San Miguel Aerocity Inc., a subsidiary of San Miguel Holdings Corporation, has been awarded a franchise for the construction, development, operation, and maintenance of domestic and international airports in Bulacan.
Republic Act No. 11506 lapsed into law this Dec. 20, 2020, after President Rodrigo Duterte did not sign the enrolled bill within 30 days after his office received it.
Under RA 11506, it is said that San Miguel Aerocity Inc still needs to obtain a permit or license for the construction, installation, and operation of the airport from the Civil Aviation Authority of the Philippines (CAAP) to ensure that it complies with international standards.
The franchise term is 50 years and after that, San Miguel will turn over the airport to the Department of Transportation.
San Miguel Aerocity will also be given tax exemptions on all types of indirect and direct taxes related to the construction, development, establishment, and operation of the airport within 10 years of building airport facilities.
After that, they are still exempted from paying income and real estate taxes unless the Bureau of Internal Revenue determines that the company has recovered from the investment.
San Miguel Aerocity granted a franchise for Bulacan airport
There is also a provision in the law for revenue sharing between the government and San Miguel Aerocity Inc.
It will be recalled that the DOTR initially said that the construction of the airport would be of great help to resolve the then congestion at the NAIA terminals.
San Miguel Corp. (SMC) announced two weeks ago that the construction of the New Manila International Airport project in Bulacan would start in the first quarter of next year.
The P740-billion airport in Bulakan, Bulacan “will be the largest, most modern international gateway in the Philippines.”
Meanwhile, SMC president and chief operating officer Ramon Ang confirmed that it awarded a $1.73-billion contract to Dutch dredging firm Royal Boskalis Westminster N.V. through its wholly-owned subsidiary Boskalis Philippines Inc.
The proposed airport will be built on a 2,500-hectare coastal property as part of an envisioned 12,000-hectare township that features a residential zone, government center, seaport, and an industrial zone.