Senate approves franchise for San Miguel Aerocity

THE Senate on Monday, October 12, 2020, approved on third and final reading the bill granting San Miguel Aerocity Inc., a subsidiary of San Miguel Holdings Corp., a 50-year franchise to construct and operate the New Manila International Airport and an adjacent Airport City in Bulacan.

House Bill no. 7507, which was sponsored by Senator Grace Poe, got 21 affirmative votes and no negative votes.

The bill seeks to provide San Miguel Aerocity Inc.“the right to construct, acquire, lease, operate or manage such properties as are convenient or essential to efficiently carry out objectives of this Act, such as toll roads, railroads, mass transport systems, hotels, warehouses, hangars, aircraft service stations and other facilities, as well as to develop the areas adjacent to the airport into one integral and comprehensive development, hereinafter collectively referred to as the Airport City."

The franchise will also give San Miguel 50 years to operate the P736-billion project before it turns over its ownership to the government. This includes a 10-year period to build airport facilities.

During the 10-year construction period of the Bulacan airport, the San Miguel Aerocity shall be exempted from "all direct and indirect taxes and fees."

HB 7507 also states that any amount in excess of the 12 percent internal rate of return shall be remitted by the grantee to the national government. (Jove Moya/SunStar Philippines)

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