[ad_1]
MANILA, Philippines – The Senate approved a bill on Monday in the third and final reading that grants San Miguel Aerocity Inc. a franchise to operate an airport in the province of Bulacan and an adjacent airport city. He voted 22-0 to approve the measure, without objection.
If the House of Representatives adopts the Senate version, a bicameral conference will not be necessary and the bill is ready for President Rodrigo Duterte’s signature.
The president of the Senate, Vicente Sotto III, thanked his colleagues and the legislators of the House.
“This was an idea that was born 17 years ago, November 2003,” he said.
Group plan
He said that the construction of a new airport and airport city in Bulacán was conceived during a meeting he had with businessman Eduardo “Danding” Cojuangco, the president of San Miguel Corp. Ramón Ang, and actor Fernando Poe. Jr., and then Senators Edgardo Angara, Tessie Aquino-Oreta, and Gregorio Honasan II.
At the time, Poe was being persuaded to run for president and the group believed he would win in 2004, Sotto recalled.
“We didn’t know the location yet, but that was the group’s idea,” he said, attributing that particular plan to Cojuangco, Ang and Poe.
The airport and the airport city would be built on an area of 2,500 hectares in the city of Bulakan and are intended to help decongest the Ninoy Aquino International Airport, which has long been the main gateway to the country.
50 year franchise
According to the bill, the franchise granted to San Miguel Aerocity would last 50 years. The subsidiary would be exempt from taxes during the 10-year period of construction, development, establishment and operation of the airport and the airport city.
After that period, San Miguel would be exempt from income and real estate taxes until it has fully recovered its investment cost. Thereafter, it would be required to remit to the government any amount that exceeds the 12% internal annual rate of return.
Senator Joel Villanueva, who hails from Bulacan, said that the construction of the new airport was a “dream come true,” adding that this project would create one million jobs without the government spending a penny.
Read next
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer and more than 70 other titles, share up to 5 gadgets, listen to the news, download from 4am and share articles on social media. Call 896 6000.
For comments, complaints or inquiries, please contact us.
[ad_2]
