PRESS RELEASE
21 October 2024

PCC clears Sangley airport joint venture of Cavite province, Cavitex-House of Investments consortium

The Philippine Competition Commission (PCC) has approved the proposed joint venture between the Cavite provincial government and the consortium formed by Cavitex Holdings, Inc. and House of Investments, Inc. for the development of the Sangley Point International Airport (SPIA).

In its decision, the Commission determined that the proposed transaction, which involves a public-private partnership (PPP) project that will be implemented through a joint venture development agreement, is unlikely to result in a substantial lessening, restriction, or prevention of competition in the relevant market.

The entities involved will develop, own, operate, manage, and maintain the SPIA in Cavite City, which is intended to alleviate congestion at the Ninoy Aquino International Airport.

The decision focused on three key points: competition in the construction services market, the relationship between the parties as major players in the market, and the possibility of overlapping businesses.

Competition in the Construction Services

In the decision, the Commission found that competition between construction companies was robust due to the presence of numerous qualified contractors in the construction services market. Should the parties themselves decide to limit competition, consumers will still have the ability to explore other options in the market due to the numerous available choices.

Parties as Major Market Players

The Commission examined the relationship between House of Investments and EEI Corporation (EEI), a major construction company. Despite House of Investments owning a majority stake in EEI, the Commission decided that EEI does not have enough market power to block other companies from getting what they need or finding customers. Additionally, having Samsung C&T Corp. as the main contractor for the airport project helps ensure fair competition.

Possibility of Overlapping Businesses

Lastly, the Commission found that the companies working together on this project do not have overlapping businesses, and that the presence of numerous companies in the market helps in sustaining competition.

The Commission noted that even if the companies involved wanted to limit their suppliers’ options, they would not have enough market power to do so. Additionally, the presence of strong competitors like Megawide Construction Corp. and Makati Development Corp. helps to prevent any unfair competitive practices by the joint venture.

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REFERENCE:  
publicaffairs@phcc.gov.ph  
PCC Public Affairs and Research Division