The Philippine Competition Commission (PCC) has approved the proposed joint venture between the Cavite provincial government and a consortium consisting of Cavitex Holdings, Inc. and House of Investments, Inc. The partnership is set to develop the Sangley Point International Airport (SPIA) in Cavite City, aimed at alleviating the heavy traffic at the Ninoy Aquino International Airport (NAIA).
In its ruling, the PCC found that the joint venture, which will operate under a public-private partnership (PPP), is unlikely to negatively impact competition within the construction and airport development sectors. This approval represents a significant milestone for the SPIA project, which is expected to enhance the region’s infrastructure.
The Commission’s decision was based on several factors, including the competitive nature of the construction services market, the relationship between the involved parties, and the non-overlapping business interests of the companies.
The PCC noted that the construction services market remains highly competitive, with many qualified contractors available. This ensures that even if the joint venture aimed to limit competition, other options would still be available for consumers and stakeholders.
In its examination of the relationship between House of Investments and EEI Corporation, a major construction player, the PCC determined that despite House of Investments owning a majority stake in EEI, the latter does not have enough market dominance to block other companies from competing for the SPIA project. Moreover, the selection of Samsung C&T Corp. as the project’s lead contractor ensures fair competition.
In addition, the PCC found no significant overlap in the business operations of the companies involved in the joint venture. The presence of strong competitors, such as Megawide Construction Corp. and Makati Development Corp., helps maintain a healthy competitive environment.
With the PCC’s approval, the SPIA project is expected to move forward, contributing to the long-term improvement of the country’s infrastructure and helping to ease congestion at NAIA.