MANILA — The National Economic and Development Authority’s (NEDA) Investment Coordination Committee (ICC) is looking for more information on the economic and financial rates of return for evaluation of the unsolicited proposal of San Miguel Corp. (SMC) to build a PHP700-billion airport in Bulacan province.
NEDA Director General and Socioeconomic Planning Secretary Ernesto Pernia said information pertaining to a project’s economic internal rate of return (EIRR) and financial internal rate of return (FIRR) were needed from an unsolicited proposal of the private sector.
“It seems viable. The economic internal rate of return is passable although not that much, just barely,” he said.
Pernia said more information is needed to arrive at the “definite conclusive” FIRR for the airport project.
“There are questions on the financial internal rate of return. What is the calculation of the financial rate of return, what is the basis? Does it include only the income from the airport or also income from outside the airport? Because that area is a large area of 2,200 hectares. I think the owner is intending to make that not only an airport but aerotropolis — city with an airport,” he said.
The NEDA chief said income from the project would be determined by the proponent with the Department of Transportation (DOTr).
Pernia added the NEDA ICC Cabinet Committee would evaluate and review the proposed Bulacan airport project.
Diversified conglomerate SMC plans to complete the international airport in five years after it gets the approval of the government. (PNA)
