Cavite Accepts Proposal to Develop Sangley Airport from Lucio Tan, Yuchengco Group-Led Consortium
A proposal by the consortium led by Lucio Tan and the Yuchengco family to develop Sangley Airport has been accepted by the provincial government of Cavite. SPIA Development Consortium was awarded original proponent status (OPS) for its $10.9-billion (P556.28 billion) unsolicited proposal to turn Sangley Point International Airport (SPIA) into a world-class aviation hub south of Manila.
SPIA Development Consortium submitted the proposal last November, just a few days after Cavite government officials declared a second proposal a failure. The consortium is composed of the Yuchengco Group of Companies, MacroAsia Corp., Samsung C&T Corp., Munich Airport International GmbH, and Cavitex Holdings Inc. (which is unrelated to the Metro Pacific group).
“The acceptance of the unsolicited proposal is a clear sign of the Province’s commitment to deliver this nationally significant and legacy project to the Filipino people,” the consortium quoted Cavite Governor Jonvic Remulla as saying in a statement. “We are very glad and hopeful that this consortium made up of reputable domestic and well-known global development and investment companies will help us successfully complete the project.”
After being granted OPS, the consortium is now free to directly negotiate the final terms and conditions of the joint venture with the province. It also allows the consortium to match the best counter proposal that may be received during the 60-day mandatory competitive challenge process.
The SPIA Development Consortium proposal involves two phases: Phase 1A, worth approximately $2.3 billion, involves the development of the first runway and terminal building that can handle up to 15 million passengers per annum, while Phase 1B, worth another $2 billion, will expand the airport’s capacity to 25 million passengers per year.
Phase 2, meanwhile, costs $6.6 billion and involves the construction of a second runway and the expansion of the airport’s capacity to 75 million passengers annually.
The consortium said work on the project would begin with the construction of a 4.6-kilometer connector road from the Kawit Interchange of Cavitex that would lead to Sangley that is estimated to take two years. This comes after final planning, design and financial closing.
SPIA-DC said it is “ready to transform Sangley airport into a premium gateway that can provide an alternative to the congested Ninoy Aquino International Airport (Naia), thereby significantly boosting economic growth and enhancing the local tourism and aviation industries.”