Connect with us
Click me!

Business

Bulacan, Clark airports OK’d with zero guarantee

Joshua Lao

Published

on

The Duterte administration has approved the planned construction of additional airports in Bulacan and Clark as part of the government’s ambitious “Build, Build, Build” program which seeks to modernize the country’s infrastructure.

This was learned from Finance Secretary Carlos Dominguez III over the weekend as he announced the National Economic and Development Authority (NEDA) board has endorsed the contracts for both airports.

“The NEDA board just approved two contracts for the airports in which there is absolutely no guarantee,” Dominguez said.

According to the Finance chief, the zero guarantee was the government’s condition in approving the concessionaire for the proposed construction of the Bulacan airport as well as the expansion of the Clark International airport.

“They will see a big difference from before. The contract in Clark and Bulacan will have no government liability,” he explained in reference to the guarantee given for the Cebu airport contract.

Earlier, Dominguez pointed out that despite a huge difference between the actual revenues and the projected income of the Mactan-Cebu International Airport (MCIA), the government had provided a guarantee there will be no other competing airport in the area.

In addition, under the previous administration’s MCIA concession agreement, a massive termination fee amounting to P20 billion must be provided by the government should it decide to build another airport in order to accommodate increased passenger traffic.

Both projects have undergone fresh discussions from the board during the Investment Coordination Committee (ICC)-Economic Development Cluster meeting last Wednesday.

Also, the ICC discussed the reasonable rate-of-return for the expansion project as well as their public-private partnership arrangement for operations and maintenance.

Click to comment