SMC urges gov't to bid out new airport

By Jon Carlos Rodriguez,

Posted at Jun 10 2014 06:40 PM | Updated as of Jun 11 2014 05:19 PM

MANILA – San Miguel Corp. (SMC) is urging government to open the bidding for a new airport that will decongest the Ninoy Aquino International Airport (NAIA).

SMC President Ramon Ang said the company will not submit an unsolicited proposal and will only join the project through bidding.

“Kapag nag-submit ako ng unsolicited proposal, sasabihin nila ‘undue advantage’ kasi napag-aralan mo na at wala nang pagkakataon ‘yung iba, kaya ayoko non. The idea and the offer is to open the project for bidding, ‘beauty contest’ nalang kung sino ang may mas magandang proposal,” Ang said in a press conference on Tuesday.

Ang met with President Aquino last month to discuss a new $10-billion airport along the Manila-Cavite coastal road.

Based on SMC’s study, the new international gateway will have four runways and higher passenger capacity compared to NAIA’s single runway.

But Ang clarified that the project was not formally submitted as a proposal to the government.

“We did not offer an unsolicited proposal. I do not believe unsolicited proposals will fly because I know the statement of President Aquino na sinasabi ayaw niya ng unsolicited proposals,” he said.

Ang said an open bidding process, which will only take government 3 months, will give other parties an opportunity to provide government with options.

According to Ang, both Sy-led SM Corp. and Gokongwei’s JG Summit Holdings Inc. already confirmed interest in the project and will likely be tapped by SMC as partners.

“Kapag tinayo namin ang airport, ang partner namin Gokongwei and SM…Nagkausap na kami ng dalawang grupong ‘yun. Pareho silang welcome,” he said, noting that other groups are also expressing interest in the project.

SMC owns a stake in Philippine Airlines while JG Summit owns low- cost carrier Cebu Pacific.

Ang said that if SMC is awarded the contract, the new airport will be operational in 5 years. It will reach its full capacity of 150 million passengers in 7 years.

Transportation Secretary Jun Abaya earlier said government has yet to decide on the location of the new airport.

He said feasibility studies will still be conducted once proposals have been finalized, noting that Ang has yet to formally present complete details of the project.


Ang said SMC expects revenue growth of at least 20 percent from its new businesses in 2014 while revenue from old businesses is expected to grow by at least 5 percent.

“May konting benefit manggagaling sa Petron refinery at may konting dagdag na revenue from Star Tollway dahil ngayon palang nako-consolidate ‘yun,” he said.

Ang expects the share of new businesses to account for 76 percent of revenue in 2014, compared to 72 percent in 2013.

Philippine Airlines (PAL), meanwhile, is seeing strong cash flow as of April due to savings from fuel efficient planes.

“Ngayon profitable na, but full year next year, talagang makikita mo mas malaki pang improvement kasi dadating na ang mga bagong eroplano,” he said.

Ang added that talks to buy a stake in GMA Network are still ongoing. He earlier said the possible acquisition will be made in his personal capacity.