NAIA privatization 'doable' in Q1 2024, says DOTr exec

The operations, maintenance, and upgrading of the country’s premier gateway, the Ninoy Aquino International Airport (NAIA), is expected to be turned over to the private sector by the first quarter of 2024, a top official of the Department of Transportation (DOTr) said Wednesday.

"That is a very tough and tight schedule. We can say that it is doable in the first quarter of next year," a DOTr statement quoted Transportation Undersecretary for Aviation and Airports Roberto Lim as saying in an ANC interview.

"It is doable that there will be a conclusion that could possibly be proclaimed by the government," Lim added.

"That takes time. If there is more than one participant, we will have to talk to all of them. It will take time."

Last week, the DOTr and the Manila International Airport Authority (MIAA) submitted a joint proposal for the NAIA Public Private Partnership (PPP) project for approval by the National Economic Development Authority (NEDA) Board, chaired by the President.

In the proposal, the DOTr and the MIAA said a private concessionaire, which will have 15 years to operate the NAIA, will need to invest in modern air traffic control equipment, rehabilitate runways and taxiways, and improve existing terminal facilities.

"There is a lot of upside when you upgrade NAIA. You introduce efficiencies. That means you can process more passengers, you can take in more flights, and more revenues — means larger share for the government," Lim said.

The DOTr official also clarified issues surrounding the airport's privatization, including the role of the MIAA once the privatization takes place and the airport employees.

"The relationship between MIAA and the concessionaire will be regulator-operator. The MIAA will continue to operate as a body that will regulate, oversee," Lim said.

"Generally no loss of employment. Airport employees will be offered the opportunity to work when the airport facilities are privatized," he added.

The DOTr stressed that all airport assets at the NAIA still belong to the government with the private concessionaire limited to an operations and management role.

In April 2023, six Filipino conglomerates and US-based Global Infrastructure Partners (GIP) formed the Manila International Airport Consortium (MIAC) and submitted an unsolicited proposal valued at over P100 billion to upgrade NAIA.

The six conglomerates that joined forces with GIP are Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corporation, Asia's Emerging Dragon Corporation, Alliance Global-Infracorp Development, Inc., Filinvest Development Corporation, and JG Summit Infrastructure Holdings Corporation.

The MIAC forecasts that the NAIA will have the ability to serve up to 62.5 million passengers per annum efficiently by 2028, or more than double than its currently constrained design capacity, which stands at only 31 million passengers per annum. —Ted Cordero/KBK, GMA Integrated News