The construction of the $15-billion New Manila International Airport (NMIA) is expected to push through this year, according to the Department of Transportation San Miguel Corp. initially set the groundbreaking last December, but the Department of Finance (DOF) raised some clarification on the contract which put the construction on hold.
Arthur Tugade, DOTr secretary, said the DOF has no authority to stop the project construction as the contract has already been signed..
Tugade said the DOF merely sought clarification on some of the terms of the contract, specifically the Material Adverse Government Action (MAGA) and cap liability of the project.
The MAGA provision requires government to compensate the private sector in case the former fails to deliver on its part of the deal, such as on right-of-way or if it deviates from its contractual obligation.
The cap on liability measured the operational performance and deliverables of both parties.
Last September, SMC and DOTr signed the 50-year concession agreement for the construction and development of NMIA.
Under the agreement, SMC will undertake the financing, design, construction, supply, completion, testing, commissioning, and operation and maintenance (O&M) of the new international gateway.
SMC is targeted to complete the construction of two parallel runways in three to four years that would allow the airport to accommodate 35 million passenger per year initially.
The new airport will be expanded to four runways, eight taxiways and three passenger terminals by the fifth year.
The airport has a design capacity of 100 million passengers per year, that could be expanded to accommodate up to 200 million passenger annually.
SMC will build the facility on a 2,500-hectare property in Bulakan town, about 30 kilometers northeast of Metro Manila at no cost to the government
SMC has engaged the services of global firms Groupe ADPi, Meinhardt Group and Jacobs to design and build NMIA.
