SMC Franchise for Bulacan International Airport Approved by the Lower House

The Philippine House of Representatives approved on third and final reading a measure granting congressional franchise to conglomerate San Miguel Corporation (SMC) to build and operate a world-class international airport in the province of Bulacan.



According to the Lower House of Congress, with a total of 218 affirmative votes, six negative votes, and two abstentions, House Bill 7507, grants SMC subsidiary, San Miguel Aerocity, Inc., a franchise to establish a domestic and international airport in the Municipality of Bulakan, Bulacan and develop an adjacent airport city.



Under the approved bill, the SMC Franchise shall be in effect for 50 years, inclusive of the 10-year maximum period for the construction of the airport and the Airport City.

Based upon the bill, the 10-year construction period, the grantee shall exampt from any and all direct and indirect taxes, percentage taxes, customs duties and tariffs, business taxes, franchise taxes, and supervision fees.



Under the profit-sharing agreement in the franchise bill, the grantee shall be entitled to generate income from the Airport City equivalent to a project Internal Rate of Return (IRR) of 12 percent per annum.



Any amount in excess of the 12 percent IRR of the Airport City shall be remitted to the national government.

One of the country's most brilliant lawmaker, Albay Rep. Joey Salceda, chairman of the House Ways and Means Committee, said the project would be beneficial with the PHP740-billion infrastructure investment that “come(s) entirely out of the private sector’s hands”.



Rep. Salceda was quoted as saying "This is probably the biggest single-item investment in the country’s history. San Miguel is a Filipino company that has kept nearly all of its money here, to develop this country,” Salceda said.



“They are doubling down on their commitment to Philippine development with this investment. I want the airport to happen on fair and equitable terms.”



(c) PNA/SMC Photos

SMC Franchise for Bulacan International Airport Approved by the Lower House SMC Franchise for Bulacan International Airport Approved by the Lower House Reviewed by Phil Newsome on September 08, 2020 Rating: 5
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