Manila Bulletin

Duterte okays SMC’s new airport project

SPEs for project finance given SBL leeway EU upgrades IPR category of PH in terms of protection, enforcemen­t

- By CHINO S. LEYCO

President Rodrigo R. Duterte approved late Wednesday nearly a trillion pesos worth of infrastruc­ture projects, including the San Miguel Corp.’s unsolicite­d proposal to build an internatio­nal airport in Bulacan, the Department of Finance (DOF) said.

Based on a list provided by Finance Secretary Carlos G. Dominguez III to reporters, the National Economic and Developmen­t Authority (NEDA) Board, chaired by the President, approved during its April 25 meeting about 20 big-ticket infrastruc­ture projects worth more than R974.8 billion.

The largest among the projects approved by the NEDA Board is the R735.63billion airport proposal submitted by San Miguel, a facility that once completed should help ease congestion at the Ninoy Aquino Internatio­nal Airport (NAIA).

San Miguel's proposed new internatio­nal "aerotropol­is" involves an airport covering 1,168 hectares and a city complex to be built at a 2,500-hectare area along Manila Bay in Bulacan, Bulacan.

The planned 50-year airport project will entail building six parallel runways with an initial annual capacity of 100 million passengers, or over triple the NAIA.

Dominguez, however, said that San Miguel’s unsolicite­d proposal is still “subject to final review of concession agreement.”

San Miguel's airport project will be subject to a Swiss Challenge under government rules, meaning other groups will be invited to make competing offers, with the original bidder given the right to match any better proposal.

Other infrastruc­ture projects approved by the President are the R50.03billion Subic-Clark railway project, Clark Internatio­nal Airport expansion project costing R12.55 billion along with the Ambal-Simuay river and Rio Grande de Mindanao River Flood Control Projects costing R39.22 billion

Likewise, the Pasig-Marikina river and Manggahan floodway bridges constructi­on project (R27.368 billion), and the bridge constructi­on accelerati­on project for socioecono­mic developmen­t (R27.37 billion) were also approved by the NEDA Board.

The chief executive also gave his green light for the proposed change in scope, cost and loan validity extension of the integrated disaster risk reduction and climate change adaptation measures in lowlying areas of Pampanga bay (R6.15 billion) and the rural agro-enterprise partnershi­p for inclusive developmen­t and growth project (R4.78 billion).

Dominguez said, however, said that rural agro-enterprise partnershi­p’s approval is subject to certain conditions.

“Confirmati­on subject to have a twophased approach with up to 25 percent of total project costs as pilot-testing phase and upon successful performanc­e evaluation, will expand the project to second phase of up to 75 percent of total project costs,” the finance chief said.

The NEDA Board also confirmed the approval for the Davao Food Complex project (P1.02 billion), the proposed restructur­ing for the Integrated Natural Resources and Environmen­t Management project (R7.24 billion), change

in scope and cost for Integrated Marine Environmen­t Monitoring System Phase 2 project ( R1.68 billion).

Lastly, the proposed increase in cost of the New Centennial Water SourceKali­wa Dam project (R14.32 billion) was approved by President Duterte.

Dominguez, meanwhile, said that there were eight other projects confirmed by the NEDA Board through ad referendum.

These are the proposed change in financing from local funding to Official Developmen­t Assistance of the Arterial Bypass project phase III, contract packages I, II, and IV as well as the Improving Growth Corridors in Mindanao Road Sector Project (R25.26 billion)

The planned change in design and increase in cost of the Chico River Pump Irrigation project (R4.37 billion) and the conflict-sensitive resource and asset management program – financial cooperatio­n R1.27 billion) and the Safe Philippine­s Project Phase 1 (R20.3 billion) were also approved.

The board also granted the request for Supplement­al Loan for the New Bohol Airport Constructi­on and Sustainabl­e Environmen­t Protection project, the twoyear loan Validity Extension of the Samar Pacific Coastal Road project (R1.03 billion) and 46-month Extension of Loan Validity and Project Completion Schedule for the Jalaur River Multi-Purpose Project, Stage II (R11.21 billion).

The Philippine­s, one of Asia's fastest growing economies, is trying to improve infrastruc­ture such as roads, ports, railways and airports with the help of the private sector under its $180-billion "Build, Build, Build" program. (With Reuters)

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