DOTr eyes award of P735-B Bulacan airport deal by end of 2018

The Department of Transportation (DOTr) on Wednesday said it targets to award the P735-billion contract for the construction of the Bulacan International Airport by the end of 2018.

"Minamadali na namin ang proseso. Ang target po namin tapusin ang proseso by the end of the year," Transportation Secretary Arthur Tugade during the Senate hearing on the Xiamen Air incident.

This is in response to Senate President pro tempore Ralph Recto's call for the government to immediately commence construction of alternative airports for NAIA.

"May lupa naman... gawin na dapat. Wala namang gastos ang gobyerno. May track record naman," Recto said.

The Transportation chief said that proponent San Miguel's track-record in completing infrastructure projects is among the considerations being looked into by the government to fast-track the process.

Project proponent San Miguel Holdings Corp. earlier said it is now ready to finalize the concession terms for its proposed Bulacan airport after the DOTr submitted the revised draft concession agreement, which included comments from the National Economic and Development Authority (NEDA) and Department of Finance. 

Once both parties agreed on the terms, the DOTr will finally begin the Swiss Challenge process.

During the Senate hearing, Transportation Undersecretary Ruben Reinoso said there are certain provisions in the draft concession agreement that needs to be clarified with San Miguel.

"The obligations of the government and the acquisition of right of way. That is something that we need to clarify," Reinoso said.

Despite this, the Transportation official assured that the Bulacan airport project will not have a provision on government guarantee and will be purely a private sector risk.

San Miguel president and chief operating officer Ramon Ang earlier said that the company intends to finance the project using its own resources.

The Bulacan airport project, an unsolicited proposal from SMC’s infrastructure unit, was approved by NEDA Board —chaired by President Rodrigo Duterte— on April 26 subject to resolution of pending issues, including the joint and several liability agreements by SMHC and its parent company.

It involves the construction, operation, and maintenance of a 2,500-hectare airport in Bulakan, Bulacan. The development will also include a passenger terminal building with airside and landside facilities, and an airport toll road, and four runways.

Interests in alternative gateways such as the Bulacan airport were renewed after a Xiamen Air aircraft skidded off Runway 06/24 of the Ninoy Aquino International Airport on August 16.

Dozens of flights were canceled, diverted, or delayed, and tens of thousands of displaced passengers were stranded at the Ninoy Aquino International Airport (NAIA) when its main runway was closed more around 36 hours.

Recto urged the DOTr to immediately commence the Bulacan airport as well the proposed Sangley airport and the NAIA rehabilitation.

"I firmly suggest that govt decide immediately, gawin ang NAIA, Bulacan... hindi bukas ngayon na. Tutal naman wala namang government guarrante at least sa Bulacan," the senator said.

Recto said government must now decide whether NAIA's decongestion will be through the expansion of Clark airport in Pampanga, the building of  San Miguel’s airport in Bulacan, or the  proposal to expand NAIA.

The senator said NAIA has already past its peak as its passenger volume had doubled from 20.4 million in  2007 to 42 million in 2017, citing that the airport's carrying capacity is at 31 million passengers yearly.

“Kung yan nga ang totoo, then we are past peak capacity. And with no alternative being built, then we are pushing NAIA beyond its limit to the inconvenience and danger of passengers,” Recto said.