Veto wont affect construction of Bulacan Int'l airport – Palace

Malacañang said the construction of the international airport in Bulacan will push through even after President Marcos’ veto of the bill creating the Bulacan Airport City Special Economic Zone and Freeport.

The San Miguel franchise to operate the international airport was already approved by both the Senate and House on October 11, 2020.

“The presidential veto

was meant to include the necessary corrections and include the missing processes that might render House Bill 7575 entirely unconstitutional,” Communications Secretary Trixie Cruz-Angeles explained

She said that President Marcos fully supports the creation of the Bulacan Airport City Special Economic Zone and Freeport, and his decision to veto the proposed measure was to cure its defects.

Press Secretary Trixie Cruz-Angeles made the clarification after Marcos vetoed HB 7575.

San Miguel Corporation, one of the country’s biggest conglomerates, is investing ₱740 billion to turn a 2,500-hectare property in Bulacan into an aerotropolis, featuring a worldclass gateway capable of handling 100 million passengers annually, plus an adjacent urban and industrial hub.

In a statement, Angeles said the veto was the “fastest way” to cure the bill’s defects before it lapsed into law on July 4.

“Presidential veto is [the] fastest way to cure the defects of HB 7575, especially the provision which exempts the Commission on Audit (COA) to look into the financial transactions on the special economic zone and freeport,” Angeles said.

In his veto message, Marcos said, “fiscal prudence must be exercised particularly at times when resources are scarce, and needs are abundant.”

“l cannot support the bill considering the provisions that pose substantial fiscal risks to the country and its infringement on or conflict with other agencies’ mandates and authorities,” he wrote.

He added that since the system would be rendered incapable of generating a yield sufficient to sustain the country’s social and economic infrastructure, the government would be forced to seek new sources of revenue through additional taxes or borrowings in the future.

“In the end, it is the taxpayers who will ultimately bear the brunt of the burden,” President Marcos said.

In her statement, Angeles reiterated that the proposed measure lacks coherence with existing laws, rules and regulations by failing to provide audit provisions for the COA, procedures for the expropriation of lands awarded to agrarian reform beneficiaries, and a master plan for the specific metes and bounds of the economic zone.

She said all financial transactions in government are audited by COA, which former Solicitor General Jose Calida now leads, and the proposed Bulacan Airport City Special Economic Zone and Freeport is no exception.

“Without those necessary amendments indicated in the veto explanation, the law may be vulnerable to constitutional challenge,” Angeles said.

“The delegation of rule-making power on environmental laws, which is unique to the special economic zone, is of particular concern,” she added.

According to Angeles, Executive Secretary Victor Rodriguez, on July 1, immediately sent President Marcos’ veto message to the Senate President and the House Speaker.

Angeles maintained the bill did not provide procedures for expropriation of lands awarded to agrarian reform beneficiaries and granted “blanket powers” to the economic zone authority to handle technical airport operations, which would violate aeronautical laws.

She also pointed out that the proposed ecozone would be located near the Clark Special Economic Zone in Pampanga province that borders Bulacan, which runs against government policy on creating special economic zones in strategic locations.

Ang still optimistic

San Miguel Corporation (SMC) President and Chief Executive Officer Ramon S. Ang said that if all the issues raised in President Marcos’ veto could be addressed, the full potential of the Bulacan Airport City Special Economic Zone to generate over $200 billion in export revenues annually could still be realized.

Ang issued this statement on Monday, July 4, following the President’s veto.

“We respect and abide by the government’s decision,” Ang said.

The long-term benefits to the country of the ecozone would far outweigh and outnumber any supposed “losses” due to the grant of incentives to potential investors, the SMC executive underscored.

“Regardless of the outcome of any further government review or action on the ecozone, SMC remains fully committed to continuing on its path of growth through nation-building, and building the NMIA,” Ang pledged.

“We are eager to continue working with government, and play an active role in helping our country reach its goals – as we have faithfully and consistently done,” he added.

SMC is fully financing and building the ₱740-billion New Manila International Airport (NMIA) project in Bulacan.

If approved, the Bulacan economic zone will be managed by the Philippine government, he pointed out.

Any tax incentives to be given to investors will still pass the Department of Finance’s Fiscal Incentives Review Board (FIRB) review and approval process, to ensure these are aligned with the CREATE Law.

The CREATE Law was enacted to provide relief to foreign and local corporations already doing business in the Philippines, in light of the pandemic.

“Among our plans for the ecozone is to help create science and technology export hubs with the cheapest logistics cost, because these will be close to the airport and seaport,” Ang explained.

“We are looking to attract world-class semiconductor manufacturers, battery power storage system manufacturers, electric vehicle makers, and even modular nuclear power assemblies and other new and emerging tech industries. These industries alone will add some US$200 billion in annual exports – a big boost to our GDP,” he reiterated.

The benefits include hundreds of thousands of new jobs to be generated, which will benefit the next and future generations of young Filipino graduates, professionals, and skilled workers.

Ang also addressed the issue of NMIA being close to the Clark Airport, which was mentioned in the veto and was initially raised by the Department of Finance under the previous administration, which said NMIA would “compete” with Clark International Airport.

Apart from the considerable distance between the two airports – Clark is approximately some 100 kilometers from Metro Manila – large and progressive cities all over the world employ a multiple airport strategy, such as Tokyo and New York, among others.

Anticipating the long-term population and economic growth of Metro Manila and Luzon provinces in the next 20-30 years, and taking into consideration the limited expansion opportunities for the current gateway, Ninoy Aquino International Airport (NAIA) – which only has space for one runway operating at any given time, compared to NMIA’s four parallel runways – the country would need several airports to efficiently serve Filipinos, tourists, and industries, Ang added.

“What we don’t want is to repeat the mistakes of the past where we were not quick enough to develop new infrastructure, giving rise to overcapacity and congestion on our aging roads, ports, and other facilities, and even in our skies,” he elaborated.

“Temporary fixes will not do anymore. We are building for the future, with a clear vision of a fully developed and progressive Philippines.”