Posted on November 10, 2016
By Rizal Raoul Reyes, BusinessMirror
THE boom in the country’s property sector could be sustained by a colossal project to be undertaken by the partnership between All-Asia Resources and Reclamation Corp. (ARRC) and Belle Corp. On October 29 the two companies signed a shareholder’s agreement in support of the $50-billion Philippine Global Gateway Project (PGGP) that involves the construction of modern, world-class airport, seaport and mixed-use real-estate development off the coast of Sangley, Cavite.
ARRC Chairman William Tieng, President Wilson Tieng, Belle Vice Chairman and Executive Director Willy Ocier and Belle Corp. Executive Vice President and Chief Finance Officer Manuel Gana pose for posterity after the signing of the shareholder’s agreement held in Makati City.
In an interview with the BusinessMirror, Leechiu Property Consultants CEO David Leechiu said the reclamation project is very timely because this will be another window of opportunity for development. “I think that this project is very timely because, after 2018, there will be very little land left in Manila for development so this coupled with the airport and seaport will be fantastic for the property sector,” Leechiu said.
Leechiu also believes the masterplanned community around the airport would create interest among investors because of its huge potential that might equal the performance of Bonifacio Global City (BGC), whereby boutique developers can build different structures and take advantage of the lack of land.
ARRC started the project in 2012, when its shareholders agreed to build a world-class airport facility that can accommodate passenger traffic well into the year 2050, and the first integrated seaport that is accessible to the inhabitants and business enterprises in Metro Manila.
ARRC President Wilson Tieng revealed during an interview with reporters recently in Makati City that the project has been “verbally approved” by President Duterte. Furthermore, Tieng said the proposal has been submitted to the National Economic and Development Authority and the intercoordinating agencies. “Probably, we can say we are looking at a $50-billion project for the whole coverage,” he said.
The dredging of the area would be the initial phase of the 2,500-hectare project. Afterwards, the construction of the new airport will follow. “Being a priority of the Philippine government, we are committed to build the infrastructure because we need a new and modern airport,” Tieng explained.
Construction of the seaport would follow and the last phase will be the building of the economic zone. Tieng said the construction of these projects aims to enhance the country’s competitiveness, especially when the Asean economic integration comes into full swing.
Tieng said the new airport can accommodate 50 million passengers per year once it is fully developed. He emphasized the airport project would help boost the country’s tourism program.
“The new airport is going to be positioned as the country’s premiere airport. This is going to be the gateway of the Philippines,” Tieng emphasized.
The entry of Xicheng District-based China Communications Construction Co. Ltd. (CCCC) gave the project a big boost when it committed to invest $20 billion into the project. The signing of agreement between the two companies was made during the recent state visit of Duterte to China.
With the huge investment, Tieng said CCCC will be a major partner, but declined to say how much stake the company will have in the project. The CCCC will also be the engineering procurement contractor of the reclamation and airport component of the project, among others.
Dredging of the area will be finished in 18 months. The construction of the airport will last for five years.
“This is a major milestone given the project’s immense potential and our pursuit for multimodal facilities that will help boost business, economy and tourism in the Philippines,” Tieng said.
Willy Ocier, vice chairman of Belle Corp., said the project would extremely be beneficial to the Philippine economy. “We need a lot of infrastructure to make the country competitive in 2050,” he said.
Source: BusinessMirror
