Clark Airport seeks Palace opinion on $144-M proposal of Fil-Korean group for DMIA Terminal 2

MANILA, Philippines - Clark International Airport Corp. (CIAC) is seeking clear directions from Malacañang on the unsolicited proposal submitted by a Filipino-Korean consortium to undertake for $144 million the development and operation of a second terminal at the Diosdado Macapagal International Airport (DMIA).

CIAC president and CEO Victor Jose Luciano told The STAR that he sought Malacañang’s opinion on whether it wants CIAC to go on an unsolicited or solicited route in finding a private sector partner for DMIA Terminal II.

Diversifying conglomerate San Miguel Corp. (SMC) earlier acquired a 70 percent stake in Philco Aero, the Filipino partner in the Filipino-Korean consortium that submitted an unsolicited proposal to undertake the DMIA Terminal II project.

Philco Aero president Ricardo Penson told The STAR that SMC has placed its investment in the former in escrow and will be released as soon as they officially bag the project.

The STAR earlier reported that the Bases Conversion Development Authority (BCDA) has given subsidiary CIAC, particularly the latter’s joint venture selection committee, the go-signal to prepare the terms of reference to subject the Philco Aero proposal to a Swiss challenge as required by government rules for unsolicited proposals to undertake joint venture projects with the government.

Penson also said in an interview that SMC has reimbursed the cost shelled out by Philco Aero for the development of the unsolicited proposal submitted to CIAC.

DMIA, which is 85 kilometers away from the Ninoy Aquino International Airport, is the main airport serving the immediate vicinity of the Clark Special Economic Zone.

DMIA’s international passenger traffic reached 607,704 in 2010 while domestic passenger volume hit 46,525.

Luciano revealed that Philco Aero proposed the construction of a new passenger terminal with commercial facilities. “If you look at Heathrow, Changi and even Hong Kong, 60 percent of the revenues come from land use or non-aeronautical fees such as lease rentals and commercial spaces and the rest from landing, take-off and parking fees (aeronautical fees),” he said.

Once the new terminal is operational, he revealed that plans are to convert the old terminal into a domestic terminal or even a budget terminal.

Luciano added that plans for a third terminal will only come in once DMIA has been designated as an international gateway.

Metro Pacific Investments Corp. (MPIC) has likewise expressed interest in developing not only DMIA Terminal II, but also linking the Clark airport to Metro Manila via a high-speed rail system.

But Penson said their group has a cheaper approach to connecting Clark to Manila, and that is by way of articulated transport buses.

He said that each RTB will cost around 15,000 euros per bus with each bus able to accommodate 200 passengers. “We would probably need 10 buses,” he said. This would mean the cost of the 10 buses would be around P9 million.

Aside from the buses, Penson said they can construct a one-lane culvert dedicated for the buses.

He pointed out that unless DMIA is designated as a gateway, it would not make financial sense to spend so much for a transport system connecting Clark to Metro Manila, especially since a big portion of DMIA’s passengers come from Central Luzon and not from Metro Manila.

Penson revealed that since the mass transit system was not part of their unsolicited proposal to CIAC, their consortium can either amend their original proposal or submit the bus system project as a separate proposal.

He said that he had discussed the matter of the buses with SMC president Ramon Ang.

It is not yet clear how MPIC intends to enter the picture, although observers say the company can submit a better offer during the Swiss challenge phase. Under a Swiss challenge, any qualified group can submit a better proposal which the proponent of the unsolicited proposal has the right to match.

But if government decides to go through the solicited route approach, then MPIC can submit a bid. The SMC-led group will also have to post a bid.

MPIC chairman Manuel V. Pangilinan earlier said they are in talks with possible foreign partners involved in the aviation business for a comprehensive multi-billion airport project in Clark that will involve building and operating not only a second terminal at the DMIA but also a modern railway system connecting the airport to Manila.

“We need foreign partners for this project. Because basically, there is no one in this country who has built or made or run a big airport as big as this. We have to import expertise initially. We are talking to several groups involved in the airport business within the region,” Pangilinan said.

He also revealed that he is still open to a possible partnership with the SMC Group for the development of the Clark airport.