SMC seen to bag Bulacan airport project this week

MANILA, Philippines — San Miguel Holdings Corp. is expected to be awarded the New Manila International Airport project in Bulacan this week, which will bring it closer to getting the government’s go-signal to commence construction for the airport project.

Transportation Undersecretary for aviation Manuel Antonio Tamayo told The STAR that the government is poised to issue the notice of award to San Miguel any time this week.

The Swiss challenge period for the New Manila International Airport project ended last July 31 with San Miguel’s proposal unchallenged.

But before a notice of award will be issued, a technical working group must first come up with a report to be forwarded to the bids and awards committee, which will then issue a resolution recommending the award to the Department of Transportation (DOTr).

Upon the DOTr’s issuance of the notice of award, San Miguel will have 20 days to comply with certain conditions which include posting of a performance security and proof of commitment, among others.

The performance security may be in the form of cash (minimum of two percent of the project cost), irrevocable letter of credit (minimum of five percent of project cost), or surety bond (minimum of 10 percent of project cost).

The DOTr will then check after the 20-day period whether the proponent complied with the conditions or not.

If it is fully compliant, a formal signing of contract and issuance of a notice to commence construction of the project would then take place.

The DOTr is targeting to issue the notice to proceed by the first week of September at the latest.

From the start of construction, the  New Manila International Airport is seen to start operations within four to six years.

The P754 billion New Manila International Airport project involves the construction, operation, and maintenance of an international airport which will have a design capacity of 100 million passengers annually, and airside facilities with a configuration of four parallel runways.

San Miguel Corp. president and chief operating officer Ramon S. Ang earlier said the project would be built “at no cost to government and with no subsidies or guarantees.”