Property play: Dominguez worried about the adverse impact of Bulacan airport on Clark’s P70B real estate value
Finance Secretary Sonny Dominguez’s biggest concern in allowing San Miguel Corp. to build a former massive airport in Bulacan is the project’s impact on the former American air base in Clark Field, Pampanga.
Specifically, Dominguez’s biggest fear is that the construction of a a new four-runway airport and terminal – on 2,500 hectares of property in Bulakan, Bulacan with an 8.4-kilometer leading to North Luzon Expressway – would dampen the value of Clark’s 31,200-hectare land assets;.
In his opening statement in the Senate, Dominguez revealed that he had raised this concern as early as January this year during the evaluation of San Miguel’s unsolicited proposal.
“All airport projects are real estate projects. The real estate value of the New Clark City is currently $14 billion and government has committed an additional P12 billion. We wanted to know how the Bulacan Airport, which is just 65 kilometers away from Clark, will affect the value of the New Clark City, which is by the way, the property of the Filipino people,” said Dominguez.
Aside from the impact on Clark’s real estate prices, Dominguez also cited the impact of the Bulacan airport on traffic at NLEX.
“Do we need additional lanes in the North Luzon Expressway to be constructed? Do we need to change the alignment of the proposed rail system to Clark?” asked Dominguez.
Dominguez also questioned San Miguel’s capacity to infuse P200 billion in equity “which we are not sure is going to happen” considering that the Public-Private Partnership (PPP) project proponent only has P60 billion total equity in 2016.
Dominguez denied that he and his agency have been the main stumbling block to San Miguel’s project which had been approved by the National Economic and Development Authority (NEDA) board. DOF has to sign in on the project before it could go through the mandatory Swiss Challenge where a rival could make a better offer which could be matched by the original proponent.
“We take this opportunity to categorically say we have not caused the delay in the Bulacan Airport. As a matter of fact, we are even providing assistance to accelerate the approval and implementation of the project,” said Dominguez.