San Miguel submits new airport deal

SAN Miguel Corp.’s ( SMC) bid to develop an airport in Bulacan could soon be challenged after the conglomerate submitted a revised concession agreement to the Transportation department.

Transportation Undersecretary Ruben Reinoso Jr. said the revised deal for the development of the New Manila International Airport ( NMIA) took into account comments from the department, National Economic and Development Authority ( NEDA) and the Department of Finance.

Pressed for details, he said that these included “provisions on material adverse government action, what constitutes material adverse government action and what constitutes change in law to warrant compensation by the government to the private sector.”

“Those are the major issues. Well of course … [there is also the] determination [of] payment in case of the fault of either party,” he added

The revised concession agreement is “now under review and due for another negotiation on Monday,” he told reporters at the sidelines of a government briefing on the economy.

Transportation department approval would mean the deal’s being forwarded to the NEDA’s Investments Coordination Committee.

“[S]imultaneously we are now preparing for the Swiss challenge, which means ... we are drafting the terms and reference and minimum performance standards and specifications, the bid parameters and the risk allocations matrix which will form part of the tender documents for the Swiss challenge,” Reinoso said.

Awarding of the contract could happen by “early next year” or “toward the end of the year,” the Transportation official added.

The P735-billion airport project, touted as an alternative to Metro Manila’s congested Ninoy Aquino International Airport, will involve a concession period of 50 years.

San Miguel has named Standard Chartered Bank and Sumitomo Mitsui Banking Corp. as co-financial advisors for the development of the NMIA.