a final decision yet about joining.

The provincial government of Cavite has opened the submission of bids sometime in October 2019 through a joint venture (JV) partnership scheme.

Cavite is the lead proponent and implementing agency of the project which supports the Department of Transportation’s (DOTr) multi-airport strategy to decongest Ninoy Aquino International Airport (NAIA), the country’s main international gateway, whose passenger volume is already about 40 percent above its design capacity of 31 million passengers yearly.

The fully integrated Sangley Point International Airport is a key project under the government’s Build Build Build Infrastructure development agenda and enforces the Japan International Cooperation Agency dream plan which aims to increase efficiency, mobility and quality of life in Metro Manila through a modern and well-coordinated transport system. The 1,500-hectare master-planned international airport hub will feature four runways, airside and landside facilities, and can accommodate up to 130 million passengers annually. The airport is expected to be at par with Singapore’s Changi International Airport, Hong Kong International Airport, and South Korea’s Incheon International Airport, as it is positioned to be the next big thing in air transport innovation in the country.

Because the international air hub is to be pursued under the Public-Private Partnership (PPP) Code, it will no longer require the approval of the National Economic and Development Authority (NEDA) for implementation. The selected JV partner will be providing the necessary equity investment and credit enhancements, and subject to a further competitive process or price test, perform engineering, procurement and construction (EPC) services for the land and airport development components of the project. In addition to the legal, technical and financial qualifications set by the Cavite government, the selected JV partner must also pass the credit standards of the project lenders.

The target completion of the project’s first phase is slated on 2022 and will be able to accommodate 75 million passengers yearly. The second phase of development will follow with target completion on 2028.

(Sources: Inquirer.Net; Public-Private Partnership (PPP) Center)

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