House OKs bill granting franchise to San Miguel subsidiary to construct Bulacan airport

The House of Representatives on Monday approved on third and final reading the measure granting San Miguel Aerocity Inc., a subsidiary of San Miguel Holdings Corp., a franchise for the construction of P735-billion New Manila International Airport (NMIA) project in Bulacan.

With a vote of 218 in the affirmative, six in the negative, and two abstentions, the chamber approved House Bill 7507 which also grants San Miguel Aerocity Inc. the franchise to construct, develop, establish, operate and maintain an adjacent airport city.

The franchise to be granted to San Miguel Aerocity Inc. is valid for 50 years, and requires it to construct the airport within one year from the effectivity of the act, complete its construction for 10 years, and commence operations within one year from the approval of the operating permit from the Civil Aviation Authority of the Philippines.

It also exempts San Miguel Aerocity Inc. from direct and indirect taxes and fees emanating exclusively from the construction, development, establishment, and operation of the airport and the airport city during its 10-year construction period.

At the same time, the franchise also entitles San Miguel Aerocity Inc. to generate income from the airport city equivalent to a project Internal Rate of Return (IRR) of 12% per year. However, it is required to remit to the national government any amount in excess of the 12% IRR of the airport city.

The planned NMIA is expected to help decongest the Ninoy Aquino International Airport (NAIA), which has now reached overcapacity.

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

It includes an 8.4-kilometer tollway connecting the airport to the North Luzon Expressway in Marilao, Bulacan.

Gabriela Women's Party Representative Arlene Brosas, however, expressed opposition to the passage of the bill, saying that it would cause the displacement of around 700 families living in Barangay Taliptip, Bulakan, Bulacan where the airport will be constructed.

The project will also threaten the country's food security as it would affect at least 41 metric tons of fishery and marine products coming from Taliptip River Stream in the same town, she added.

Brosas also slammed the speedy approval of the San Miguel Aerocity Inc. franchise while the franchise application of ABS-CBN did not get the same treatment.

"Aanhin ng ordinaryong mamamayan ang bagong airport sa panahon ng pandemya kung sila mismo ay tatanggalan ng kabuhayan, komunidad, at tahanan?" she asked.

"Ang kinatawang ito ay maninindigan kasama ang mamamayan ng Bulakan, Bulacan at mga karatig bayan para sa kabuhayan at karapatan," she added.—AOL, GMA News