₱1.83-Billion NIA III upgrade budget release; Clark as the next Asia’s ‘aerotropolis

 

Philippines to spend $45 million for airport upgrade

The Philippine government has released $45 million to spruce up its newest airport terminal in a bid to boost tourism.

Budget Secretary Florencio Abad said Tuesday that the completion and upgrade of Terminal 3 of Ninoy Aquino International Airport will ease traffic on the 32-year-old Terminal 1.

Terminal 3, which opened in 2008, is already operating over its capacity, with 13.8 million passengers last year, more than 800,000 over its capacity. Once it is upgraded, it will handle more international flights, easing the load on Terminal 1, which is solely for international flights.

Originally designed for 4.5 million passengers yearly, Terminal 1 handled 8.2 million passengers last year, up from 7.8 million in 2011. A majority of the passengers at the airport's Terminal 2 are domestic passengers. (http://bit.ly/X1JaQn)

Clark International Airport as Asia's next 'aerotropolis

With the world's economic center of gravity rapidly moving eastward, there is increasing urgency to develop Clark International Airport into an aviation hub, and this is the focus of a two-day conference to be held this month at the Clark Freeport Zone in Pampanga.

"The Case for Asia's Next Aerotropolis" is the theme of the Clark Aviation Conference 2013, a trade gathering that will examine Clark's compelling case as an aerotropolis, an idea in community planning where airports serve as the center for new cities growing around them.

The conference, being organized by Clark International Airport Corp (CIAC) in partnership with Global Gateway Logistics City, takes place Feb. 21-22, 2013, at the Widus Convention Center in Clark Freeport Zone. It coincides with the annual Hot Air Balloon Fiesta.

"The event will highlight Clark International Airport's critical role in easing air traffic congestion in Manila and driving economic expansion in Central Luzon. It will also identify infrastructure and policy developments at Clark Freeport Zone that are designed to attract airport-related businesses and investments," said CIAC president and CEO Victor Jose Luciano.

"More importantly, the conference is a call for the full development of Clark International Airport as an aviation nerve center in the light of the economic growth in Asia."

Heads of government agencies—including Tourism Secretary Ramon Jimenez, Bases Conversion and Development Authority president Atty. Arnel Casanova and Trade Assistant Secretary Fe Agoncillo-Reyes—and private-sector representatives will look at Clark's prospects as an aviation and investment destination in Asia, even as they examine pressing aviation and tourism concerns and propose sustainable and long-term solutions.

Keynote speaker is Greg Lindsay, the US-based co-author of the bestselling book, Aerotropolis, The Way We'll Live Next. Other speakers include Tourism Undersecretary Daniel Corpuz, John Forbes of the Joint Foreign Chambers of Commerce, former Tourism Secretary Narzalina Lim, and Capt. Benjamin Solis, adviser of CIAC.

The convention targets international investors, logistics and supply chain executives, tourism stakeholders, airline officials, import and export managers, and members of the academe. They are expected to gain insights into Clark's potentials as an aviation and investment destination in Asia and understand better its increasing role in national and regional development.

To register or make inquiries, call event manager PortCalls at (632) 552-7072, (632) 551-1775, or (0917) 5555273; or email lizaalmonte@portcalls.com. For more details, log on to clarkaviationconference.com. (http://bit.ly/14MPsFK)

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South Korean ratings agency gives Philippines a credit lift

The Philippines got a ratings boost from South Korea's NICE Investors Service Co. Ltd., which took into account various factors, including the country's improved fiscal policy, private consumption and the strong Philippine peso.

In a report distributed to reporters on Tuesday, NICE rated the country's long-term foreign currency at "BB+," with a positive outlook. The Philippines is currently rated one notch below investment grade by the top three credit-rating agencies, with a potential upgrade anticipated within the year.

In its report, NICE said that weak taxes have been holding back improvements in the country's fiscal condition but it noted that the Aquino administration has "advanced its tax administration, increasing overall tax revenue."

"In addition, the government has been committed to fiscal consolidation by taking various measures, like enacting the 'sin' tax law and implementing other fiscal-reform actions," it added.

"As the government has consistently enhanced the business environment to attract more investment, the efforts are expected to begin to deliver visible outcomes in the future," the agency said.

Cited in the report were "solid" private consumption, partly driven by continued growth of money from overseas Filipino workers [OFW], and the rapid expansion of the business process outsourcing (BPO) sector.

"Consumption based on [OFW] remittances is robust enough to absorb external shocks to some extent; on the back of increasing government expenditure and rebounding export, the economic growth rate of 2012 is expected to jump from that of the year before," NICE said.

While the strong peso has been cited as hurting the BPO and export businesses, the debt watcher said the currency's appreciation combined with the global economic slowdown has "largely contributed" to price stabilization.

NICE cautioned that relatively large public debts to gross domestic product have undermined the government's ability for infrastructure investment and that the share of foreign currency-denominated debts is still relatively high.

"But the increasing mid/long-term domestic borrowings may limit default risks that would be triggered by external changes," it said. (http://bit.ly/VW1zuv)

Business Mirror

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