PCC greenlights airport joint venture of Cavite province, SPIA consortium
MANILA, Philippines – The Philippine Competition Commission (PCC) cleared the joint venture of the Cavite provincial government and the Sangley Point International Airport (SPIA) consortium for the development of the new airport in Cavite.
On Monday, October 21, the PCC said the public-private partnership (PPP) to be implemented between the Cavite LGU and the consortium created by Luis Virata’s Cavitex Holdings and the Yuchengco-led House of Investments will “unlikely result in a substantial lessening, restriction, or prevention of competition in the revelant market.”
While House of Investments owns a majority stake in construction firm EEI Corporation, the competition watchdog said EEI’s market power is not enough to block other companies from getting customers.
“The Commission found that competition between construction companies was robust due to the presence of numerous qualified contractors in the construction services market,” the PCC said in its October 21 statement, pointing out “strong competitors” such as Megawide Construction Corporation and Makati Development Corporation.
“Should the parties themselves decide to limit competition, consumers will still have the ability to explore other options in the market due to the numerous available choices,” it added.
The watchdog also said having South Korean firm Samsung C&T Corporation on board as the project’s main contractor ensures fair competition. Samsung C&T’s former projects include the Burj Khalifa in Dubai, the Petronas Towers in Malaysia, and the extension of Changi Airport.
Meanwhile, all the other companies in the SPIA do not have overlapping businesses.
The PCC’s approval comes two years after the Cavite provincial government awarded the $11-billion airport project — which is expected to decongest the Ninoy Aquino International Airport — to the SPIA Development Consortium. The entities involved in the project will develop, own, operate, manage, and maintain the SPIA in Cavite.
– Rappler.com