04/13/2010 [ tribune.net.ph ]
San Miguel Holdings Corp., a unit of diversified food firm San Miguel Corp. (SMC), has signed a share purchase agreement with RPRP Ventures Management and Development Corp., a consortium led by businessmen George Yang, Rafael Puno, Lino Barte to acquire a majority interest in Caticlan International Airport Development Corp. (CIADC).
CIADC holds the exclusive rights, obligations and privileges to finance, design, construct, operate and maintain the Caticlan airport which is the gateway to world-renowned beach resorts in Boracay through a concession agreement with the government on June 22 last year.
SMC said closing of the agreement is subject to certain conditions and an appropriate disclosure shall be made upon satisfaction of such conditions.
CIADC has a 25-year concession for the P2.5-billion Caticlan project, which was the first local airport terminal that was subjected to privatization.
The project included the development of a 16-hectare property beside the airport that is estimated to cost P10 billion.
Under the development for the airport, the construction of a bigger passenger terminal, extension of the existing runway from 950 meters to 2,100 meters to accommodate bigger aircraft, improvement of the road network, and upgrading of airport facilities and air traffic control aids will be undertaken.
CIADC also plans to build support utilities, fire-fighting equipment and build a diversion road under the project.
The project will be undertaken under a build-rehabilitate-operate-transfer contract in which the government will retain ownership of the airport after 25 years. CIADC was given seven years to build and expand the airport and 25 years to operate the facilities under the contract.
All revenues will go to CIADC except for earnings from the operation and maintenance of navigation systems, which would still go to the Department of Transportation and Communications.
With the completion of the upgrading of the airport, airlines can deploy bigger aircraft with more seating capacity in Caticlan compared with the current turbo-props which the current facilities of the airport can accommodate.
More airline passengers that can be accommodated by the airport are expected to mean lower fares and at the same time increased tourism for the resort island.
A modernized Caticlan airport is also targeted to serve as an international gateway not only to Boracay but also to the rest of the Visayas.
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