Equity Commentary: House of Investments consortium wins $11 billion Sangley Point International Airport project

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Merkado Barkada

September 16, 2022 | 09:00

The Sangley Point International Airport Consortium (SPIA Consortium), led by the Yuchengo family House of Investments [HI 3.40] https://www.philstar.com/stock-commentary/2022/09/16/2210118/house-investments-consortium-awarded-11-b-sangley-point-international-airport-projectreceived an award notice from the provincial government of Cavite to develop the US$11 billion (630 billion peso) Sangley Point International Airport project.

In addition to HI, the SPIA consortium includes Cavitex Holdings Inc., Lucio Tan’s MacroAsia Corp. [MAC 5.29 3.32%]Munich Airport International GmbH, Ove Arup & Partners Hong Kong Ltd. and Samsung C&T Corp.

The joint press release, issued by HI, states that the SPIA project will “initially serve as an alternative to NAIA”, and that the airport will be designed to meet “an expected increase in air transport demand in the 30 to 40 coming years”. .”

The initial design will feature twin runways capable of handling up to 75 million passengers per year, but will include plans for expansion to up to four runways to accommodate up to 130 million passengers per year.

MB RESULTS

I like the part where they didn’t describe what the SPIA would do after it “initially” served as an alternative to the NAIA, however, the implication that the project is intended (at least by the SPIA Consortium ) to replace the NAIA seemed pretty obvious to me.

There are clearly powerful interests aligned against the NAIA rehabilitation project, after the resounding failures of negotiations between the government and the NAIA super consortium, not to mention what happened to Megawide [MWIDE 4.69 1.47%] after its status as the original project sponsor was revoked.

Then came the occasional mention of the total destruction of NAIA (for the benefit of the taxpayer, of course!).

The SPIA bidding process has been bizarre from the very beginning, and given MAC’s failure to follow through when it received an award notice for this same project in 2020, I guess that all what I’m saying here is that I think this is just the first or second chapter of what will no doubt be a long (and strange) story.

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