Korean firm eyes 40% of SMC’s NAIA project

MANILA, Philippines - A Korean company has expressed interest in acquiring a 40-percent interest in the P15.8-billion Ninoy Aquino International Airport (NAIA) expressway to be undertaken by diversified conglomerate San Miguel Corp. (SMC).

This was revealed by SMC president and chief operating officer Ramon S. Ang as he defended the company’s bid of P11-billion upfront cash payment for the 7.5-kilometer expressway project.

Ang said in an interview with reporters that several foreign companies have approached SMC for a possible joint venture for the NAIA expressway project.

“If we want to sell 30 percent to 40 percent to a foreign company, a Korean company really wants to come in and is even offering a premium for the project,” he stressed.

He refused to divulge the identity of the Korean firm saying it might jeopardize negotiations.

The NAIA expressway project is a strategic part of the envisioned Metro Manila Urban Expressway System to be built around a network of expressways serving Metro Manila.

The project, valued at P15.86 billion, would provide access to NAIA Terminals 1, 2, and 3 by linking the Skyway to the South Luzon expressway (SLEX) and the Manila-Cavite Toll Expressway (Cavitex). 

It would also support the development of the Philippine Amusement Gaming Corp. (PAGCOR) Entertainment City located along the Manila Bay reclamation area. It will connect all three terminals of the NAIA Complex and ease the flow of traffic to and from the airport.

The project involves the improvement of Phase 1, the construction of phase 2, the construction of at-grade feeder roads leading to and from PAGCOR Entertainment City, and the operation and maintenance.

The first phase of the road project was completed by SMC’s Citra Metro Manila Tollways Corp. through the construction of an off-ramp that leads to the front of the NAIA Terminal 3.

Last May 6, the Department of Public Works and Highways (DPWH) issued the Notice of Award (NOA) to SMC’s Optimal Infrastructure Development Inc. giving the diversified conglomerate 60 days to hand over to government the P11-billion upfront cash payment it offered.