Senators support franchise bill for construction of Bulacan airport

Several senators showed enthusiasm after the period of interpellation on the bill granting San Miguel Aerocity Inc. a franchise to construct and operate the New Manila International Airport in Bulacan was opened in the plenary on Wednesday.

Senator Grace Poe, sponsor of the House Bill No. 7507, said this is the first airport franchise bill that Congress will be passing.

"Yes, that's what I'm aware of. This is the first one and not only the first one but the biggest private investment," she said in response to the query of Senate President Pro Tempore Ralph Recto.

"This is the biggest private sector investment ever in this country, more so now during a pandemic. It is most welcome. The incentives provided here are more generous, which is commensurate to the investment being undertaken. I do support this project," Recto said, requesting to be made co-sponsor.

Once the bill is enacted, the construction of the P735-billion airport shall commence within a year and must be completed in 12 years at no cost to the government, according to Poe.

After the 50-year lifetime of the franchise, the airport shall be turned over to the government without any cost.

During the 10-year construction period of the Bulacan airport, the developer shall be exempt from all direct and indirect taxes and fees.

Poe said that for the remaining 40 years of its franchise, the airporrt developer shall be exempt only from income and property taxes until it has recouped its investments. After which, it shall be subjected to all taxes.

Incentives, multiplier effect

During the period of debates, Senate Minority Leader Franklin Drilon asked if the incentives provided by the franchise bill to the developer would be affected by the passage of the proposed Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).

Poe said the incentives stated in the franchise bill shall remain intact.

"In this case it's almost like a binding contract with the government. Meaning to say, that the prerequisite of having to invest and risk in such a huge endeavor needs some sort of commitment. This [franchise bill] should be more superior than the regulations that will be formulated by the FIRB (Fiscal Incentives Review Board)," she said.

Senator Richard Gordon also believes the Bulacan airport will attract more investments and have a multiplier effect in the economy.

The creation of job opportunities for Filipinos and the decongestion of the Ninoy Aquino International Airport in Pasay City are among the expected benefits of the airport construction.

"Even if there is a stay in the paying of the real estate taxes for the airport itself, the surrounding areas will develop, generating more taxes for the local government there," Poe added.

Senator Joel Villanueva, who hails from Bulacan, said the airport was "a dream come true" for the locals.

Senate Majority Leader Juan Miguel Zubiri likewise expressed full support to the franchise bill, saying the construction of the airport should have commenced four years ago.

The period of interpellation was temporarily closed to accommodate the comments of minority senators Risa Hontiveros and Francis "Kiko" Pangilinan.

Last week, the Philippine Institute of Volcanology and Seismology raised flooding and other geohazard concerns on the construction of the Bulacan airport.

San Miguel Corp. president and chief operating officer Ramon Ang said the conglomerate is tapping the three airport construction firms involved in the development of Singapore’s Changi International for the Bulacan airport.

The airport franchise bill is expected to be approved on second reading next Monday and on final reading in a quick session on Thursday.—LDF, GMA News