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TNE NATION'S ITAIDING NEWSPAPER
Tuesday, Juhe 18,2019
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TEryEINANCE Secretary Sonny
Eoominguez did the c"ountry a
I*d[
f, X favor scrutinizing San Miguel
-&- Holdings Corp.'s (SMHC) Bu-
lacan Airport projept. He explained in
Senate hearing September last year that
the DOF had backed rather than blocked
$_MHC's unsolicited proposal to build a
new international airport in Buiacan. The
'DOF support and the National
Economic
and Development Authority (NEDA) ap-
proval set in motion the Swiss Challengd
jn April this year.
Dominguez suggested that the DOT?
'executes a joint and several liability agree-
ments that would have SMC a deeper
capital base as SMHC stands behind ihe
project.
,' !M_HC's total equit5z in 2016 was'only
F60 billion, deemed insufficient given that
the usual financing mix of ?0 percent debt
qnd 30 percent equity for a public-private
Partnership (PPP) project would require
the company to shell out at least FZOO
billion for the F?35-billion New Manila
International Airport (NMIA) project.
Dominguez's initial concerns includes
the financial capability of the proponent
to which he himself offered a solution; the
effebt ofthe project on iraffic in the area
and any additional infrastructure that
need to be built to avoid congestion; and
its effect on the real estate vilue of New
Clark City in Central Luzoh, funded with
government money.
Dominguez worries that an airport
in Bulhcan would create added finaneial
burden on future generations since the
government has comnlitted there would
be no other competing airports to ensure
.the profi tability of concessionaires, similar
to the Cebu-Mactan international airport
scheme.
If the income is not as predicted, the
government would need to reimburse
them for both the market value of infra-
structure assets and all future profits of
the commercial business.
However, the Alliance of Concerned
Teachers (ACT) party-list Rep. Antonio
Tinio pointed out that Ang has strategic interests in
power, transportation, infrastructure, agriculture,,
among others, that all need to be protected. He pointed
out that speaker-aspirant Rep. Lord Allan Velasco is
"closely associated" with Ramon Ang.
A speaker indebted to Ang would have to com-
promise his principles and shields Airg's businesses
from the government's claims and regulations.
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