India-based GMR Group still a go on Sangley airport project

MANILA, Philippines — Indian infrastructure giant GMR Group remains committed to the long-delayed Sangley Point International Airport (SPIA) project but is still awaiting government clearances before it can proceed with identifying financing for the development.

In an interview, Srinivas Bommidala, GMR business chair for energy and international airports, said the company’s team had already undertaken two or three site visits in the past three months.

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“Our team, as far as we are concerned, we are pretty serious. But things have to move because it is connected to the Navy. We don’t want to disturb the sovereignty requirements. We respect the local country’s requirements,” Bommidala said.

GMR officials have yet to identify a specific amount they would commit to financing the project as government clearances remain pending, although they said the company has been in continuous engagement with the government and the consortium involved in the project.

For now, GMR is conducting traffic and financial studies while awaiting the necessary clearances.

GMR, which has an aviation footprint in the Philippines, first made its “firm commitment” to President Marcos in August last year to help develop the Sangley Aerocity and SPIA in Cavite.

The project has been long delayed amid changes in the consortium and other technical issues.

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Technical working group

Mr. Marcos, however, through Administrative Order No. 44 signed last June, formed a technical working group and directed key government agencies to speed up the airport’s development.

The group will be cochaired by the Department of Transportation and the Philippine Reclamation Authority. Among its tasks are to expedite the processing of permits, clearances, licenses, certifications and other authorizations; adopt measures to streamline procedures; and extend full support to the project.

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The group is also required to submit quarterly progress reports to the Office of the President.

SPIA will be built on a former American naval base currently occupied by the Philippine Navy. The project is expected to create up to 15,000 jobs and generate an estimated $500 million in government revenue.

GMR will come in as a partner of the Virata-Yuchengco-led SPIA Development Consortium, which in 2022 bagged the contract to build and operate the $11-billion airport.

The Indian firm also developed and previously operated Mactan-Cebu International Airport and now serves as its technical services provider. It likewise built Clark International Airport.

Asked if the group plans to expand beyond Sangley, Bommidala said GMR was “more than happy” to invest.

“Certainly, as a private investor, we’ll be more than happy to look at good opportunities, including Sangley and other regional airports, which will be a win-win for both of us, between India and the Philippines,” he said. INQ