SPIA Development set to win Sangley airport project

SPIA Development set to win Sangley airport project
  • The SPIA Development Consortium is assured of bagging next month a contract to develop the Sangley Point International Airport (SPIA), there being no challenger to its unsolicited proposal
  • The Cavite provincial government confirmed no other interested parties registered and bought bid documents for the project until the August 17 deadline
  • Cavite Governor Jonvic Remulla said the contract will be awarded in September

SPIA Development Consortium is set to bag next month the contract for the development of the Sangley Point International Airport (SPIA) after no other bidder has challenged its unsolicited proposal.

The Cavite provincial government confirmed in a statement that no interested companies had registered and bought bid documents for the competitive challenge process of the project until the deadline on August 17.

The competitive challenge, or Swiss challenge, is a mandatory process under the Public-Private Partnership (PPP) Code of the Province of Cavite. It is designed to solicit comparative proposals from other potential proponents as counterbids to the unsolicited proposal submitted by SPIA Development Consortium, the original project proponent.

Under the rules of competitive challenge, the PPP Selection Committee can recommend to the provincial governor the award of the project to the original proponent in case there are no challengers.

Cavite Governor Jonvic Remulla was quoted as saying the contract will be awarded on September 14.

The SPIA Development Consortium submitted in 2021 a US$10.9 billion unsolicited proposal for a joint venture with the Cavite provincial government to develop SPIA, after the latter declared in October 2021 the second bidding for the project as a failure.

SPIA Development Consortium is composed of domestic firms Cavitex Holdings Inc., MacroAsia Corp.; and Yuchengco Group of Companies; and foreign partners South Korean group Samsung C&T Corp.; Munich Airport International GmbH, the management services arm of Munich Airport; and London-based creative planning, design, and engineering firm Arup Group.

The joint venture will be responsible for co-developing the project, providing the necessary equity investment, debt financing, and credit enhancements. It will also be performing engineering, procurement and construction services for the land and airport development components of the project.

In January, the consortium was granted an original proponent status (OPS) for the project. Such status gives a proponent the right to directly negotiate the final terms and conditions of the joint venture with the Cavite province, as well as the right to match the best counterproposal that may be received during the 60-day mandatory competitive challenge process.

READ: SPIA consortium bags original proponent status for Sangley airport

MacroAsia and its joint venture partner China Communications Construction Co. Ltd. Bid and won the P208.5 billion contract to develop and implement Phase 1 of the SPIA project in February 2020. But in February 2021, the Cavite provincial government cancelled the award of contract, citing various deficiencies in the submission of requirements.

SPIA is being positioned as an alternative to congested NAIA and is envisioned to rival Singapore’s Changi International Airport, the Hong Kong International Airport, and South Korea’s Incheon International Airport.