A Kuwaiti firm has offered a proposal to the Clark International Airport Corporation (CIAC) to develop the Diosdado Macapagal International Airport (DMIA) Terminal 2 project worth $1.2 billion including other components at the 2,367 hectare Clark Civil Aviation Complex .
This was revealed by CIAC chairman Nestor Mangio during a press conference held at the Lakeshore on Tuesday. However, Mangio clarified to reporters that the offer is not yet a "sweet deal" since it will undergo a Competitive Challenge under the rules and regulations of the Joint Venture Selection Committee (JVSC).
Under the JVSC rules and regulations, the Kuwaiti proposal will undergo a Competitive Challenge through a Publication to various news dailies to allow other Prospective Private Sector Participants (PSP) to give a better proposal for the development of the DMIA Terminal 2. Last December 24, ALMAL Investment Company sent a letter of proposal to Mangio signifying their interests to develop the DMIA Terminal 2 as well as the 1,500 hectares adjacent land of the Clark Civil Aviation Complex in Clark Freeport Zone in the province of Pampanga.
Under the proposal, "ALMAL is committed to develop all civil components of DMIA Terminals 1,2 and 3 as well as the adjacent land of 1,500 hectares following the original plan at a total investment value of $1.2 billion."Mangio also said that ALMAL will develop Terminal 2 at a cost of $100 million for the Phase 1 project .
Terminal 2 will have a total floor area of 35,000 square meters and is designed to accommodate 7 million passengers annually, Mangio added.He also said that upon the signing and execution of the Concession Agreement ALMAL-Pride Consortuim shall pay an upfront fee of P100 million to CIAC as a "goodwill money".
Under the joint venture, CIAC will have a share of 30 percent while ALMAL will have a 70 percent share in the project. The duration of the joint venture is about 45 years and renewable for 25 years subject to the mutual agreement of both parties and the limitations imposed by the laws, rules and regulations of the Philippines.The components of the project includes the developments of an Airport equipment for DMIA Terminal 2; Airport Plaza; Transport Plaza; Covered Parking Area ; Expansion of existing Apron Facilities; Widening of access roads with interchanges; demolition of some existing buildings; develop a new identity and signature and site utilities development.
Mangio said "ALMAL shares the vision of President Gloria Macapagal Arroyo of making DMIA as the Premier International Gateway of the Philippines." ALMAL Investment Company of Kuwait was established in 1980 as a closed shareholding company. The capital was increased in1997 from KWD 2 million to KWD 35 million ($100 million).
The company is engaged in various types of international and local investments as well as Airport development activities besides providing financial products and services to investors.
The company through its associates and subsidiaries has ventured into real estate, Islamic finance, information technology, health care, financial services, venture capital, hedge funds and equities.
The firm is owned and controlled by the Al Kharafi Group of Kuwait. In July 2008, the company wants to build a $2.2 billion Port in Tunisia under a build operate and transfer (BOT) scheme.