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DOTr formally awards P735-B Bulacan airport contract to San Miguel

The Department of Transportation (DOTr) on Wednesday formally awarded the contract to build and operate the P735-billion New Manila International Airport in Bulakan, Bulacan to conglomerate San Miguel Corporation's (SMC) infrastructure unit.

In a statement, the DOTr said it has issued the notice of award to San Miguel Holdings Corporation (SMHC).

Under the award notice, SMHC will undertake the financing, design, construction, supply, completion, testing, commissioning, and operation and maintenance of the Bulacan airport.

The company is required to submit necessary documents to the DOTr's Special Bids and Awards Committee (SBAC) within 20 days after receipt of the notice of award.

The required documents to be submitted by SMHC include the following:

  • The notice of award with the written conformity of SMHC's authorized representative;
  • Construction Performance Security in an amount equal to a percentage of the first implementation phase cost amounting to P450 billion, excluding financing and other charges; and 
  • Letters from reputable financial institutions expressing their willingness to provide sufficient credit facilities and also indicating the terms and conditions for such facilities.

Once SMHC complies with the requirements, the DOTr will then issue a notice to commence construction of the project.

San Miguel president and COO Ramon Ang earlier told GMA News Online that the company is ready to comply with the documentary requirements within the prescribed 20-day period so the construction of the airport can begin.

The Bulacan airport project is expected to commence construction by the end of the year, and is targeted for operations within four to six years.

On July 31, the DOTr concluded the Swiss challenge to SMHC's unsolicited proposal, with other party challenging the original proponent for the airport project. 

The DOTr said that its SBAC's Technical Working Group (TWG) recommended the contract to be awarded to SMHC in a resolution dated August 1.

Under the Build-Operate-Transfer (BOT) Implementing Rules and Regulations (IRR), if no comparative or competitive proposal or no complying bid is received by the agency, the original proponent shall immediately be awarded the contract.

An unsolicited proposal from San Miguel’s infrastructure unit, the Bulacan airport was approved by NEDA Board—chaired by President Rodrigo Duterte—on April 26 subject to the resolution of pending issues, including the joint and several liability agreements by San Miguel Holdings and parent San Miguel Corporation.

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

The Bulacan airport has a design capacity of 100 million passengers a year, but can be expanded to 200 million, and is targeted to accommodate 240 aircraft movements per hour. 

The project will also include the construction of an 8.4-kilometer tollway that will connect the airport to the North Luzon Expressway in Marilao.

Transportation Undersecretary for Planning and Project Implementation Ruben Reinoso said that once completed, the project will help in decongesting the Ninoy Aquino International Airport (NAIA), while also providing the traveling public a world-class airport geared to give the Filipino people a comfortable life.

“Finally, we can push forward with the Bulacan International Airport. Malaking ginhawa po ito para sa mga kababayan natin sa Central Luzon at northern part ng Metro Manila. Once operational, this new airport will give connectivity options to our citizens,” Reinoso said. — BM, GMA News