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DOT warns RSA could lose P11B performance bond due to SMC-Bulacan airport delay

The Department of Transportation (DOTr) warned that San Miguel Corp. (SMC) would forfeit its P11-billion performance bond if it fails to fulfill its agreement of constructing the Bulacan International Airport.

The Department of Transportation (DOTr) warned that San Miguel Corp. (SMC) would forfeit its P11-billion performance bond if it fails to fulfill its agreement of constructing the Bulacan International Airport.

Transport Assistant Secretary for Procurement and Project Implementation Giovanni Lopez made this assurance following delays in the construction of the P735-billion airport project which was supposed to break ground between December 2019 and January this year.

“Kapag wala pong nangyari sa construction at may nilabag silang mga patakaran, alituntunin sa pag construct ng Bulacan airport, rest assured that will be forfeited in favor of the government,” Lopez said in a press briefing in Malacañang.

Lopez said Transport Secretary Art Tugade has given the SMC enough time to “recover.”

“The Secretary (Tugade) at this point in time has opted to exercise human compassion and decency. Kung puwede po natin pagbigyan ng konti pang panahon para po tuluyang maka-recover ang proponent sa Bulacan airport,” he said.

Earlier, Tugade said the airport project was currently on hold following issues that needed to be “clarified” by the Department of Finance.

Finance Secretary Carlos Dominguez III, who previously expressed reservations on the project, wants the contract to be favorable to the government, Tugade said.

The DOTr formally awarded the SMC the airport project on August 14, 2019, two weeks after the conclusion of the Swiss Challenge where the conglomerate’s unsolicited proposal went uncontested.

SMC was given the notice to proceed by the DOTr on September 18, 2019.

The Bulacan International Airport, also known as the New Manila International Airport, aims to solve congestion at the Ninoy Aquino International Airport (NAIA) and complement the operations of Clark International Airport.

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