Sangley International Airport

[idp5601]

What is this catch, exactly? The fact that T1 can't be demolished?

[maortega15]

idp5601 wrote

What is this catch, exactly? The fact that T1 can't be demolished?

Some law called the Cultural Heritage Act (RA10066)

[idp5601]

If that was the case, then why can't they just turn T1 into a museum or something, should NAIA be closed down?

[Arianespace]

Arianespace wrote

All Asia Resources does not owned Sangley Airport nor does it have rights to develop it as such. Its just sad that nobody is mentioning the basic question.

I was talking about this last month. DOTr has spoken. As I was saying all along.

This should be a MUST READ for this thread.

Unsolicited proposals find no favor with govt 

BY REICELENE JOY IGNACIO       

Sangley consortium, Chelsea Logistics’ airport offers rejected
Two more unsolicited airport development proposals—one of them from a businessman said to be close to President Rodrigo Duterte—have been turned down by the Transportation department.

Along with the rejection of Aboitiz Equity Ventures’ (AEV) P148- billion bid to upgrade and run the Iloilo, Bacolod-Silay, Laguindingan and New Bohol airports, the department last month also ruled against Chelsea Logistics’ P67-billion bid for the Davao and Bohol airports and the Sangley Airport Infrastructure Group’s $12-billion plan to develop an alternative to Metro Manila’s Ninoy Aquino International Airport (NAIA), documents obtained by The Manila Times show.

Chelsea, owned by Davao-based businessman Dennis Uy, was seen as having gained an advantage after the rejection of AEV’s proposal, which the holding firm disclosed last week. The Sangley consortium’s offer, meanwhile, has been viewed as going up against San Miguel Corp.’s P700-billion plan to build a NAIA alternative in Bulacan, which has already received the endorsement of the National Economic and Development Authority.

Public bidding preferred
The Transportation department, in letters dated March 27, said it was pursuing a policy of offering projects for public bidding. Chelsea Logistics and the Sangley consortium, however, were still welcome to participate once projects are rolled out.


In the letter to Sangley consortium President and CEO Wilson Tieng, Transportation Assistant Secretary Airene Robinson said that “should the government pursue the Sangley Airport Development project, it will be implemented using its own resources, thus cannot accept your unsolicited proposal.”

“In view of this, you may retrieve all the submitted documents of your proposal … Notwithstanding the above, the government reserves the right to publicly solicit bids for the develop of the Sangley International Airport and all qualified interested entities will be invited to participate and submit bids,” it added.

The Sangley Airport Infrastructure Group is a consortium formed by the Tieng-owned All-Asia Resources and Reclamation Corp. and Sy-owned Belle Corp., which aims to develop an airport in Cavite — to be named the Philippine Sangley International Airport (PSIA) – “at no cost to the government”.

The consortium, which was looking to secure a 50-year concession, had said it would build a world-class “aerotropolis” via the reclamation of about 2,500 hectares of land from Manila Bay in addition to the development of the existing Danilo Atienza Air Base in Cavite.

With regard to Chelsea Logistics’ offer, Robinson’s letter to the company’s President and CEO, Chryss Alfonsos Damuy stated that the Transportation department had “adopted a policy to competitively bid out the O&M (operation and maintenance) of airports under government jurisdiction through a concession, particularly those airports that are deemed to exhibit viability, and thus, will no longer process your unsolicited proposal.”

[idp5601]

So this basically means if Sangley were to be delevoped, it would either be through an ODA or be bid out?

What does this mean for Bulacan? Is it dead in the water as well?

[Solblanc]

idp5601 wrote

So this basically means if Sangley were to be delevoped, it would either be through an ODA or be bid out?

What does this mean for Bulacan? Is it dead in the water as well?

Bulacan is a bit of a weird case. Basically, the government already told them that their project cannot have any support whatsoever. If it gets approved, it just means that RSA is allowed to build whatever he wants in that area. He can't force NAIA to close. He can't force a relocation of airlines. He can't ask the government to build trains or expressways to his airport.

Now, seeing what SMC is doing in Caticlan, do you think that, even with approval, he'll go on and build something knowing that he has to steal air traffic from both Manila and Clark?

To be fair, a Bulacan airport can attract foreign carriers that have been looking to start or expand NAIA service but have been shut out due to the lack of slots. Bulacan would be a magnet for EK A380s or for the likes of Air New Zealand, which is still trying to find good NAIA slots.

Bulacan is in theory possible, but it will only be as successful as how much cash SMC is willing to throw at it in the short-term. And they're also having problems with that, too.

[Arianespace]

You are confused.

Official Development Assistance (ODA) is always public bidding. Only that the contractors that bid from it comes from the "Grantee State."

There is no ODA on private property. It is always public property under the "Regalian doctrine". Sangley airport has always been public property and so does Clark.

Proposed Bulacan airport is private airport. And so does Balesin if you know where it is. If you care to look back at the threads in this forum I did mentioned why they would fail as Solblanc pointed out. Mind you i disclosed this months ahead before breaking on print.

Arianespace wrote

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.

[Arianespace]

For the information of everybody, ODA funded projects are always initiated by the national government through DOTr. Loan is guaranteed by the Government of the Philippines through the DOF. It is never being done by any local government or any of its apparent partner. Take Laguindingan as your example. You also need to be aware that Sangley airport is not own by Cavite.  It is only situated in Cavite. Take note of that.

Also, a swiss challenge require first and foremost that everything else is being equal. It is a matter of fact that there is yet no statement on the approval of the SMC plan. What is being approved is for it to be deliberated at the executive level unlike some spin that is floated around.

You should be aware that there are plenty of projects that doesn't find the light of day at this level. The 3rd ADB airport project would be a good example to as current as NAIA expansion project which reached to that level in the previous administration. It still not approve until now.

[idp5601]

If (or rather, when) the government decides to build Sangley by itself, will they stick to the JICA recommendations or will there be some modifications to it, slight or major? If I recall correctly the original plan was to keep NAIA open while Sangley would be built to handle about 50-60 million pax after construction is completed, but it seems like there's been a slight change of plans regarding NAIA's ffate once the new airport is fully operational.

[Arianespace]

There is no change of plan as to the fate of NAIA, as was the fate of the old MIA. It will eventually become a business district.

If you read the first page of this thread it was explained there. There are lots of "tidbits" of information also at the airlines thread about this project that is shared in this forum that is way ahead of its time if you care to read. Minor details may shift a little bit upon implementation but you know already how it is going to be. We may have to go back to this post 10-20 years from now and see that indeed it was substantially the same.

[idp5601]

Ah ok.

Do you know anything about the Cavite government's plan to develop Sangley Airport with the PRA? Is that separate from the national government's ODA plan or are they the same?

Also, do you have any idea how this project fits in the grand scheme of things, Sangley-wise?

[Arianespace]

You already read the answer above. PRA is involve in reclamation works while DOTr involves airport construction. Note the difference. They are not the same although they are the same government agency. PRA does not build airport nor does it build seaport which belong to the PPA. Don't also be confused by the GMA issued EO about Sangley because the authority covers only reclamation works and that does not extend to airport building. Some wise guys would think they do and get burned in the end.

Like I said in the earlier posts, care to read back because the answer to your second question is actually being discussed a long time ago. Our discussion won't move forward on repetitive questions already answered.

[Arianespace]

By the way, before discussion goes out of hand GMA's EO. 629 covers only the reclamation of Bacoor and Cañacao Bays if you know where that is. Some enterprising fellowmen interpreted it to mean Manila Bay. Excuse me, they are different animals. No wonder they got burned just because it state an airport.

And one last thing, the naval base is never under the jurisdiction of the local government of Cavite. They are  under DND while LGU is DILG if you want to saw more confusion. Can you now see the flaws?

[Arianespace]

Another collar for the same dog. And the spin continues...

 
DoTr studying Cavite province proposal for Sangley airport

THE Department of Transportation (DoTr) said it is considering a proposal by the Cavite provincial government to develop an airport in Sangley Point.

Undersecretary Ruben S Reinoso, Jr said that the agency is considering the Cavite proposal, adding that by considering the new proposal an earlier proposal by the Sangley Airport Infrastructure Group, Inc. (SAIG) is not deemed rejected, contrary to reports, as the department still has the option to consider its proposal if the Cavite proposal is rejected.

It was earlier reported that the DoTr had rejected the SAIG proposal, a consortium run by Solar Group’s Wilson Y. Tieng and the SM group’s Henry T. Sy, Sr. “We rejected the unsolicited proposal for Sangley Airport since government is considering the (Cavite proposal)… to develop the Sangley Airport as a government undertaking (by the province of Cavite) in collaboration with the Philippine Reclamation Authority (PRA), Civil Aviation Authority of the Philippines (CAAP) and DoTr,” Mr. Reinoso said in a message.

So you see, even Usec. Reinoso is playing politics to idiocy. That's the problem when you really don't know what the word is.

"Government undertaking" as posted in the Manila Times article is simply meant the "Government of the Philippines", not DOTr or CAAP which are merely GOP's instrumentality, nor the government of Sangley which is merely an LGU. Otherwise, you wont need NEDA for that. And now he is saying that he was misquoted in the article.

Truly, stupidity is the deliberate cultivation of ignorance.

And while at it, tell me if any of this project is indeed inside Bacoor and Cañacao Bays?

[idp5601]

So I checked what EO 629 had to say and see if PRA was really only restricted TO Bacoor and Cañacao, and it says this:

WHEREAS, one of the major infrastructure projects that is necessary is the provision of an international container port complex that would include an airport and seaport in Sangley Point, Cavite City which would maximize the economic utility of the R-1 Expressway Extension now undergoing construction;

WHEREAS, the viability of the Project to a large extent will be enhanced by the enabling reclamatin in the portions of Bacoor and Cañacao Bays to provide a significant expansion district to the limited land area of Cavite City;

I may be missing something, but there is nothing here mentioning Bacoor and Cañacao Bay as the only place the PRA can extract land from. The word 'enhanced' is used, which seems to suggest that the reclamation for the ports will be somewhere else, with the land extraction in said bays for augmentation of the existing land area of Cavite (not necessarily for usage for the Sangley project).

[idp5601]

Some news regarding Bulacan...
Looks like tomorrow will be Judgement Day for the project, as it will be discussed in the NEDA Board meeting happening on that day.
https://www.philstar.com/business/2018/04/24/1808722/neda-takes-smc-airport-plan-tomorrow

[idp5601]

The NEDA Board has just approved the Bulacan Airport project (subject to final review of concession agreement), and will undergo a Swiss challenge.

That's odd - I do recall @Arianespace being adamant that there was not going to be a Swiss challenge.

Also, a question: is it legally possible for the government, at any point, to decide to allocate/move all flights in and out of NAIA to Bulacan?

[Solblanc]

Government has the power to close NAIA and have airlines choose whichever airport left there is to fly out of. But why would they?

[Arianespace]

Well, according to ICC inside sources, The oddity stopped when SMC offered their land as part of the offer in the concession agreement according to pre-stated valuation. They earlier dropped certain conditions prior to ICC meeting which I mentioned earlier. Meaning, should another bidder wins, they should surrender the land where the airport is to be built under the propose BOT warranting the President's approval. Fair enough. (I should have asked this earlier instead of asking clarification afterwards like the Kuwait Saga)

There was also this another issue which DU30 overruled because it can be threshed out in the propose concession agreement (CA). (This is where eligibilty, financial capacity, and technical capability comes in). DOF has issues which was the basis of my comment. I was really expecting its rejection following protocol. But the President has spoken. Well, he could be right as it is his investment policy after all. Not mine or that of his Finance Minister.

Contract negotiation is however a different thing as this is where it gets ugly, ie NAIA 3 project fiasco comes to mind. And it also involves no competition clause for x number of years, meaning no new airport construction within the Metro, so technically, no Sangley mega airport project for a while. Also fair proposition. It gets its traffic from the excess capacity of NAIA, also to be determined by the CA. I don't know yet how this affect the NAIA upgrade project with proposed concession period max out at less than 20 years. I may have to ask again.

If all is well, the contract is approve for comparative bid (Swiss Challenge). Meaning, this is where SMC lays down all their cards for other comparative bidders to see and bid better terms than the approve contract, with option to match the better offer. If SMC match the better offer then Notice of Award is issued. Otherwise, if SMC fails in contract negotiation there will be no comparative bid to follow. Then government attention goes to Sangley.

The approve contract is the most interesting part for airport building and its not there yet. In simple terms following a house building, we just saw the plan for the house approved not the contract for the building of a house. We should see the light of day next year. Until then I will keep my smile.

So you see, Approval doesn't mean award. They are two different things. I will grow old watching this go by.

[idp5601]

So if I'm reading this correctly:

1. Bulacan will now have flight allocations
2. NAIA will continue to be used after the new airport is opened
3. There will be no other new big airport projects in and around the Metro for the next few years, if SMC win the bid
4. If SMC fail to match the better offer in the Swiss challenge, the project will not go through

And speaking of NAIA's rehabilitation, is there any update regarding the proposals?