With 22 affirmative votes and no negative votes, senators approved a bill granting a 50-year franchise to a subsidiary of San Miguel Corp. to build an airport in Bulacan.
The Senate approved on third and final reading House Bill 7507 granting a franchise to San Miguel Aerocity Inc. to “construct, develop, establish, operate and maintain a domestic and international airport” in Bulakan, Bulacan.
The franchise will be effective for 50 years after the proposed law is passed. The term of the franchise includes the airport’s 10-year construction period.
The new airport, with a budget of for P735.6 billion for its development, is about three times larger than the capacity of the Ninoy Aquino International Airport.
After the franchise expires, the grantee should turn over the airport to the Department of Transportation.
After the construction period and during its franchise’s remaining term, it will be exempt only from income and property taxes until it has recouped its investments. After this, it will be subject to all taxes.
The franchise bill also exempts San Miguel Aerocity Inc. from all direct and indirect taxes and fees during its construction period.
Aside from taxes post-recovery of investment, the government also stands to share in its revenues more than its profit margin of 12 percent, the bill says.
Under the bill, the franchisee will also have “the right to construct, acquire, lease, operate or manage such properties that are convenient or essential to efficiently carry out objectives of the Act, such as toll roads, railroads, mass transport systems, hotels, warehouses, hangars, aircraft service stations and other facilities, as well as to develop the areas adjacent to the airport into one integral and comprehensive development, hereinafter collectively referred to as the Airport City.”
“All airport properties and facilities owned, maintained, operated or managed by the grantee, its successors or assignees, shall be operated and maintained at all times in the best, cautious, and diligent manner and in accordance with the standards, practices and procedures required by the Manual of Standards-Aerodromes,” the bill says.
Senator Christopher Go says the construction of the proposed Bulacan International Airport, with an expected capacity of 100 million passengers per year, will be an “economic game changer as it will bring more investments.”
He says the new airport will generate employment and provide a boost to the country’s economy.
“It will bring in jobs and economic opportunities outside Metro Manila and will provide livelihood to Filipinos especially those left jobless due to the pandemic,” Go said.
