SMC plans Aerotropolis in Bulacan – 2,000 hectares – 4 runways near Manila Bay

11/3/2016 | 5:02 0 Posted in Local Issues, Nation

SMC

San Miguel Corp. is one of those entities of the business world that do not give up their plans so easily; they have been harboring the idea of constructing a modern airport to serve Metro manila since there is still a veritable need to have an ultramodern airport that does not have the infirmities that the current airport suffers from.
The original proposal that they had floated had envisaged that the new airport would be constructed on land that was procured by reclamation of land from the Manila Bay. But, this time around there has been a rethink and recasting of ideas by the massive conglomerate and what has materialized is a better, more sensible plan.
The proposal now is that the site of this new airport will be the nearby Bulacan province.
This was disclosed by Roberto Lim, the Undersecretary for Aviation. He mentioned that there had been no initiative from the side of the government; it was an initiative taken by the San Miguel Corporation on its own since there was a need to have an alternative to the Ninoy Aquino International Airport which is aging fast and suffers from quite a few shortcomings.
The main scourge of the old airport has been the massive congestion of traffic that seeks a new option.
Thus what we have in the offing is an Aerotropolis which is normally a suburban area or an outlying where a city is built around an airport instead of the other way round.
It envisages the creation of a city and commercial development of the areas around the proposed airport; thus, the new aerotropolis that is being built adjacent to the Manila Bay but located in Bulacan province is being set up by san Miguel Corporation.
The ambitious project will see the construction being taken up in about 2000 hectares of land and would be having at least four runways which may see an outlay of about $ 10 billion.
Lim explained the whole process that will have to be undergone before this project could see the light of the day; as for all the unsolicited bids, the procedure is that rival bidders will have to be provided with a real chance to outdo the proposed bids of the San Miguel Corp.
Moreover, that would also happen only after all the steps for a project of this size can be bid for by all the interested parties. That would involve there is a long list of compliances, several approvals.
Once all the formalities have been drawn up, the consolidated project papers will be put up to the National Economic and Development Authority (NEDA) Board which has President Duterte as its Chairman.
The project, once passed by the President will become a reality. Even though the process is a long drawn out one, it may be expedited in this particular case because of the stupendous importance of the project.
The need of upgrading the infrastructure with the addition of a new airport is foremost in view of the fact that we are lagging behind in this aspect; there is some catching up that has to be done, he said.
Hence, it is highly likely that this project of SMC may see the light of day even as soon as within this year. Lim also explained that all the other supplemental infrastructural requirements like highways, expressways and townships were also part of this consolidated proposal which speaks volumes of the time and detail that it has been subjected to.
Speaking on the subject of unsolicited bids Arthur Tugade, Secretary Transportation elaborated that all such projects were welcome but there were certain conditions attached to them. Additionally, the government was under no compulsion for providing:
1. Any form of support or help,
2. Any sovereign guarantees, and
3. Any subsidies.
San Miguel Corporation
It may be mentioned here that San Miguel Corporation is the largest of the publicly listed companies that delves into diverse verticals including Packaging, Foods, beverages and is vast conglomerate that is making forays into Oil, Fuel, Airlines, Infrastructure.
It started with the beer with their name San Miguel Beer that is one of the top selling brands and is now employing more than 17000 employees and hundreds of facilities spread across Australia, Malaysia, Thailand, Vietnam, China, Hong Kong and Indonesia.
Due to its Filipino origin and ownership, it is the biggest company in the Philippines in terms of revenue earnings. It also has forayed into power generation and infrastructure.
This is not the first attempt that this giant conglomerate is making to set up an airport to meet the already overflowing needs of Metro Manila.
An earlier proposal envisaged the construction within Metro Manila but it also meant that the Manila Bay was to be further affected by environmental degradation which would have invited the wrath of environmentalists.
But, SMC which has been after this new air gateway for Metro Manila, had sent a proposal as early as 2014. It is already operating the Boracay Airport after diversifying into infrastructure projects.
The proposal began with the reclamation of 1600 Hectares of land in Manila Bay but the Aquino administration let it go into cold storage.
The congestion in the area around Naia has far exceeded the anticipated maximum capacity of 31 million passengers per year but 2015 saw a record 37 million passengers using the facility and causing severe congestion in its vicinity.
The Duterte administration has been seized of the matter since the Aquino government had approached the International Cooperation Agency of Japan (JICA) but the agency could not finalize the preliminary surveys and studies that are required for building an airport, Lim explained.
At that time, the Aquino administration had identified Cavite Air base, Sangley point which was to be revived for setting up an air gateway.
The final option for locating that airport was at Clark International Airport but the task was highly challenging since the requirements were difficult to meet; it also required the construction of a mass transit system or a railway network.
Hence, this proposal by SMC is likely to materialize soon with a decision likely within this year.