Consortium revises NAIA proposal in line with ‘Clark template’

The NAIA Consortium has submitted a revised proposal to rehabilitate and takeover the Ninoy Aquino International Airport (NAIA) in line with the Clark International Airport’s operations and maintenance (O&M) template.

The consortium comprising the seven biggest Philippine conglomerates is complying with Transportation Secretary Arthur Tugade’s requirement of patterning the proposed rehabilitation, operations and maintenance of the country’s premiere gateway after the “Clark template.”

“Yes, we submitted yesterday and followed the Clark template,” NAIA Consortium spokesperson Jimbo Reverente told GMA News Online.

The Department of Transportation (DOTr) told the consortium late last month to follow the O&M provisions of Clark International Airport. The consortium led by the Changi Airport Group won the O&M contract for Clark International in December 2018.

The consortium counts as members Changi Airports Philippines Pte. Ltd.—a fully-owned subsidiary of Changi Airports International Pte. Ltd—as well as Filinvest Development Corp., JG Summit Holdings Inc., and Philippine Airport Ground Support Solutions Inc.

The NAIA consortium, on the other hand, is made up of JG Summit, Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., and
Metro Pacific Investments Corp.

In a separate text message, Transportation Undersecretary for Planning and Project Development Ruben Reinoso told GMA News Online the NAIA Consortium’s revised proposal is now under review.

The DOTr wants to standardize unsolicited proposals for airport developments and rehabilitation and pattern it after the “Clark template,” which covers provisions for “material adverse government action.”

Under the clause, the project proponent is entitled to compensation from the government in case there is material adverse government action (MAGA) during the operation and maintenance period of the concession in which the proponent incurred additional costs or revenue loss.

This is the third time that the NAIA Consortium has revised its proposal since it submitted a P350-billion unsolicited proposal on Feb. 12, 2018 that included a 35-year concession agreement.

It has since modified its proposed rehabilitation and operating agreement, reducing the cost to P105 billion and the concession to 15 years before the DOTr gave it an original proponent status in September 2018.

The DOTr later on told the consortium to revise the proposal anew to include concrete details such as a “people mover” inside the airport.

Phase one of the proposal requires improving and expanding the terminals to increase the airport’s capacity to 65 million passengers. The project is expected to be completed in 48 months.

The consortium earlier tapped Changi Airport International, the operator of Singapore’s Changi airport—dubbed as one of the best airports in the world—for technical support.

The group also plans to tap foreign financing for the project, the details of which have yet to be finalized.—VDS, GMA News