Gov’t, NAIA Consortium to negotiate concession deal

The Duterte administration and the NAIA Consortium are now going to negotiate for the concession deal in the takeover and rehabilitation of the country’s premier gateway, a Transportation official said Friday.

The Investment Coordination Committee-Cabinet Committee (ICC) on Friday gave the consortium the greenlight to rehabilitate and takeover of the Ninoy Aquino International Airport.

The consortium’s revised proposal was approved during the ICC’s meeting on Sept. 27, Transportation Undersecretary for Planning Ruben Reinoso told GMA News Online.

“Yes,” Reinoso said, when asked to confirm the approval of the NAIA Consortium’s bid.

With the unsolicited proposed approved at the Cabinet committee level, the Department of Transportation (DOTr) and the consortium will now negotiate on final concession agreement.

The NAIA Consortium is made up of seven of the country’s largest companies, including JG Summit Holdings, Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corporation, Alliance Global Group Inc., Asia’s Emerging Dragon Corporation, Filinvest Development Corporation, and Metro Pacific Investments Corporation.

The draft concession agreement and the certified report on a successful negotiation will be submitted to the National Economic and Development Authority (NEDA) Board for approval, Reinoso noted.

Once approved by the NEDA Board, headed by President Rodrigo Duterte , the DOTr will invite other companies to a Swiss challenge for the NAIA Consortium’s terms for rehabilitating and taking over the airport.

In July, the group submitted a revised proposal since its original plan was returned by the DOTr with instructions to follow the Clark International Airport’s operations and maintenance (O&M) template.

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

The clause entitles project proponents to receive compensation from the government in cases of additional costs or revenue loss under a material adverse government action (MAGA) in the course of operations and maintenance.

This is the third revised proposal of the consortium since it submitted a P350-billion unsolicited proposal on Feb. 12, 2018 covered a 35-year concession agreement.

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

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

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

The consortium earlier tapped Changi Airport International, the operator of Singapore’s Changi Airport for technical support.

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