SMC gets Neda ok for airport project

The National Economic and Development Authority’s Investment Coordination Council (Neda-ICC) approved the proposal of San Miguel Corp. (SMC) to build a P700-billion airport in Bulacan.

The new international airport being pitched by SMC is one of the nine projects approved by the Neda-ICC with a combined cost of P900 billion.

These projects will be sent to President Duterte for his approval.

SMC president Ramon Ang confirmed the approval of the company’s proposal but stressed that it was still at the “Neda level.”

Neda Undersecretary Rolando Tungpalan said they were still working out a schedule with Malacañang for the next meeting.

SMC’s project involves the construction of a 1,168 hectare airport, and a 2,500-hectare city complex. It is expected to be completed in six years upon approval.

Tungpalan earlier said that since the project is unsolicited, it would be subject to a Swiss challenge.

“There was a reasonable rate of return that was being recommended, that will still be approved by the Neda board,” he said.

Under a Swiss challenge, the government invites private groups to make competing offers for the unsolicited project, while giving the original proponent the right to match them.

“But apart from the reasonable rate of return, it’s important to bear in mind that there is minimum performance standards and specifications and key performance indicators that have to go with it,” Tungpalan said.