Department of Transportation (DOTr) Secretary Arthur Tugade confirmed that the San Miguel Corporation (SMC) needs to coordinate with the Department of Finance (DOF).
He said that the latter is attempting to make specific provisions on the agreement regarding the Bulacan airport clear.
To achieve this end, the DOF intends to engage with the SMC. In this manner, it would get to safeguard the interest of the government, Tugade explained.
The DOTr official stressed that the DOF is not requesting to revise the bilateral agreement between his department and the Ramon Ang-led firm.
Tugade relayed that the DOTr and the SMC inked the airport deal. Hence, both parties have to engage with the document, he added.
This situation should happen if clarifications and modifications on the contract become needed, he remarked.
Ruben Reinoso is the DOTr’s undersecretary for planning and project development. He sought to explain further the matters that need fixing between the SMC and the DOF.
Reinoso pointed to the joint and several undertakings provision that the SMC’s holdings corporation San Miguel Holdings Corporation released.
The DOTR undersecretary remarked that the DOF wants these issues clarified by the proponent of the Bulacan airport initiative.
Reinoso cited that the San Miguel Holdings Corporation issued the joint and several undertakings document because it is not capable of funding the project by itself.
The reason behind this matter is because the net worth of the San Miguel Holdings Corporation cannot give the equity for the forthcoming airport, he said.
Reinoso mentioned that the DOF is not just after the equity factor.
He said that the government department also wants to have the parent corporation becoming jointly and severally liable to the responsibilities of SMC.
Therefore, he said that, as a component of the DOTR, they need to coordinate this issue with the SMC being the airport initiative’s proponent.
Philippine daily newspaper The Philippine Star reported that the groundbreaking ceremony for the new airport in Bulakan, Bulacan can already start anytime, as per Reinoso.
The DOTr undersecretary cited that this development includes the assumption that the financiers of SMC would feel convenient in issuing the funding for the initiative.
This scenario is even if Ang’s firm still needs to address some clarifications with the DOF. The upcoming airport in Bulacan will be known as the New Manila International Airport.
By 2025, its developers expect its full completion to take place. Moreover, the new province-based facility will occupy a property that measures 2,400 hectares.
It will feature three terminals. Furthermore, this airport will consist of eight taxiways. Airport customers will get to use its four runways as well.
In one year, the Bulacan airport project would reportedly be capable of handling up to 100 million airport customers.
Aside from building it, SMC will finance, design, and manage the operations of the upcoming global gateway.
The Bulacan airport initiative is reportedly worth $15 billion to build.
On Wednesday, February 26, 2020, San Miguel Corporation (PSE: SMC) closed at P130.00.
This last trade price of the company’s stock is down by 2.40 or 1.81 percent. Besides, the total value reached P39,101,028.00.
The Philippine Stock Exchange recorded SMC’s 52-week high at P195.90. Meanwhile, the company’s 52-week low is at P120.00.