AMSTERDAM, 24 May 2022 – The Dutch Export Credit Agency Atradius DSB has issued an insurance policy covering the land development of the New Manila International Airport (NMIA) in the Philippines.
- Boskalis lays foundation for runways and terminals
- International partners ensure protection of natural values and compensation for local communities
- New NMIA airport connects millions of travelers and creates local jobs
The Dutch company Boskalis is carrying out these works. In July 2020 Atradius Dutch State Business received an application for the first construction phase of an airport on the coast of Bulacan province, north of the capital Manila.
This project is unique on many levels. Firstly, of course as a very important contract for our client Boskalis but also for us as the largest ECA policy in our 90-year history. In addition, I am proud of the fact that together with Boskalis and San Miguel, by keeping up the dialogue, we were able to ensure that the project will meet international standards in the field of environmental and social conditions. In doing so, we have not only contributed to making this wonderful contract possible but also really made a difference together for the local communities and nature.
The project is led by Philippine conglomerate San Miguel and is part of their largest investment in the country ever. For the Netherlands it is also a special project; the dredging contract is the largest Dutch ECA policy ever. With a size of approximately EUR 1.5 billion, this is also the largest order ever for Boskalis.
I am very pleased that all the hard work with a large team of experts has been successfully completed today. For more than a year, we have worked intensively with Atradius DSB to ensure that the construction of the new airport will take place in a socially responsible manner. In collaboration with Atradius DSB and the Dutch embassy, we succeeded in developing a broadly supported plan with an eye for the local community and the preservation of biodiversity. I would like to thank all those involved for their contribution to the positive decision of the State
New Manila International Airport (NMIA)
Tourism is an important source of income for the Philippines. The World Travel & Tourism Council has calculated that in the next ten years, tourism will represent almost a quarter (21.4%) of the Philippine economy. According to the IMF, the country will have the fastest growing economy in Southeast Asia (ASEAN) by 2022 and has been among the world's top emerging markets for years. The rationale behind a new airport became clear at the very beginning: NMIA is needed to cope with rising visitor numbers and to reduce air traffic over the capital. It will also create local jobs in the long run, both during construction and afterwards. Boskalis' job includes land development for several airport buildings and four runways. After these dredging works, construction of the next phases will follow. According to San Miguel, this includes a modern airport campus and a large solar farm. With a target capacity of 100 million passengers, NMIA will significantly decongest the existing Ninoy Aquino International Airport and become an important hub for the region.
ESG
Next to the added value of NMIA, possible adverse effects were also taken into account. This was done with an extensive environmental and social screening and a field visit to the project site. In order to optimally assess the impact of the project, information was frequently requested from, and provided to San Miguel, local NGOs, independent consultants and the Dutch embassy. In 2020 however, it quickly became clear that a number of negative effects had not been identified according to international standards. Following this, collective efforts were made to mitigate the short- and long-term impact.
Conditions
During the assessment, two elements weighed the most: the impact on biodiversity and the (economic) resettlement of the local community. The project owner has made demonstrable progress on these two points over the past two years, for example by securing the breeding area of water birds and compensating relocated residents. Agreements for further improvements are documented in the financing conditions and will be actively monitored during implementation. The involvement of Atradius DSB and the international financiers has helped to ensure that the project meets stricter conditions. These actions, and thus compliance with international standards, are a non negotiable requirement for the Netherlands to provide export credit insurance.