San Miguel buys majority stake in group that will modernize Caticlan Airport

San Miguel Corp. has entered the airport development business by acquiring a majority stake in the Caticlan International Airport Development Corp. (CIADC), in line with its diversification into the infrastructure business and entry into leisure estate development on Boracay Island. The diversifying food and beverage giant has used unit San Miguel Holdings Corp. to buy the shares from businessman George T. Yang, whose company had bagged the contract to modernize the Caticlan Airport, the gateway to world famous beach spot Boracay. Aside from Yang, also part of the consortium are Rafael P. Puno, Lino A. Barte, and RPRP Ventures Management and Development Corp. "Closing of the agreement is subject to certain conditions and an appropriate disclosure [will] be made upon [the] satisfaction of such conditions," San Miguel said. It provided no other details. The government earlier said the CIADC would modernize the Caticlan Airport in several phases under a build-operate-transfer scheme for P2.51 billion. The initial phase will improve the existing terminal building, extend and widen the runway, build a new passenger terminal building, vehicular parking area and other facilities. After the first phase, expected to take a year, the contractor will add another floor to the one-storey terminal building and flatten out an adjacent hill, which will involve moving 350,000 cubic meters of soil. The CIADC will also build fences around the airport, upgrade the fire station and fit the facility with new navigational aids. The next phase, expected to take two to four years, will further extend and widen the runway, while a new two-storey terminal building will be built. The final phase, which will take one or two more years, includes further extension and widening of the runway. — N.P. Aquino, GMANews.TV