To have that fact in perspective, SMC never had Caticlan Airport project in the beginning. Management contract was owned by Yang family, particularly George T. Yang, owner of McDonalds in the Philippines, and his associates Rafael P. Puno, Lino A. Barte, and RPRP Ventures Management and Development Corp.
I was telling the other forum about these things before but I guess nobody bothered to read it so I am telling it again.
The
management plan was to improve the existing terminal building, extend and widen the runway, build a new passenger terminal building, vehicular parking area and other facilities with a price tag of ₱2.5 billion for the whole project. Not for the PTBs alone as was later on claimed by SMC. Projected expenses turns out to be more. A billion more.
The award which costs Yang ₱2.5 billion as development expenses entail two stages, as proposed on their bid documents: the construction of a new ₱2.1-billion passenger terminal in the first stage, and the extension of the existing runway from 950 meters (3,120 ft) to 2,100 meters (6,900 ft) as well as upgrading airport equipment and the existing apron, which would cost ₱360 million. It turns out Yang was too ambitious with his projections as depression hits the economy in 2009 affecting his business. He had no choice but sell its stake.
Yang was expected to add another floor to the one-storey terminal building and flatten out an adjacent hill, which will involve moving 350,000 cubic meters of soil. Never happened. It was SMC that does the job. The CIADC was also expected to build fences around the airport, upgrade the fire station and fit the facility with new navigational aids. Did not also happen as SMC bought these equipment.
The next phase, now done by SMC, extended and widen the runway to what it is today, cost another billion from the proposed ₱360 million. Of which billion was supposed to finance a new two-storey terminal building which was built according to SMC projections of international operations. It turns out the expenses for airside operations was closing the 2b mark even without the new PTB in place.
The final phase, which is about this year, includes further extension and widening of the runway towards the sea, which will never happen as DENR denied permit for its construction due to environmental concerns.
If you take a look at the 25 years concession agreement, their was never a word mentioning it as an "international airport". Only the company operating it was. Because the "gateway" airport is in "Kalibo". Not in Caticlan. Which means it remains to be a domestic airport. Services to "international destinations" was mere propaganda, as DOTr and CAAP never meant it to be one.
Knowing these mistakes to their bid and their difficult financial position, CIADC sold their interest to SMC's Trans Aire without telling them the restrictions much to their delight. And then SMC pursued the same strategy to make it "international" which they realized later on was never part of the concession. Their attempt to modify the contract during Pnoy time failed. And so their PTB construction hit the wall, as it will cost them a billion more, with the hopes on them bagging the amendments. Still, It never happened during Tugade's time. What you see now is the temporary PTB warehouse.
Also what they have now is a provisional permit granted by JJB in 2022, allowing them to fly special international flights which is time-limited. Not regular flights. This is the reason you find pre-cleared flights from China and Taiwan. But it doesn't mean the concession was amended. Its the same CA approved in 2009. It still is a domestic airport, as clearly known nowadays as "Boracay Airport."
So you just have the protruding modular steel beams now which is supposed to accommodate 5mppa and is supposed to be completed on the 15th year, which is today, but is nowhere close to it. Even without covid they won't still reach this number now. Probably in the next 5 years which is its 20th year out of the 25.
So you see, this really was a loss investment for SMC. They were supposed to rake in profit at this time but Trans Aire is still operating at a loss. Thus, deferment of compulsory expense, which is completion of PTB. That is why they make sure to win NAIA contract so that they can divert excess traffic by the time new MNL opens in 2028, which would otherwise be impossible to happen if other operators had won and decided to keep excess traffic at NAIA.
Making Sense
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