The Philippine Competition Commission (PCC) has approved a joint venture between the Cavite provincial government and a consortium including Cavitex Holdings, Inc. and House of Investments, Inc. to develop the USD11 billion Sangley Point International Airport (SPIA). The PCC’s decision deemed the project unlikely to hinder competition within the relevant market, highlighting its public-private partnership nature.
The SPIA aims to alleviate congestion at the Ninoy Aquino International Airport by developing, owning, operating, and maintaining the new facility in Cavite City. The PCC’s assessment focused on three main areas: the competitive landscape in the construction services market, the dynamics between the parties involved, and potential business overlaps.
Despite the House of Investments’ majority stake in EEI Corporation, the PCC concluded that EEI does not possess sufficient market power to restrict competition. The involvement of Samsung C&T Corp. as the main contractor further enhances competitive integrity. The Commission noted a robust presence of other construction firms, such as Megawide Construction Corp. and Makati Development Corp., which help maintain a fair market environment.
The SPIA project includes significant infrastructure developments, such as a four-kilometer connector road with rail connectivity, and is projected to generate 50,000 jobs, stimulating foreign investments and economic growth in the region.
