Guarantee sought for airport project
The Finance department is not standing in the way of San Miguel Corp.’s (SMC) P735-billion Bulacan airport project but the conglomerate must guarantee the work to be done by unit San Miguel Holdings Corp. (SMHC), a Cabinet official said.
SMC quickly replied that it would “abide by the Department of Finance’s demands.”
Speaking at a Senate hearing on Monday, Finance Finance Secretary Carlos Dominguez 3rd said “we take this opportunity to categorically say we have not caused the delay in the Bulacan airport.”
“As a matter of fact, we are even providing assistance to accelerate the approval and implementation of the project,” he claimed.
Dominguez, however, said his department had suggested that the Department of Transportation require that both SMC and SMHC execute a joint and several liability agreement.
He said this “would make San Miguel Corporation, the parent company, stand behind San Miguel Holdings, the private proponent, which is financially at this point incapable of undertaking a P700-billion project.”
The Finance chief also pointed out that there were other concerns that needed to be addressed, including how the Bulacan airport would affect the government’s plan to develop the Clark economic zone as an alternative to Metro Manila.
“We wanted to know how the Bulacan airport, which is just 65 kilometers away from Clark, will affect the value of the New Clark City, which is by the way, the property of the Filipino people,” he said.
“Will the project require the construction of additional lanes in the North Luzon Expressway? Will the project change the alignment of the proposed rail system to Clark?,” he added.
“Do we need additional lanes in the North Luzon Expressway to be constructed? Do we need to change the alignment of the proposed rail system to Clark?,” Dominguez continued.
San Miguel, for its part, said it agreed to comply with the Finance department’s demands.
“In fact, as early as May 18, following the approval of the project by the NEDA (National Economic and Development) Board, SMHC conveyed to the Department of Transportation its willingness to execute the agreement as soon as the terms of the concession agreement (CA) are finalized with the government,” the
company said in a statement released in the wake of the Senate hearing.
“The final CA will form the basis of what SMC will be guaranteeing and jointly liable for,” it added.
The company also assured that a joint and several liability undertaking meant that its financial capability would back the SMHC project.
“Given the importance, impact and urgency of building a modern, world-class airport to the nation and the Filipino people, SMC and SMHC will abide by the demands of the Department of Finance to ensure the project takes off,” it said.
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