Senate approves bill granting San Miguel franchise to operate Bulacan airport
MANILA, Philippines — The Senate on Monday approved on third and final reading a bill granting San Miguel Aerocity Inc. a franchise to operate an airport in Bulacan province and an adjacent airport city. It voted 22-0 to pass the measure, with no objections.
If the House of Representatives adopts the Senate version, there will be no need for a bicameral conference and the bill is ready for President Rodrigo Duterte’s signature.
Senate President Vicente Sotto III thanked his colleagues as well as the House lawmakers.
“This was an idea that was born 17 years ago, November of 2003,” he said.
Group’s plan
He said the construction of a new airport and airport city in Bulacan was conceived during a meeting that he had with businessman Eduardo “Danding” Cojuangco, San Miguel Corp. President Ramon Ang, actor Fernando Poe. Jr., and then Senators Edgardo Angara, Tessie Aquino-Oreta and Gregorio Honasan II.
At that time, Poe was being persuaded to run for president and the group believed he would win in 2004, Sotto recalled.
Article continues after this advertisement“We did not know the location yet but that was the idea of the group,” he said, attributing that particular plan to Cojuangco, Ang and Poe.
Article continues after this advertisementThe airport and airport city would rise on a 2,500-hectare area in Bulakan town and is intended to help decongest Ninoy Aquino International Airport, which has long been the main gateway into the country.
50-year franchise
Under the bill, the franchise given to San Miguel Aerocity would last 50 years. The subsidiary would be exempted from taxes during the 10-year period of construction, development, establishment and operation of the airport and airport city.
After that period, San Miguel would be exempted from income and real property taxes until it has fully recovered its investment cost. Thereafter, it would be required to remit to the government any amount in excess of the annual 12 percent internal rate of return.
Sen. Joel Villanueva, who hails from Bulacan, said the construction of the new airport was a “dream come true,” adding that this project would produce a million jobs without the government spending a single centavo.
