SMC readies draft concession deal for Bulacan airport project

Conglomerate San Miguel Corp. (SMC) is ready to meet the Friday deadline for a new draft concession terms with the government in hopes of moving forward with its proposed international airport in Bulacan as soon as possible.

San Miguel Infrastructure chief finance officer and head of treasury Raoul Romulo said his company is “almost finish” with the draft concession agreement and will be ready for submission by tomorrow.

“We’re doing the concession agreement now. That’s the contract with the government. We have been working very hard on that for some time now,” Romulo said.

“We’ll finish it. We’ll meet the Friday deadline,” he said.

Transportation Undersecretary for planning Ruben Reinoso said during Monday’s Senate hearing that the revised concession agreement would be reviewed next week should the Department of Transportation (DOTr) receive it by Friday.

Transportation Secretary Arthur Tugade, for his part, said the target is to complete the entire process, including the Swiss challenge, for the Bulacan airport within the year.

The P735 billion New Manila International Airport project in Bulacan got the approval of the National Economic Development Authority in April.

The project involves the construction of a world-class, major international gateway with four to six parallel runways, modern terminals, a sea port, an industrial zone, and necessary infrastructure such as expressways.

The Department of Finance on Monday raised concern over the capability of San Miguel Holdings Corp. (SMHC) to fund the construction of the international airport and has asked its parent company, San Miguel Corp. (SMC), to back up the project.

In response, SMC said the final concession agreement would form the basis of what it would be guaranteeing and jointly liable for.

“SMC agrees with Secretary Dominguez on his position that both SMC and SMHC, should undertake a joint and several liability agreement, for the New Manila International Airport project in Bulacan. In fact, as early as May 18, following the approval of the project by the NEDA Board, SMHC conveyed to the Department of Transportation its willingness to execute the agreement as soon as the terms of the concession agreement are finalized with the government. Very simply, the joint and several liability undertaking means that the project will be fully backed by the financial capability of SMC, the parent company of SMHC,” SMC said.