Investments sought for NAIA replacement

BY KERLYN G. BAUTISTA, BusinessWorld Reporter The government is aiming to raise P46.9 billion for the development of the Diosdado Macapagal International Airport (DMIA) in Clark, Pampanga into the Philippines’ premier gateway by 2015. Domestic and international air operations at the country’s main gateway, the Ninoy Aquino International Airport (NAIA), are expected to reach saturation point 10 years from now. Transportation assistant secretary Roberto R. Castañares said the government will kick off an investor road show for the development of the DMIA next week at the Asia Pacific Airport Investment World 2006 in Hong Kong. The government aims to woo airport investors and developers from United States, Europe, Thailand, India, Malaysia, Hong Kong and New Zealand. As a sweetener, the government will offer to shoulder costs for the DMIA’s "airside" facilities while investors would only spend for the "landside" ones, Mr. Castañares said. Airside facility improvements cover the extension of Runway 1 to 3,800 meters from 3,200 meters and reconstruction of Runway 2 to 2,800 meters from 3,200 meters. It also covers the installation of 21 to 46 aircraft stands over 10 years until 2025. The allocation for airside facilities, which represents 30% of the P46.9 billion estimated cost of developing the DMIA, will be sourced from the national budget beginning next year, Mr. Castañares said. Capital expenditure for land-side facilities, to be sourced from investors and equivalent to 70% of the P46.9-billion project cost, covers construction of international and domestic passenger terminals, freight terminals, express freight terminals, and a new parking area. The 5,365-square meter passenger terminal in DMIA needs to be expanded to 60,000 square meters by 2015 and to 140,000 square meters by 2025 to handle NAIA’s international air operations. Another passenger terminal measuring 24,000 square meters by 2015 to 63,000 square meters by 2025 should be put up to accommodate projected domestic air demand. Freight terminals, which are nonexistent at the DMIA, should also be built with measurements of 33,750 square meters by 2015 to 96,750 square meters by 2025 for international freight, and 13,500 square meters by 2015 and 33,750 square meters by 2025 for domestic freight. The DMIA’s express freight terminal, which measures 2,400 square meters, should also be expanded to 41,500 square meters by 2015 and to 72,000 square meters by 2025. The 6,488-square meter vehicle parking area at DMIA should also be extended to 52,500 square meters by 2015 and to 140,000 square meters by 2025. "The limited land area and the limited expansion potential of the existing site (625 hectares) is the most serious constraint limiting the future capacity improvement of the main gateway (NAIA) of the country," Mr. Castañares said. Data from the Manila International Airport Authority show that NAIA Runway 06/24 - the airport’s main runway - is scheduled to be saturated in 2006-2007, while Runway 13/31 - the secondary runway - will be saturated from 2012-2014. The NAIA Terminal 3 and 2 will also be saturated from 2008-2011 while access roads to the network will be clogged by 2010. NAIA cargo facilities have already been saturated since 2003 and aircraft parking since 2004. NAIA facilities cannot also accommodate the A380-800, the new-generation aircraft from European airjet manufacturer Airbus that can fly 555 passengers or a pure freight capacity of 150 tons. Some of the foreign airlines that have placed orders with Airbus for A380 are operating at the NAIA, including Singapore Airlines and Emirates. In contrast, the main zone of the DMIA - a former United States military base - consists of a 2,200-hectare international aviation complex, 335-hectare tourism complex, 266-hectare industrial complex, 81-hectare residential complex, data from the Clark International Airport Corp. showed. The sub-zone of the DMIA also consists of 28,000 hectares of land, which is being transformed into an agro-industrial area. The DMIA has two runways and a passenger terminal that is capable of handling limited domestic and international flights. There are currently thee international low-cost carriers operating in DMIA: Air Asia Berhad of Malaysia, Tiger Airways of Singapore, and Thai Air Asia of Thailand.