By: Dr. Ramon Ricardo A. Roque, CESOI, Diplomate
The likelihood of the Philippines having a new, better, and truly world-class international airport is increasing as the Department of Transportation (DOTr) already forwarded the unsolicited proposal of San Miguel Corporation (SMC) for a R700-billion international airport project in Bulakan, Bulacan to the National Economic and Development Authority (NEDA) Board for evaluation and approval.
The SMC proposal appears to be a win-win-win initiative for the government, the SMC and the Filipino people.
A new international airport built using private business funding is a win for the government because its approval of the same will mean providing for a vital facility that serves the public without sacrificing other more or equally important government projects. With the usual funding challenges faced by the government, the new airport project will not impose financial burden to it.
As it will be built in Bulacan, it will most likely have a positive effect on the vehicular traffic condition in Metro Manila particularly on roads leading to the Ninoy Aquino International Airport (NAIA).
It will also be a big boost to the tourism program of the government. As airports create the first and oftentimes lasting impression about the country, a world-class Philippine airport can certainly entice more foreign tourists to visit the country. It will also mean that the Philippines will no longer be in the list of countries with the “worst” airports.
Since the proposal in on a Build-Operate-Transfer (BOT) scheme that provides a 50-year concession, it will most likely be a financially rewarding investment for SMC. From a business perspective, the project promises to be a profitable venture because it is about providing a service of desired value to the airline companies and the passengers.
The proposed new airport in Bulacan will be a definite win for the Philippines and the Filipino people. For passengers, it will mean convenience and better service. Even for non-passengers, the new airport will be a source of pride for all Filipinos.
The six-year completion of the project will be beyond the term of the current Administration. This should not be a concern for NEDA because initiatives such as this should never be about who gets the credit and who gets to inaugurate it. For the current Administration to approve the project is itself a credit that will define its performance.
What the current Administration needs to do is to ensure that the SMC proposal will indeed be a win for the Filipino people. What are the trade-offs in this project? Will airport fees be reasonable? Will it be managed well? The answers to these and other similar questions need to be advantageous to the Filipino people for it to score a real win for them.