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UPDATE 2-China's CCCC, Philippines' Macroasia win $10 bln airport project

Published 12/17/2019, 06:25 PM
UPDATE 2-China's CCCC, Philippines' Macroasia win $10 bln airport project

* CCCC-Macroasia consortium is sole bidder
* Latest multi-billion airport project in the Philippines
* Airport is part of government infrastructure overhaul
* CCCC debarred from 2011-2017 from World Bank projects

(Adds detail and background on CCCC, airport projects)
By Neil Jerome Morales
MANILA, Dec 17 (Reuters) - China Communications Construction
Co Ltd (CCCC) 601800.SS and Philippine partner Macroasia Corp
MAC.PS have won an auction for a $10 billion airport outside
Manila, the latest in a multi-billion dollar push by the
Philippines to modernise and decongest its overstretched
infrastructure.
CCCC joined airline service company Macroasia in a
consortium with the Cavite provincial government to carry out
the expansion of the Sangley Point International Airport, one of
two big projects that aim to take pressure off the four
terminals of Manila's notoriously packed international airport.
The size of CCCC's stake in the Sangley project was not
immediately clear.
It follows similar attempts by China's state-run telecoms
and energy firms to enter the Philippines, a country with a
history of close ties with the United States, and fragile
relations with China.
The CCCC-Macroasia consortium was the only bid submitted and
was deemed complete, Jesse Grepo, legal officer of the selection
committee, told reporters on Tuesday.
Macroasia is owned by the chairman of flag carrier
Philippine Airlines.
The Sangley project involves land reclamation and expansion
of a small airport, part of a major infrastructure overhaul that
critics say President Rodrigo Duterte has been too slow to
begin.
The project will be a big boost to an archipelago nation
that has failed to attract the level of investment and tourism
seen in Thailand, Vietnam and Malaysia, partly due to its
traffic problems and inadequate roads, ports and airports.
The main gateway in Manila has been rated as among the
world's worst airports but is set for $2 billion of upgrades and
operations revamps.
Conglomerate San Miguel Corp SMC.PS plans to build a 736
billion pesos ($14.4 billion) airport to handle 100 million
passengers a year at Bulacan to the north of Manila.
Duterte has sought to befriend Beijing in the hope of
securing major investments, rebuking critics who say he is
gambling with national sovereignty at a time when China is
accused of using force in the South China Sea and seeking to
control international waters on its terms.
Some lawmakers are worried that Chinese state involvement in
key sectors is a long-term threat to national security.
CCCC could be a bone of contention, having been debarred
from World Bank projects in the Philippines from 2011-2017 for
"fraudulent practices" under the first phase of a major road
improvement programme a decade ago.
Macroasia did not immediately respond to a request for
comment on the Sangley airport venture.

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