The $11-billion development of the Sangley Point International Airport (SPIA) comes closer to reality as the Philippine Competition Commission (PCC) has approved the proposed joint venture between the Cavite provincial government and the consortium formed by Cavitex Holdings, Inc. and House of Investments Inc. which is undertaking the project.
In a statement yesterday, PCC said it determined the proposed transaction is unlikely to result in a substantial lessening, restriction, or prevention of competition in the relevant market.
The project is a public-private partnership (PPP) that will be implemented through a joint venture development agreement. The entities will develop, own, operate, manage, and maintain the SPIA in Cavite City, which is intended to alleviate congestion at the Ninoy Aquino International Airport.
PCC said in reviewing the JV, it focused on competition in the construction services market, the relationship between the parties as major players in the market, and the possibility of overlapping businesses.
In the decision, the Commission found that competition between construction companies was robust due to the presence of numerous qualified contractors in the construction services market.
The Commission examined the relationship between House of Investments and EEI Corp.(EEI), a major construction company.
House of Investments owns a majority stake in EEI which the Commission said, does not have enough market power to block other companies from getting what they need or finding customers. It said having Samsung C&T Corp. as the main contractor for the airport project helps ensure fair competition.
The Commission also found that the companies working together on this project do not have overlapping businesses, and that the presence of numerous companies in the market helps in sustaining competition.
SPIA is designed to meet an anticipated increase in demand for air transport in the next 30 to 40 years.
It is envisioned as a two-runway airport with a capacity for 75 million passengers per year, expandable to four runways to handle up to 130 million passengers per annum, according to the consortium’s proposal.
The project includes the construction of a four-kilometer connector road, with provisions for rail connectivity, as well as fully integrated logistics and aviation support facilities.
