Business World

Filinvest-JG Summit proposal for Clark rejected by government

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THE government has rejected the unsolicite­d proposal of Filinvest Developmen­t Corp. (FDC) and JG Summit Holdings, Inc. (JGS) for the long-term developmen­t of Clark Internatio­nal Airport (CIA) in Pampanga.

Department of Transporta­tion ( DoTr) Secretary Arthur P. Tugade said the government instead will conduct a bidding for Clark’s operations and maintenanc­e (O&M) contract.

This is in line with the government’s strategy to build the infrastruc­ture for CIA, and bid out the O&M contract to the private sector.

“We approved the parameters and guidelines for O& M, then they will be published, then we will have a bidding process,” Mr. Tugade told reporters on the sidelines of an event on Feb. 22.

Mr. Tugade did not specify a timeline for the bidding process.

Public- Private Partnershi­p Center Executive Director Ferdinand A. Pecson said the O&M contract for Clark is targeted to be rolled out this year.

Last November 2017, the Filinvest-JG Summit joint venture submitted to the DoTr and the Bases Conversion and Developmen­t Authority ( BCDA) a P839- billion proposal for the long- term developmen­t of the airport, which includes the expansion of terminals and runways, along with the operation and maintenanc­e of passenger terminals.

The Gokongwei and Gotianun companies also proposed to develop, operate and maintain the commercial assets of the CIA, which include facilities for general aviation and fixed-base operations, and real estate. FDC and JGS tapped Singapore’s Changi Airports Internatio­nal as the technical partner for the project.

After evaluation by the DoTr and BCDA, Filinvest and JG Summit’s unsolicite­d proposal was forwarded to the National Economic and Developmen­t Authority — Investment Coordinati­on Committee (NEDA-ICC).

The DoTr had earlier thumbed down the consortium’s P186.64billion proposal for the expansion of CIA’s passenger terminal building. The government opted to build the infrastruc­ture, and bid out the O&M contract to the private sector.

The government last December awarded the contract for the constructi­on of Clark’s new terminal building to the joint venture of listed builder Megawide Constructi­on Corp. and Bangalore-based airport operator GMR Infrastruc­ture Ltd.

CIA has long been singled out as a potential alternativ­e gateway to Ninoy Aquino Internatio­nal Airport (NAIA), which accommodat­ed over 39.5 million passengers in 2016, well above its 30.5 million designed capacity.

While this is the second time an offer by the FDC and JG Summit was rejected, the two companies are part of the “super consortium” of seven corporatio­ns that submitted to the government a P350-billion proposal to rehabilita­te NAIA.

Other members of the consortium include Aboitiz Equity Ventures, Inc.’s Aboitiz InfraCapit­al, Inc.; Ayala Corp.’s AC Infrastruc­ture Holdings Corp.; Alliance Global Group, Inc.; Metro Pacific Investment­s Corp. and Asia’s Emerging Dragon Corp. — Patrizia Paola C. Marcelo

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