HB07507: AN ACT GRANTING SAN MIGUEL AEROCITY INC. A FRANCHISE TO CONSTRUCT, DEVELOP, ESTABLISH, OPERATE, AND MAINTAIN A DOMESTIC AND INTERNATIONAL AIRPORT IN THE MUNICIPALITY OF BULAKAN, PROVINCE OF BULACAN, AND TO CONSTRUCT, DEVELOP, ESTABLISH, OPERATE, AND MAINT
This House Bill grants San Miguel Aerocity Inc. a 50-year franchise to construct, develop, establish, operate, and maintain a domestic and international airport in Barangays Taliptip and Bambang, Municipality of Bulakan, Province of Bulacan, along with an adjacent "Airport City". The franchise includes the right to construct and operate essential facilities like toll roads, railroads, mass transport systems, hotels, and warehouses, aiming to promote industrial, economic, and social development in the areas adjacent to the airport. The grantee is required to operate and maintain the airport and Airport City in accordance with international standards and to seek appropriate certifications from the Civil Aviation Authority of the Philippines (CAAP).
During the initial ten-year construction period, the grantee will be exempt from various direct and indirect taxes and fees related to the project. After this period, the grantee will be exempt from income taxes and taxes on real estate, buildings, and personal property until investment costs are fully recovered, after which they will be subject to all applicable taxes. A unique provision is the revenue sharing mechanism with the government: after investment costs are recovered, any income generated by the Airport City exceeding a twelve percent (12%) Internal Rate of Return (IRR) will be remitted to the National Government. Additionally, the bill encourages public participation by requiring the grantee to offer at least thirty percent (30%) of its outstanding capital stock to Filipino citizens in a securities exchange.