Sangley International Airport

[Arianespace]

I've answered this question in 2016 and it seems nobody bothered to back read what I've said.

Arianespace wrote

Talks at DOTr suggest the new airport cannot be build in the next 10 years due to budgetary considerations. Then Tugade said other options are available at less price, Clark being the object. So he suggested to the President to extend instead the northrail to Clark because it terminates only in Malolos. And improve Clark which has been suffering a traffic decline. Clark is useless without the train. Our government is now talking to the Japanese for this extension. What is good about new northrail is it can accommodate both express and regular train services, including freight.  It sure does is cheaper than Sangley because infrastructure is already there. The question now is will the NLEX-SLEX connector hold volume for airport services? That should be a dilemma because its non-expandable.

So you see, If only you are taking particular attention to my post you would know exactly the sentiment of the government and the answer to your question. You could actually see them happening now.

[Arianespace]

The local government of Cavite obtained the green light from the Department of Transportation to undertake the proposed $9.3-billion Sangley airpot project.

“We just transmitted that we do not object to their proposal provided there are no government guarantees. The provincial government can now proceed.  It means there is no objection from the DOTr for them to implement the Sangley International Airport,” Transportation Undersecretary Ruben Reinoso said.

Reinoso said the  next step was to determine the legal framework for the project.  “It’s a go. So they now have to comply with the requirements for approval,” he said.

Reinoso said the proponent of the Sangley airport project should secure an endorsement from the  Philippine Reclamation Authority and approval from the National Economic and Development Authority board for the reclamation component.

Under the proposal, the provincial government of Cavite plans to reclaim about 1,500 hectares of land and to build an airport terminal that can accommodate 75 million passengers a year in Sangley Point.

http://manilastandard.net/business/biz-plus/271685/dotr-approves-cavite-s-proposed-sangley-airport.html

That was the easy part. Now the hard part. Do remember the limitations on funding investments by local governments in RA7160.

It made me smile while Tugade makes a clever move. Passing the ball to another. A polite way of saying yes but others said no. Brilliant.

Good Luck breaking the legal barrier.

You may want to read this first before asking questions.
http://www.ntrc.gov.ph/images/journal/j20130708a.pdf

[B77Wflyer]

Arianespace wrote

The local government of Cavite obtained the green light from the Department of Transportation to undertake the proposed $9.3-billion Sangley airpot project.

“We just transmitted that we do not object to their proposal provided there are no government guarantees. The provincial government can now proceed.  It means there is no objection from the DOTr for them to implement the Sangley International Airport,” Transportation Undersecretary Ruben Reinoso said.

Reinoso said the  next step was to determine the legal framework for the project.  “It’s a go. So they now have to comply with the requirements for approval,” he said.

Reinoso said the proponent of the Sangley airport project should secure an endorsement from the  Philippine Reclamation Authority and approval from the National Economic and Development Authority board for the reclamation component.

Under the proposal, the provincial government of Cavite plans to reclaim about 1,500 hectares of land and to build an airport terminal that can accommodate 75 million passengers a year in Sangley Point.

http://manilastandard.net/business/biz-plus/271685/dotr-approves-cavite-s-proposed-sangley-airport.html

That was the easy part. Now the hard part. Do remember the limitations on funding investments by local governments in RA7160.

It made me smile while Tugade makes a clever move. Passing the ball to another. A polite way of saying yes but others said no. Brilliant.

Good Luck breaking the legal barrier.

You may want to read this first before asking questions.
http://www.ntrc.gov.ph/images/journal/j20130708a.pdf

Considering Arthur Tugade previous position as President and CEO of the Clark Development Corporation. I'm not surprised that he prefer Clark City over Stangly Point as the next International Gateway Airport of the Philippines.

[Arianespace]

As I was saying:

The memo also noted that the Cavite provincial government had not identified the financing scheme for the more than half-a-trillion peso project.

“This office is of the view that PGC [provincial government of Cavite] lacks the technical capability to implement the proposed Sangley International Airport Project. As a matter of fact, the MOA itself is bereft of any provision or proof showing the technical capability of PGC,” the two-page memorandum stated.

“Likewise, this office noted the provision in the MOA relative to the proposed project’s financing scheme. It appears that the MOA has not yet identified with particularity the source of fund for the project,” it said.

“This office is of the opinion that the above description of the proposed project as well as the financing scheme is too general. Specific scope of the project and source of fund are required for this department to evaluate the MOA,” it said.

http://manilastandard.net/business/biz-plus/272847/dotr-s-legal-unit-rejects-p552-b-sangley-airport.html

[Arianespace]

Jarius Bondoc of the Philippine Star just made a sales pitch for SMC at his column. I did explained it in the previous page why it is so. Perhaps he did not have a clue yet.

(1) Waiver of payment in case government fails on commitments. It is standard for government justly to recompense the contractor for broken promises, like clearances and permits. So long as obligations are legal, government must comply or else pay damages. It is natural in all deals. Yet SMHC is being asked to drop its right.

(2) Waiver of recompense in case of change of laws. Similarly, contractors are entitled to recompense in case new game rules are set that drastically alter the project viability. Yet SMHC is being made to forgo its options.

(3) No rights-of-way. Government usually expropriates private land for public use, so long as justly compensated. In this case, SMHC is willing to pay for land that would be needed for access roads to the planned airport. Yet the DoF does not want to expropriate any land for use in the airport works.

(4) Drop any plans at the MIA while the Bulacan facility is being built. Part of SMHC’s proposal is to improve MIA aviation equipment, runways, and terminals preparatory to complementing by the Bulacan gateway. But the DoF wants to give such operations instead to seven taipans.

Read more at https://www.philstar.com/opinion/2018/08/31/1847308/obstacles-delaying-backup-manila-airport#ojkat0m8pjCDxZ1u.99

Keyword is NO GOVERNMENT GUARANTY, NO GOVERNMENT SUBSIDY.
Mahirap ba talaga intindihin to, o talaga lang ayaw intindihin?

And there is more to it. In the propose Concession Agreement SMC wants to incorporate NAIA improvement works, meaning they will be the one operating NAIA instead of it being subjected to swiss challenge as propose by NAIA consortium. Clever ey!

SMC really has plenty of explaining to do instead of paying journalists their version of the story and why government doesn't heed their way.

Meanwhile,

The provincial government of Cavite, with private developers, is offering to expand old Sangley air-naval base to the south. But it is legally debarred to borrow even just a portion of the $20 billion needed to reclaim land from the sea and build airport facilities.

Read more at https://www.philstar.com/opinion/2018/08/31/1847308/obstacles-delaying-backup-manila-airport#ojkat0m8pjCDxZ1u.99

I also told this forum why it can't be done.

Therefore, despite the Senate circus, MIAA expansion would move on, Clark would grow, and Sangley will expand. Whether SMC likes it or not.

Take it from Transportation Secretary Arthur Tugade himself,

“The idea of having multiple airports is something that the world’s biggest economies do. Ideally, there should be a train service linking these airports, which is also being pursued by the government. This complementation strategy was already part of the air transport roadmap from day one, and rest assured, that’s what we are going to do,”

 

[Arianespace]

It is a welcoming delight to hear other people validating what I just said in this thread few pages back about SMC airport. Its almost a year now. Exactly what I said.

Is the Bulacan airport doomed?

DEMAND AND SUPPLY

  Boo Chanco

When I brought up the question to Finance Secretary Sonny Dominguez last Friday, he said that as far as he is concerned the unsolicited proposal of San Miguel to build a world class airport in Bulacan is considered approved.

I told Sec. Sonny that was not the impression of San Miguel’s Ramon S. Ang when a group of journalists, including myself, had a long conversation with him last Thursday.

I told Sec. Sonny that Mr.  Ang told us they just received a discouraging list of conditions that DOF wants to incorporate in the concession agreement. We got the impression that Mr. Ang is worried the conditions will be seen as deal breakers by the financial institutions they have tapped.

For background, here is the list as earlier reported by Jarius Bondoc in his column which I slightly modified:

- Waiver of payment in case government fails on commitments. It is standard for government to justly compensate the contractor for broken promises, like clearances and permits. So long as obligations are legal, government must comply or else pay damages. It is natural in all deals. Yet SMHC is being asked to waive its right.

-Waiver of compensation in case of change of laws. Similarly, contractors are entitled to compensation in case new game rules are introduced that drastically alter the project viability in mid-stream. Yet SMHC is being made to forgo this right.

-No rights-of-way. Government usually expropriates private land for public use, so long as justly compensated. In this case, SMHC is willing to pay for land that would be needed for access roads to the planned airport. Yet the DOF does not want to expropriate any land the project needs.

-Drop San Miguel’s unsolicited proposal for the rehabilitation of NAIA. Apparently, San Miguel had an earlier unsolicited proposal sent to DOTr for the NAIA rehab. But MIAA gave original proponent status to a similar proposal of a group of conglomerates without first rejecting San Miguel’s prior proposal.

Mr. Ang didn’t say so, but I think this is not that important to them now except to point out they have been badly and maybe illegally treated by government.

When I asked Sec. Sonny for his reaction, he simply said they are just following the President’s instructions that the Bulacan airport proposal is approved provided there are no explicit or implied government guarantees. Sec. Sonny said the minutes of the NEDA Board meeting is their basis for sending those conditions.

I checked with NEDA Secretary Ernesto Pernia and his reply to my e-mail was: “PRRD couldn’t attend the NEDA Board meeting on the Bulacan airport. I chaired the meeting instead. The proposed airport was approved subject to the sorting out/clarification of remaining financial issues, the concession agreement, risk allocation matrix, and performance standards. There was no order or direction from PRRD.”

 Hmmm… what is going on here… Maybe the DOF conditions sent to DOTr expanded the definition of what constitutes guarantees. Indeed, Sec. Sonny appeared genuinely surprised at the San Miguel reaction and understanding of their conditions.

First of all, Sec. Sonny said once the government and San Miguel agree on terms in the concession agreement, it is binding on both. If government makes a commitment to do something, government will deliver.

Obtaining clearances and permits cannot be guaranteed however. There are rules in obtaining such things as environmental clearances. Neither DOF nor DOTr can guarantee the proposal won’t be rejected by DENR on environmental grounds.

Sec. Sonny also said that they cannot guarantee local government clearances and taxes. That is something San Miguel must deal with LGUs concerned.

As for right of way expropriation, Sec. Sonny said that, of course, government would help San Miguel because only government can expropriate property. After all, once finally approved, the airport also becomes a project of the administration.

Sec. Sonny also reminds San Miguel that the project is unsolicited and as such, does not enjoy the same privileges of solicited projects like the Mactan Airport Terminal 2.

The finance chief also wants to clarify who is the actual proponent because even if San Miguel is a large conglomerate with a balance sheet that can support it, San Miguel Holdings, the listed proponent doesn’t have the financial heft needed.

Government, Sec. Sonny said, also wants to know more details like the impact of the airport’s land traffic on existing road infrastructure, among other things. This is why the negotiations with DOTr, due to start any day now, should clarify all those points.

Sec. Sonny said in so many words that he would not stand in the way of building that airport but that he has the responsibility of protecting government’s interest. He said he doesn’t want a repeat of the MRT-3 deal with the Sobrepena Group which was so lopsided in favor of the private proponent and we are still suffering for it now.

San Miguel’s Bulacan airport proposal is the most advanced among proposals for a civilized international gateway. San Miguel plans to have four runways and a modern terminal  were a capacity for 100 million passengers a year. I think it should be approved and construction started.

Mr. Ang told us that if the airport project is shelved, he would just turn the 2,500-hectare property into a mixed use development in Bulacan. That part of the Greater Metro Manila Area had been left behind with most of the development happening South of the city.

I suggested to Sec. Sonny that they also start building the second runway at Clark and establish a protocol that will guide Clark airport officials on how to treat diverted flights. Passengers must not be kept in the aircraft for longer than an hour, must get CIQ clearance at Clark and transported by land to Manila.

If government has a two airport policy, they must make it operational at hindi sabi sabi lang.

Boo Chanco’s e-mail address is [e-mail]. Follow him on Twitter @boochanco


Read more at https://www.philstar.com/business/2018/09/05/1848651/bulacan-airport-doomed#s6iqkl21z84RVClo.99

The bombshell of course comes from congressman Pichay during this morning's congressional hearing. They just propose to earmarked 2.5-3 billion pesos for Clark parallel runway construction for 2019 budget.

Totally unprecedented but really makes a lot of sense.

[Arianespace]

This should be interesting read about Sangley.

Duterte wants Sangley airport in Cavite opened by November


Dismayed by flight delays at the Ninoy Aquino International Airport (NAIA), President Rodrigo Duterte wants the Sangley Point in Cavite to begin handling domestic flights by November.

Malacañang on Tuesday said Duterte gave the green light to Transportation Secretary Arthur Tugade's proposal to use Sangley Point during a Cabinet meeting on Monday.

[frequentflier]

Do you think its doable?

[Arianespace]

The runway extension and repair is already completed. They are building the terminal now which is possible to be ready by November. I think the unresolved problem now is the accessibility issue. The access road to the terminal is yet to be constructed.

[Arianespace]

Cebu Pacific is gonna be the first airline to use this airport.

[Arianespace]

Meanwhile In China, Cavite Government plans to build and operate Sangley International Airport suffered a major flaw after the governor wasn't able to answer the question raised by President Duterte in Beijing. Funding sources.

Remulla would have wanted funds from the Beijing's Belt and Road Initiative (BRI) as source of funding. In other words, Beijing grant.

Wrong answer.

The thing about BRI is that it is a foreign assisted loan, like KOICA or JICA assisted projects, and the Philippine government is the debtor. Sovereign Guarantee that is.

From that standpoint, Cavite government proposal is already inconsistent with the Philippines’ infrastructure and other development plans since it will ultimately be paying for the  project the province wants.

Meanwhile, BRI funded project like Manila-Bicol Railway, Subic-Clark Railway is already on the roll and they benefit the million public. They are implemented by DOTr.

The Sangley project would have Cavite as its sole beneficiary. See the difference?

The answer should have been more like SMC proposal for Bulacan airport, where the national government will not spend a single dime for its construction. It simply isn't. They were told numerous times by DOTr and NEDA to revise the offer. Make Chinese companies invest real money without guarantee of some sort.

If the government is bend on spending for this massive project, it would have taken Japan offer which is relatively cheaper than those offered by China. But it didn't. Remulla advisers should have known that clue already. Or maybe there is something I don't know yet.

By the way, any news from now that this Cavite plan is approved is false.

[Arianespace]

Arianespace wrote

Cebu Pacific is gonna be the first airline to use this airport.

And the statement made here a month ago has just been confirmed by Sec. Tugade this morning.  

[Arianespace]

This is how the Terminal looks like now





Not too shabby isn't it?

[Arianespace]

PTB Airside. Left: Pre-deparure. Right: Arrival


Pre-departure Area.  Originally designed to handle just 160 passengers, it is now upgraded to handle 200 passengers per hour.


Left: Arrival area, Right: Check-In Counter Area


Security Checks Area and the parking and drop area

[Arianespace]

Truly fast. Really fast.

[Arianespace]

DOTr sources disclosed today that Cavite government has no problem getting Sangley if they are not too ambitious. Like building a ONE RUNWAY international standard airport. And they might just be doing that.

[Solblanc]

Well, if DOTR approves it, it pretty much makes the case for closing NAIA. People in the southern provinces will have an airport in Sangley so they don't have to go all the way to Clark and Bulacan. And I can imagine all the land developers are drooling over more land being made available in the NAIA aerodrome.

[Evodesire]

Don't the NAIA consortium just want to throw their money on Sangley? Unless their primary purpose of developing NAIA is so they can build malls and condos.

[Arianespace]

Arianespace wrote

Cebu Pacific is gonna be the first airline to use this airport.

Like I said it would. Works like a charm. Everytime!

https://twitter.com/i/status/1189022724028432384

[XWB_flyer]

Curious if PR/2P have plans to operate flights at Stangley probably the reason why 5J/DG is first is due to them still operating turborprop aircraft at MNL while 2P moved theres Q400 to CRK?