Clark to pursue talks with SMC group

Written by Miguel R. Camus / Reporter
Thursday, 17 June 2010 19:06

A TOP official of Clark International Airport Corp. (CIAC) shot down a request by a Malaysian consortium asking it to reconsider its decision in choosing a Filipino-led group backed by San Miguel Corp. (SMC) for the planned redevelopment of a new terminal at the Diosdado Macapagal International Airport  (DMIA) complex inside the Clark Freeport Zone in Pampanga.

CIAC last month inked detailed negotiations with the Philco Aero Group which, it said, submitted the “superior offer” for the project and bested Malaysian consortium  Bristeel Overseas Ventures Inc.

In a phone interview on Thursday, CIAC president Victor Jose Luciano said CIAC and Philco Aero are in the middle of negotiations as required under the joint-venture rules.

Luciano reiterated that if negotiations with Philco Aero fail, CIAC can then review the proposal of the Malaysians.

“This is not a matter of closing our doors to Bristeel. Like it or not, they are the second-best proposal at this stage,” Luciano told the BusinessMirror yesterday.

Bristeel earlier this week appealed to the government to “take a second hard look” at its $150-million proposal to finance the development of a second terminal for Clark airport, which is poised to become the country’s next international air gateway.

“The joint-venture process is sequential [and] we have a proposal on the table. If for some reason we cannot reach a successful conclusion, we will take a look [again] at Bristeel,” Luciano said, adding that CIAC will not rush to award any contracts.

Luciano said following successful negotiations, there will be a signing of the terms of reference, which will also serve as the terms for a Swiss or competitive challenge allowing other groups to compete for the project. The process could take another 45 to 60 days, he said.

The Philco Aero group is majority-controlled by Filipino firm Penson and Co., while foreign partners include South Korea-based Posco Engineering and Construction Co., Samil PricewaterhouseCoopers and Korea Development  Bank.

Philco Aero’s controlling shareholder Ricardo Penson earlier told the BusinessMirror that his group has inked agreements that will pave the way for SMC to take a majority position in the consortium.

“Talks with CIAC are on track so far,” Penson said in a separate interview. He added that the new terminal will be marketed as “Clark International Airport,” noting that the name has “better” brand recall.  

Philco Aero plans to invest as much as $126 million or roughly P5.67 billion to develop DMIA Terminal 2, although present talks with CIAC also involve the group taking control of Terminal 1. He said the concession period will be for 30 years. The proposal will allow DMIA, which handled 750,000 passengers last year, to gradually increase passenger capacity from 3 million to 7 million over a five-year period.

The Clark airport will be San Miguel’s second airport project after it acquired a majority stake in a company which is developing Caticlan airport, the nearest air gateway to Boracay Island.