MacroAsia eyes financing aid for Sangley airport project

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MacroAsia Corporation is looking to bring in other companies under the group of taipan Lucio C. Tan, Sr.  to help fund the Sangley Point International Airport (SPIA) Project.

In a regulatory disclosure, MacroAsia confirmed that with the agreement of its consortium partner China Communications Construction Company Ltd. (CCCC) and the provincial government of Cavite, MacroAsia may bring in other firms from Tan’s group to help fund the P208.5-billion SPIA project.

The consortium of MacroAsia and CCCC was recently awarded the contract to develop and implement Phase 1 of SPIA.

“With permission of our group members, maybe PAL (Philippine Airlines) or other parts of our group can join in. LT Group is possible. It’s up to my boss and other shareholders,” MacroAsia president and chief operating officer Joseph Chua was earlier quoted as saying.

Tan is chairman and chief executive officer of MacroAsia, which is part of Tan’s group of companies.

Chua said MacroAsia has yet to finalize plans on how to raise the capital for its portion of the project as the capital expenditure is “quite big.” He said CCCC will have to talk to the provincial government of Cavite for a definitive agreement “because we’re (MacroAsia) only 40%” of the partnership. He said, however, that CCCC is “having some problems at the moment” due to the coronavirus disease outbreak that has hit China.

The consortium has 60 days to comply with all post-qualification requirements before the official signing of a joint-venture contract with the Cavite government.

After the signing, MacroAsia said it will take them 12 to 18 months to complete the detailed engineering design leading to financial closing.

The tandem of MacroAsia, an aviation services company, and Chinese state-run CCCC was the sole bidder of the project to develop a 1,500-hectare international airport.

READ: Sole bidder awarded P208B Sangley Point airport project

The consortium will be co-developing the project, providing the necessary equity investment and credit enhancements. And subject to a further competitive process or price test, it will perform engineering, procurement and construction services for the land and airport development components of the project.

The airport hub, which is being positioned as an alternative to congested Ninoy Aquino International Airport and the next big thing in air transport innovation in the country, will feature four runways as well as airside and landside facilities. The airport is expected to be on a par with Singapore’s Changi International Airport, Hong Kong International Airport, and South Korea’s Incheon International Airport.

The project’s first phase is slated for completion in 2022 and is expected to accommodate 75 million passengers yearly. The second phase of development will follow, with target completion of 2028. The airport can accommodate up to 130 million passengers annually once fully completed.