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Sangley

Arianespace
Administrator
Solblanc wrote
Btw, any news on the Sangley Bidding? The last update in the DoTr website is from February

http://dotr.gov.ph/component/k2/item/570-sangley-airport-development-project.html

I couldn't find anything on if the bidding took place, or if the project was awarded
PRA is interfering on the project. They said its their call to reclaim Sangley. Actually the issue there is development and not reclamation. But apparently, they have other ideas. More likely connected with the ARRC. These two government agencies don't talk at all because the other has billion dollars on offer and I surmise PRA officers may be fired by DU30 soon. The EO to which PRA stand will be revoked soon. Just wait.
Making Sense
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Retort to Boo

Arianespace
Administrator
This post was updated on .

Execution problem

DEMAND AND SUPPLY
By Boo Chanco
I just came upon a memo dated April 11, 1995 jointly signed by then DTI sec. Rizalino Navarro and then finance secretary Roberto de Ocampo that suggested we should have had a new international airport at Clark 20 years ago. That’s right – two decades ago. That Navarro and de Ocampo memo was approved by FVR May 18, 1995.
...More specifically, the Navarro-de Ocampo memo established the policy as follows: 1) NAIA and Clark Airports would be developed simultaneously and 2) Clark Airport would be the country’s premier international airport in the medium to long terms.
The adoption of the dual airport policy decision was based by FVR Cabinet members on various studies (Mitsui, Aeroport de Paris, PCI, ADC, Changi Airport Services, BAA and ItalThai). Look at that… ka dami palang studies already and the P-Noy administration was ready to spend more money on a new study until their term mercifully ended....

http://www.philstar.com/business/2017/08/14/1728584/execution-problem
Nice read. But here is the real score back then.

Indeed FVR had a vision. He is more like Tugade only that his President. The plan was good at that time. Boo however failed to mention the most important thing that happen in 1997 or two years after that famous memo that crashed this dream. The thing where 24 pesos to a dollar suddenly becomes 57 pesos to a dollar.

If Boo knows how to compute, he could have spelled the difference between the two. By the way, that is also the cause of PAL's almost eventual demise.

The 1997 Philippine Transport Strategy Study (PTSS) otherwise known as the  "Medium Term Airport development Plan 1999-2004" sponsored by ADB calls for Clark development. This was the time where LCC doesn't exist just yet.

Actually, to be honest about it, its more like an envy of FVR to Malaysia's new Kuala Lumpur airport building to replace Subang. At the time of its opening in 1998, its 25m passenger terminal only handled 13 million, almost all of them coming from Subang traffic. It was only after AirAsia was born that the airport become productive. The difference between Malaysia and the Philippines however is money, they have lots of dollars and we have few to pay to its losses.


The adoption of FVR's dual airport policy is premised on one thing, the eventual operation of Clark as premiere airport. The plan however was flawed in so many things, like the railway. To build the airport is to build the railway like KLIA does. You cannot have the airport without the railway. And with pesos hovering 60 to a dollar, dreams of a grandeous airport and railway can sometimes defer to basic necessities such as food for the Filipino people like rice importation to feed the many. Erap elected the latter which is one good decision from him.

In fact, it took GMA 10 years to stabilize the foreign reserves depleted to almost zero in 2001. Aquino for all his flaws stabilize the peso that we can have $80b reserves equivalent to 7 months imports and paid up all our foreign debts to the IMF that was taken by Marcos. Now we have more money building non-productive airports.

Clark airport is dollar denominated loan, and so was the fucked up original northrail component that Boo mentioned at the time of JDV. Foreign reserves pay for the loans in dollars. If we don't have dollars we cannot pay dollar denominated loans. Had Clark airport been built then, we could be much poorer now. I would say its more of a blessing in disguise. Because at that time we really don't need it.

That is the reason why studies are updated to stay tuned with the times. Best example to be had is Davao airport which when built in 2003 was losing million dollars more than the projected estimate and it took the airport 10 years to correspond to projection which the study said it should be earning in 5 years time. And up to now the government is still paying for it that we cannot alter or modify it until its fully paid.

If that was a regular business, Davao airport could already be closed in 2005 for massive losses and yet politicians are calling for the creation of airport authority which will add losses more. Good thing losses are paid by the government. Its a painful experience that DOTC overhauled the system to be more efficient like the ones you see in Bacolod and Iloilo and lately Clark. But you cannot always find that in the news.

That is the same basic reason why an 8 million capacity LCC terminal at Clark was shut down by Pnoy in the first place and replaced with 3 million pax because it is so grandeous and a waste of taxpayer's money, considering that other airports in Laguindingan and the likes need the money more for capacity improvements.

The ADP terminal was premised on all the LCC operators transfer out of Manila to Clark. Good 7 million of them. That was fine except that the cost of landing at Clark is more expensive than say taking PAL.

So you see, its not about execution but thinking sensibly. Vince might argue otherwise but lets call spade a spade. And what they are building now is the 3 mppa terminal.

And then there was PPP that was so good on paper that sometimes you wonder why it didn't pushed through?

Well, you might thank DU30 or not for saving your pocket from excessive airport fees that airport operators are gonna collect from you. If you are one of those complaining for the P350 CAAP fees then you should expect to pay P500 or more from these supposed operators. To some its negligible but for the rest of us its huge amount.

Making Sense
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Re: Retort to Boo

Solblanc

On Sangley, it is sad that PRA has been blocking things. What's sadder is that PRA has always been pretty controversial. Either way, I don't see any reclamation works being part of what is supposed to be bid out.

The minute Sangley gets a Passenger Terminal Building, I predict that growth will spike up in that airport, even with a short runway.

As for Boo Chanco complaining about Clark, well, they had to do something when they kicked out the US bases. Those bases generated economic activity, and there had to be some sort of plan to replace it.

Which makes one thing, what if Marcos built two parallel runways in NAIA? We could definitely make do with that. Or, what if we didn't push through with building T2 and T3, and moved to Sangley right away, when it was proposed in Cory's time?

I guess we just got used to NAIA's convenience of being right there in the middle of the city.

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Re: Retort to Boo

Arianespace
Administrator
Solblanc wrote
Which makes one thing, what if Marcos built two parallel runways in NAIA? We could definitely make do with that. Or, what if we didn't push through with building T2 and T3, and moved to Sangley right away, when it was proposed in Cory's time?
NAIA actually has provisions for 2nd parallel runway defined under the 1973 MIA Development Project (MIADP) Masterplan. The Swiss-based consulting engineers allocated the parallel runway between MIASCOR all the way to Libingan ng mga Bayani boundary. AFP-RSBS Industrial Park was part of that runway. They are all government lands. They were supposed to be expansion areas. It was all lost in 1993 when FVR wanted Clark to be the next gateway.

In 1973 however, MNL doesn't need that because it already has two intersecting runways capable of handling 30 million passengers. You see, we are way ahead of our time handling barely a million passengers at this time.

At the time terminal 1 (International terminal) opened in 1981, the passengers that used it was barely 2 million from the 4.5 capacity designs. It was only in 1985 that it breached the 3 million mark and 1991 that it reached capacity, 10 years after it was completed. Also in 1985 we only have 5 million domestic and international passengers.

In 1995, we only have a total of 10.5 million passengers (6.5m int., 4m dom). Note that 10 million from the 30 million runway capacity earlier stated and the plan of El tabaco to move to Clark following Malaysia's drive to move out of Subang.

After that time, Skyway and C5 was cleared for construction as what you can see now.

Sangley was never there in the plan because of Clark and Clark was useless in 1993 anyway so decision ain't hard for FVR. In fact, Gordon-ran Subic airport is more productive than Clark at that time.
Making Sense
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Retort to Boo

Arianespace
Administrator
By the way, NAIA's parallel runway idea originally came from  Airways Engineering Corporation's main man, Rufus Phillips, the same person famous for "Why Vietnam Matters". Detailed engineering works were however prepared by Renardet.

Phillips was also the author of the book "Maintenance of Adequate Airport System", published in 1967, the precursor of Saigon's parallel runway design and that of Manila amidst constricted space. That famous runway parallel design can now be found at Dubai airport.

While Saigon was built, Manila never materializes as previously explained. All because of series of events, unfortunate or not.

NAIA's version of parallel runway never pushes through because there was no need to do so. Unlike Saigon, all US military traffic used Clark while civilian traffic uses Manila. And when its finally time to expand in 1992, the decision was made to make it to Clark.

The Philippines first parallel runway construction was made in 1991 to address growing military traffic courtesy of the US military which they were never able to used fully because they were kicked out later in September.

For history buffs, Tan Son Nhut Airport was the biggest US air base in Asia and was the second busiest airport in the world in 1969 following Chicago O hare, with a mix of civilian and military air traffic.

Clark airport grew what it is today only in 1975 after the fall of Vietnam. Although it is the biggest US military facility outside of America, its airport activity was however minuscule compared to Saigon.  



Making Sense
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Re: Retort to Boo

Solblanc
So, PAL is publicizing its proposal for an expansion of T2. I guess this means that the planned reconfiguration of the NAIA terminals isn't panning out?

Also, does this mean that NAIA will get a new runway?

Maybe it would be easier to expropriate Merville and Bicutan and just add capacity there.
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Retort to Boo

Arianespace
Administrator
What re-configuration plan? There was none paper-wise.

What was said is merely an expressed opinion nothing short of a plan. The person who said it can't even figure how to address terminal shortfall. And yet they made the news.

Terminal 2 has been discussed in this thread previously and the cause of expansion delay was in fact answered. PAL expanding T2 has been there ever since predating the apron construction. In fact, they should have been constructed together. Its not a novel idea floated recently.

The parallel runway option is still there while planners are debating Terminal 5 construction or T3 expansion. Maybe you can take your pick whichever comes out. Because right now they are not yet cast in stone.
Making Sense
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Terminal 2 Expansion

Arianespace
Administrator
ONE OF THE WHY?

PAGCOR raises legal issues on PAL lease contract covering Nayong Pilipino property


The Philippine Amusement and Gaming Corp. (PAGCOR) on Tuesday raised legal issues regarding the lease contract to a sizeable piece of land it entered into with flag carrier Philippine Airlines (PAL).

PAGCOR said it reviewed the lease contract with PAL and found out that it was "not yet the absolute and registered owner of the property."

"Therefore, since PAGCOR has no absolute authority to lease out the property, PAL does not acquire any right to the possession or enjoyment thereof, notwithstanding the contract of lease executed between the two parties," the gaming regulator said in a statement.

Last week, PAL president Jaime Bautista told the Management Association of the Philippines the airline had proposed to build a P20-billion passenger terminal at the former Nayong Pilipino complex.

"PAGCOR has already requested an opinion recommendation from the Office of the Solicitor General regarding this matter," the gaming regulator said.

The property was sold by the Philippine Reclamation Authority to PAGCOR by virtue of a contract to sell on May 12, 2009.

According to PAGCOR, its previous management leased 10 hectares of the 15-hectare land to PAL under a term contract that will expire on July 11, 2033. The gaming regulator said the airline pays only P40 per square meter in monthly rent for the property.

"Upon the current PAGCOR's management's review of the lease contract with PAL, it was revealed that 'the lessor is not yet the absolute and registered owner of the property'," it added.

"The previous board caused the acceptance of P21,000,000.00 as down payment from PAL but later issued an order to PAGCOR's treasury department not to accept the lease payments from PAL," the gaming regulator said.

"This led the present PAGCOR board to look deeply into the lease contract. It found that the lease price of P40 per square meter is grossly disadvantageous to the government," it said.

"As stipulated in the contract, PAL will use the rented property as 'an aircraft parking ramp/apron facility'. Hence, it is prohibited from using the leased premises for any other business or purpose, including the construction of a new terminal, without prior written consent from PAGCOR," the regulator said.

"The ultimate aim of PAGCOR's current management is to ensure that all dealings entered into by the agency will be advantageous to the government," the gaming regulator said.

In a separate statement last week, the Manila International Airport Authority said the proposal by PAL can be explored but the progress of any discussion on the matter would be remote because the property is embroiled in a long standing legal case.

As of this posting, GMA News Online has not received a reply from PAL officials after requesting for a comment on this development. — Ted Cordero/VDS, GMA News
Making Sense
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Re: Terminal 2 Expansion

Solblanc
http://www.philstar.com:8080/business/2017/10/27/1753123/smcs-p700-b-bulacan-airport-proposal-neda-boards-deliberation

MANILA, Philippines — San Miguel Corp.'s proposal to build a new international airport in Bulacan worth P700 billion is now up for deliberation of the National Economic and Development Authority board.

This was confirmed by Transportation Secretary Secretary Arthur Tugade on Friday, saying his department examined and approved SMC's unsolicited proposal.

"Last week, we forwarded to NEDA...not for approval, for deliberation," Tugade told reporters during the Philippine Aviation Day on Friday.

=====================================

Tinapon sa NEDA. But paperwork-wise, the SMC proposal is ahead. What are the chances of NEDA saying yes to this?

I mean, MRT-7, for example, was languishing in NEDA for the longest time. Then SMC came into the picture.

Let's say that NEDA says yes. And SMC has to abide by the condition that it cannot force airlines to transfer. What are the chances that they can make this airport work? For people in QC, Bulacan is a no-brainer, and much more accessible. For the people in Makati, however, NAIA is still more convenient.

We'll have a true dual-airport system in that regard. But if this pushes through, Clark is dead.

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Bulacan Airport

Arianespace
Administrator
Probably No. Why the probability? NEDA still has to make that decision.

What was approved was the proposal to build. But it was merely the tip of the iceberg that would sink that dream. Why the tip? Because the TOR of that proposal would sink it to the ground before it can even fly.

Perhaps you are wondering why the need for government consent?

Among other concerns, these are the most disturbing:

Other than planning permissions and associated permits, building conditions require investor warranty of ROI and that means traffic support. Which means it needs to have diverted traffic. Overflow traffic isn't bad. What is a NO-NO is enforced diversions. Foul na kaagad yan

Second, international bank lenders require sovereign guaranty of project in that magnitude. It always does, which basically defeat the purpose of the mode of its construction. It is also becoming more similar to the proposal for the development of Clark made by a foreign middle eastern investor premise on sovereign guaranty and minimum traffic conditions support. Also a NO-NO.

Third, airport building is premise on government land ownership. It is only when land ownership is settled that airport construction and operation is awarded. The City of Paranaque vs. MIAA case should be a good read. Also, the MRT mistake already proved a tough lesson for DOTC.

Of course, SMC can own and operate an airport privately like what Balesin and El Nido is doing. But SMC cannot say go there and land. Lallo and San Fernando thought that way and failed miserably. If that is not the case then SMC should be building an airport already.

 There's the rub.  
Making Sense
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Re: Bulacan Airport

Gwapogi1592
Why do I sense that feeling SMC’s execution on this project will be palpak? If they build this, Clark is no more. And what if the down the road they need to expand the airport, are we going to end up with a NAIA 2.0? Hayys, si SMC puro push push sa mga projects para may increase sa stocks nila pero. Mamaya, cancel agad yung project. The Government should build and operate the airport NOT private companies.
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Bulacan Airport

Arianespace
Administrator
Something to ponder


Be wary of private-run airports – IATA


De Juniac advised the government to make the necessary investment decision now and see to it that the new airport would have the capacity, quality, and affordability.

He cautioned against relying too much on privatization, noting the sad experience of the air carriers for private-funded airports.

Privately run airports, whose goal is to maximize profit, jettison the concept of service once in control. They increase rents and other onerous forms of income generating activities.
Making Sense
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Bulacan Airport

Arianespace
Administrator
Du30 airport policy made clearer now.

Two rail system for Clark-NAIA are now bared in the open. One regular, one hi speed. One made by China and one made by Japan. And it will just take you 30 minutes. That is super fast. Its not yet in the news but it already gives you an indication about airport policy direction in the next 6 years. Unfortunately, No Bulacan airport in the equation. So I guess that settles it.

By the way, PDI jump the gun and made the story all wrong.

The Department of Transportation (DOTr) wishes to clarify a report posted by the Philippine Daily Inquirer (PDI) today, November 8, entitled “New railway to link Manila, Clark”, which erroneously tagged China National Machinery Corp. (SINOMACH) as the contractor of the PNR Manila – Clark Railway Project.

The PNR Manila-Clark Railway Project will be funded by the Government of Japan through the Japan International Cooperation Agency (JICA). The bidding for the contractor of the project has not started yet, contrary to what the article stated that China's SINOMACH will be its contractor.

PDI might have confused the PNR Manila-Clark Project to the defunct Northrail Project, the contractor of which was SINOMACH, and was the subject of a recent out-of-court settlement, ending years of arbitration proceedings. The Northrail Project, which was planned to run from Caloocan to Malolos, is entirely different from the PNR Manila-Clark Project, which will run from Tutuban all the way to Clark.

The article also incorrectly reported that the "project initially costs P150 billion.” Phase 1 (Tutuban – Malolos) of the PNR Manila-Clark Project costs PhP105-Billion, while Phase 2 (Malolos – Clark) costs PhP211-Billion.

Target groundbreaking for Phase 1 is in December 2017, or first quarter of 2018 at the latest. Phase 2 will start construction by first quarter of 2019.
Making Sense
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Bulacan Airport

Arianespace
Administrator
In reply to this post by Arianespace
Ernesto Pernia of NEDA just echoed yesterday what I said in this forum previously.

Its like telling them bluntly, build but don't ask.
Making Sense
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Re: Bulacan Airport

Solblanc

If they had the balls to just build already, it would make the process a lot faster. It's their land, after all :D
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Bulacan Airport

Arianespace
Administrator
Some bad news at the ICC yesterday. It just re-echoed my previous sentiments posted earlier.

1. No subsidy
2. No guarantee
3. No flight allocation

Pretty bad if your SMC. They have a tax break though. That is a good start for building an airport. Now the ROI...

You must be wondering why there is no "swiss challenge" proposal. For one, the land where the airport is to be build is private property. Unlike NAIA or Caticlan where the government owns the land, here the property belongs to them. That basically defeat the purpose of the challenge.
Making Sense
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Re: Bulacan Airport

Solblanc

Well, will they even attempt to build an airstrip with those conditions?

If they build something, definitely it will attract some spillover traffics.  But will it be enough?

Which reminds me, London has so many spillover airports, but not all of them make money
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Re: Bulacan Airport

chowpau
Solblanc wrote
Well, will they even attempt to build an airstrip with those conditions?

If they build something, definitely it will attract some spillover traffics.  But will it be enough?

Which reminds me, London has so many spillover airports, but not all of them make money
It would still require a swiss challenge but on the land of SMC where the airport would be built
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Bulacan Airport

Arianespace
Administrator
Undersecretary Rolando G. Tungpalan said that in its meeting last Thursday, the Neda Investment Coordination Committee (ICC) technical board had sought further analysis and review of the project’s financial component.

Tungpalan said it was part of Neda’s “usual due diligence” on unsolicited project proposals.
Tungpalan earlier said the Neda ICC would decide early this month whether or not it would approve SMC’s proposed “aerotropolis.”

Tungpalan had said certain assumptions vital to reaching a decision had to be amplified, such as the project’s revenue sources.

“As you know, if it’s an unsolicited project, the reasonable rate of return will be a parameter for a Swiss challenge,” Tungpalan had explained.


Read more: http://business.inquirer.net/244087/smc-asked-provide-financial-details-p700-b-airport-plan#ixzz54HFxrEDD 
Works like a charm, and they are not talking about the land just yet. Still plenty of information in store. Just holding my horses at this time as not to spoil the party.
 
Making Sense
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Re:

maortega15
Just out curiosity, would it be feasible for Manila to have two airports with one being for LCCs similar to Don Mueang in Bangkok especially with the rise of LCCs? Cebu has the potential to be much bigger, the airport issue in my opinion is the one hampering their growth. Same with PAL.

Or better to keep everything under one airport complex if not one terminal?
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