NAIA PRIVATIZATION

Balisacan: NEDA Board prefers solicited mode, MIAC's unsolicited bid ‘de facto closed’

The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand "Bongbong" Marcos Jr., on Wednesday approved the Department of Transportation’s (DOTr) solicited bid to privatize the operations of the Ninoy Aquino International Airport (NAIA).

At a Palace briefing, NEDA Secretary Arsenio Balisacan said the NEDA Board approved three new infrastructure projects, which include the “solicited proposal to rehabilitate, operate, expand and transfer the NAIA PPP (public-private partnership) project, also known as the solicited NAIA PPP Project.”

“This project is under the DOTr and the MIAA (Manila International Airport Authority),” he said.

In June, the DOTr and MIAA submitted a joint proposal to the NEDA Board seeking a private concessionaire to invest in modern air traffic control equipment, rehabilitate runways and taxiways, and improve existing terminal facilities for a period of 15 years.

The DOTr earlier floated the possibility of lengthening the concession period by including a provision that would extend it by another 10 years should the two new airports — New Manila International Airport in Bulacan and Sangley International Airport in Cavite — are delayed.

“With the total project cost of P170.6 billion, the goal of the project is to address longstanding issues at NAIA such as the inadequate capacity of passenger terminal buildings and restricted aircraft movement,” Balisacan said.

“It aims to increase the current annual airport capacity from 35 million to at least 62 million passengers. The NAIA PPP Project also aims to increase air traffic movement from 40 to 48 per hour. The Project is also expected to improve the overall passenger experience and service quality to prevent long queues, lengthy waiting time and other passenger inconveniences,” he added.

The DOTr had said that the call for interested firms to bid for the operations, maintenance, and upgrading of NAIA is targeted in September this year.

“We expect to have the winning bidder within the year so as early as next year we can have the project started,” Balisacan said.

Unsolicited bid ‘de facto closed’

The DOTr’s solicited mode to privatize NAIA’s operations overlaps with the unsolicited proposal of the Manila International Airport Consortium (MIAC), which seeks a longer concession period of 25 years.

The MIAC — composed of US-based Global Infrastructure Partners and Philippine conglomerates Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Asia’s Emerging Dragon Corp., Alliance Global-Infracorp Development Inc., Filinvest Development Corp., JG Summit Infrastructure Holdings Corp. — has submitted a P267-billion unsolicited proposal to rehabilitate and develop the NAIA into a modernized gateway.

To recall, Transportation Undersecretary for Aviation Roberto Lim said the NEDA Board shall decide on “the best route to take” whether solicited or unsolicited regarding NAIA’s privatization.

Asked what will now happen to MIAC’s unsolicited proposal, Balisacan said, “Now that the solicited proposal has been approved, we are now saying it’s open for competitive bidding so the unsolicited proposal is de facto already closed.”

“Those who are planning or proposing to come in under unsolicited [mode] are encouraged and we hope that they will participate in the solicited mode of PPP,” he added.

As early as January, Transportation Secretary Jaime Bautista has said that the agency is preparing the terms of reference for NAIA’s privatization as it tapped the assistance of the Asian Development Bank.

MIAC's statement

In a statement, the MIAC said it “heard” the NEDA Board’s decision to take the solicited route for the privatization of NAIA’s operations.

“MIAC is one with the government on its infrastructure priorities, and is aligned with the DOTr and NEDA’s commitment to the urgent task of revitalizing NAIA given its importance as the country’s main international gateway. MIAC is united with the government on the mission to deliver a better NAIA for the country,” the consortium said.

“Regardless of the route, we firmly believe that NAIA’s modernization requires a long-term and comprehensive solution delivered by a credible and capable party at the quickest possible time. These criteria — regardless of the approach — would best benefit NAIA and the Filipino people,” it added. —KBK, GMA Integrated News