MANILA, Philippines — The provincial government of Cavite and its potential joint venture partner are targeting to break ground with the development of the massive Sangley Point International Airport (SPIA) project by the end of the year.
Cavite Gov. Jonvic Remulla said he intends to pursue the development of the SPIA, a project which had previously suffered numerous setbacks. “We should be scheduled for ground breaking by the fourth quarter of 2022,” Remulla told The STAR.
Luico Tan’s MacroAsia Corp. and state-owned China Communications Construction Co. Ltd. won the first bidding for the SPIA project in 2019. The airport deal awarded to the tandem, however, was terminated in January last year due to various deficiencies in requirements to conclude the joint venture deal, prompting the provincial government of Cavite to start anew with its search for a partner.
Cavite’s second attempt to bid the project failed last October, with no parties submitting a bid.
By November, a powerhouse consortium of local and foreign companies called SPIA Development Consortium emerged from the picture and submitted a $10.9-billion unsolicited proposal to develop the SPIA.
The consortium’s proposal had been formally accepted by the provincial government of Cavite, with Remulla issuing the certificate of acceptance on Jan. 7.
The consortium has also been awarded the original proponent status (OPS), giving the group the right to directly negotiate the final terms and conditions of the joint venture with the province, as well as the right to match the best counter proposal that may be received during the 60-day mandatory competitive or Swiss challenge process.
Local members of the SPIA Development Consortium are the Yuchengco Group of Companies, Cavitex Holdings Inc. chaired by businessman Luis Virata, and Lucio Tan’s MacroAsia Corp., which will provide management and technical services for the aviation support and logistics component of the project.
Joining them are renowned global companies Samsung C&T Corp. of South Korea, Munich Airport International GmbH, and the London-based design and engineering firm Arup Group.
The consortium earlier said they are ready to transform the airport into a premium gateway that can provide an alternative to the congested Ninoy Aquino International Airport.
It intends to develop the SPIA in three phases, with Phase 1A to cost $2.3 billion, Phase 1B for $2 billion, and Phase 2 for $6.6 billion.
After final planning, design and financial closing, the consortium said work would immediately commence with the construction of a 4.6-kilometer connector road from the Kawit Interchange of CAVITEX that would lead to Sangley, with the time of completion estimated at two years.
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The article was originally published in PhilStar Global and written by Richmond Mercurio.
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