San Miguel Corp.’s massive airport proposal in Bulacan province is entering its final week of bidding unopposed, setting the stage for a likely victory as the conglomerate seeks to solve long-term air congestion concerns in Manila.
With no rival bids ahead of the July 31 deadline, SMC will be formally declared the winner within days under the Swiss Challenge rules.
Giovanni Lopez, chair of the bids and awards committee (BAC) of the Department of Transportation, confirmed that no other bidder had emerged to challenge SMC’s unsolicited offer.
At P735.6 billion, SMC’s Bulacan proposal also marks the biggest private sector investment in the air sector, a crucial enabler of economic growth.
The project, dubbed the New Manila International Airport, will be part of a 2,500-hectare aerotropolis in Bulakan, Bulacan, roughly 50 kilometers northwest of Manila.
The conglomerate will build the project in phases, the first of which will consist of two parallel runways and a yearly passenger capacity of 35 million.
New capacity in Metro Manila is needed as air traffic worsens in the Ninoy Aquino International Airport (Naia). Last year, Naia handled 45 million passengers—well above its annual design capacity of 31 million.
Naia also has limited options to expand and with no alternatives, the Japan International Cooperation Agency said demand here would rise to 59 million passengers in 2025 and then almost double to more than 100 million passengers by 2040.
Under SMC’s proposal, first made in 2016, the airport will eventually have at least four runways and a capacity of over 100 million passengers a year. SMC will operate and develop the project through a 50-year concession period.
SMC has yet to name its partner for airport operations, although company president Ramon S. Ang said last November they were in talks with South Korea’s Incheon International Airport.
SMC’s Bulacan Airport project went through a long negotiation period, in part due to concerns over its financial viability. This stemmed from its large cost and its location, sandwiched between Naia and Clark International Airport in Pampanga province.
Clark Airport’s capacity is currently being increased while a group of tycoons via the Naia Consortium submitted an offer to expand and operate Naia for a period of 15 years.
A separate offer from the Cavite government to redevelop the nearby Sangley Airport into an international hub could further complicate prospects for SMC’s New Manila International Airport.
Ang himself acknowledged those risks during a business summit last October but he said SMC was committed to finishing the project.
“We’re betting almost the whole future of the company because this project will be very good for our county,” Ang had said.