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LTG venture bags P208-B Sangley deal

Maria Romero

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Department of Transportation Secretary Arthur Tugade conducts a site inspection of the revitalized Sangley Airport in Cavite to meet the directive of President Rodrigo Duterte for the immediate utilization of Sangley Airport for general aviation and turboprop cargo operations. DOTR PHOTO

With no challengers, Chinese state-owned China Communications Construction Company Ltd. (CCCC) and Lucio Tan group-led MacroAsia Corp. are set to transform the former Air Force base in Sangley Point, Cavite into an international gateway to decongest Manila’s Ninoy Aquino International Airport (NAIA).

MacroAsia told the Philippine Stock Exchange (PSE) on Friday it received by e-mail the Notice of Selection and Award for the Sangley Point International Airport project (SPIA) from the provincial government of Cavite.

“Acting favorably upon the recommendation of the Provincial Government of Cavite’s PPP-Selection Committee dated 11 February 2020, the CCCC and MacroAsia is hereby selected as the Joint Venture Partner of the Province of Cavite,” the notice read.

“(The consortium) is awarded the development and implementation of Phase 1 of the SPIA Project with an estimated Phase 1 total project cost of approximately P208.5 billion,” it added.

Solo bidder

From the signing of the Joint Venture Development Agreement (JVDA), MacroAsia disclosed it will take 12 to 18 months for the consortium to complete the detailed engineering design leading to financial closing.

CCCC, one of China’s largest infrastructure firms, and partner MacroAsia were the sole bidders for the Cavite government’s planned P500-billion Sangle Point International Airport (SPIA).

CCCC-MacroAsia was among the seven groups that formally expressed interest to bid by acquiring joint venture documents which were issued last 11 October 2020.

Other interested companies were Metro Pacific Investment Corporation (MPIC), Prime Asset Ventures and Philippine Airport Ground Support Solutions Inc.

It can be recalled that the Cavite government turned down the bidders’ requests for more time after the deadline was moved from 25 November to 17 December last year.

Easing NAIA woes

Located at a straight line distance of about 11-kilometers away, the SPIA is part of the Department of Transportation’s (DoTr) so-called multi gateway strategy to address congestion in Manila and nearby provinces.

Cavite originally submitted the project as an unsolicited proposal to the DoTr but the complexity of its nature and the huge costs of construction prompted the city to partner with the private sector.

The project will require the reclamation of over 1,400 hectares of land around Sangley Airport — formally known as Danilo Atienza Air Base.

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