Biz Buzz: Boracay bet

If all goes in line with plans, San Miguel Corp. is set to formally submit to regulators as early as today its long-planned P3-billion unsolicited proposal to build a 1.5kilometer utility bridge that will connect Boracay Island to the Caticlan mainland.

It will probably take SMC 10 to 15 years to recover its investment, SMC president Ramon S.

Ang aka RSA said yesterday. If the government accepts this build-operate-transfer proposal, SMCexpects to recoup its investments by charging fees on the vehicles and pedestrians that will pass the bridge, the water and sewerage that will use the purposely-built pipelines under the bridge as well as the electricity that could be transmitted from the lines that the bridge will carry.

Recall that SMC plans to build under the bridge a large pipeline that could pump sewerage out of Boracay and another pipeline to bring in fresh water. Solid waste can also be transported out of the island using the bridge. SMC has thus argued that this bridge was crucial to Boracay’s sustainable rehabilitation—an alternative to shutting down the island every three years or so just to clean up.

The 10-15 year period of recovery is quite long, but RSA said it was something SMC must do to ensure the viability of Boracay Island as well as its investment in the area’s main international gateway, the Caticlan airport.

SMC is spending about P15 billion to redevelop the Boracay airport, which has been affected by the six-month closure of the island to pave the way for clean-up operations.

After completing the lengthening of the runway to accommodate bigger aircraft, RSA is now undertaking apron expansion. Airport apron refers to space where the jets are parked, unloaded or loaded, refueled and boarded.

Previously, RSA said it was estimated that Caticlan needed only about a dozen aprons. But now, he said many jets were expected to stay overnight on the island such that the airport must have enough space to handle 28 aircraft from 14 at present.

Caticlan’s new passenger terminal is also expected to be completed by the end of next year.

Despite the impact on the operations of Caticlan airport, RSA is very happy with the ongoing rehabilitation of Boracay, citing reports on how much of the long-ignored pollutants have finally been addressed. —DORIS DUMLAO-ABADILLA

Undelivered promise

It has been more than a month since the Department of Transportation said it would give the Naia “Super Consortium” an original proponent status (OPS) to rehabilitate and improve the country’s gateway in two weeks’ time.

The consortium—composed of seven business giants—proposed to spend at least P100 billion to increase the capacity of all the Naia terminals from the present 30 million to 47 million by 2020, and to 65 million by 2022.

Without this OPS declaration, Naia will remain as it is: A reminder to keep aflame our kulelat Third World status in the region.

That is, of course, unless DOTr undertakes the airport rehabilitation itself, as it said it might. Hmmm.

Which makes observers wonder: Does DOTr already have plans for this scheme? What about the budget for such a massive undertaking which has to go through Congress? What about the drafting of the terms of reference? What about the bidding for DOTr to get contractors? And most importantly, when will DOTr complete this, as everybody wants to have a better Naia right now?

If the simple Light Rail Transit Line 2 extension to Masinag which has been derailed for years now and the improvement of several airports in the provinces are any indications, the project’s “estimated time of arrival” will remain a big unknown. —DAXIM L. LUCAS

The Ty transformation

On some days, the Philippine business scene looks like a freefor-all, with this or that business group announcing one corporate takeover or one business deal after another. But some of the biggest conglomerates prefer to do things quietly and under the radar.

One such example is the group of taipan George Ty whose business interests are now largely run by his two sons

Arthur and Alfred Ty. Most people know Arthur, the older son, as the more reserved and quiet one, while Alfred is somewhat more extroverted. But make no mistake, both are capable taipans-in-the-making.

Understandably, Arthur is more conservative, in part because he is in charge of Metropolitan Bank and Trust Co., the country’s second largest financial institution, which is in the process of shifting its business model into a more aggressive and dynamic one to be better able to compete in the changing marketplace.

Alfred’s portfolio, on the other hand, involves more marketing work, especially in the case of Federal Land, which is busy transforming the Bonifacio Global City landscape through its flagship real estate project, which includes the towering Grand Hyatt Manila, high-end residential towers, as well as an upscale Nomura/Mitsukoshi retail development.

The entire block that starts at the showroom of Lexus Manila (another Ty group firm under Toyota Motors Philippines) goes all the way to the Kalayaan Avenue border of BGC and covers a total of 10 hectares—a lot of room for Federal Land’s commercial, office and residential developments.

Once completed in a few years, company officials estimate that the complex will hold a combined investment value of ... hold your breath ... at least P50 billion. But possibly a lot more. Not bad for a property originally frowned upon for being located on the fringes of the new central business district.

And to make it an even more attractive destination, Grand Hyatt will open later this year a new restaurant and bar located near the very top of the 66-storey hotel. Dubbed ‘ The Peak’, the venue will offer panoramic 360-degree views of the metropolis for patrons who can dine at its grill restaurant in the evening, and then party on as the venue becomes a club late into the night.

“We want this to be unlike anything people have ever seen before,” Alfred said.

Clearly, gone are the days when the Ty conglomerate was viewed as staid and boring. All that is changing now ... for both brothers. —DAXIM L. LUCAS

RLC’s theme parks

As shopping malls hatch bolder and grander offerings to boost foot traffic, Gokongwei-led Robinsons Land has come up with new ways to bring kids and families to its malls.

The Philippines’ first water playground—similar to the water park concept in Singapore Zoo—is set to open on July 14 in the new Robinsons Mall in Pavia, Iloilo City. The water playground called AquaFun is a 3,500-square meter park—not the usual swimming resorts but is conceptualized as an interactive wet playground that will immerse visitors into the aquatic life.

Visitors are, of course, required to wear waterproof attire as they can’t expect to enter this domain and stay dry.

The playground welcomes visitors with a 10-meter wide arc adorned with crashing waves and dolphins. The area is full of structures that spray water to cool down visitors. There are tall slides for the older kids and lower but wider slides for the younger ones. There’s a water pond for dipping tired feet.

The entrance tickets are priced at P300 per person on weekdays and P400 per person on weekends.

RLC is taking this diversification to theme park development to heart. Late last year, it opened digital playground PlayLab in Robinsons Galleria Cebu. The second PlayLab will soon open later this year at Robinsons Galleria Ortigas. —DORIS DUMLAO-ABADILLA INQ