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Tugade warns Naia Consortium

The Department of Transportation on Tuesday warned that it will drop the unsolicited proposal of Naia Consortium unless it resolves certain issues by April 30.

“The talks are taking longer. I want to impose a cap. By April 30, if no agreement [was reached with Naia Consortium], we will do it [Naia rehab],” Transportation Secretary Arthur Tugade said.

“I will stop talking with them [after April 30]. I will cross that bridge when I get there,” he said.

Transportation Secretary Arthur Tugade
Tugade said the government might pursue the Naia rehab project or accommodate other proposals from the private sector.

Tugade did not disclose the unresolved issues on the consortium’s proposal. Transportation Undersecretary for planning Reuben Reinoso earlier said there were provisions in their proposal which appeared to require a government guarantee.

The consortium secured an original proponent status for the rehabilitation and upgrade of Naia in September 2018.

The declaration of the original proponent is considered the first step in the rehabilitation and expansion of Naia, which is operating beyond its rated capacity.

The consortium’s proposal is still subject to review and approval by the National Economic and Development Authority’s board and to a Swiss Challenge in accordance with the requirements of Republic Act No. 7718 or the Build-Operate-Transfer Law.

The consortium’s members are Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Alliance Global Group Inc., AEDC, Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp.

The unsolicited proposal, which was submitted to the DOTr and Manila International Airport Authority on Feb. 12, 2018, aims to transform Naia into a regional airport hub and expand its capacity to meet the anticipated growth in passenger traffic.

The Naia project supports the government’s ‘Build, Build, Build’ program with its plan to develop the airport into a world-class facility and a regional air transport hub by upgrading its airside, landside and air navigation support―building on the gains already achieved by the DOTr in terms of improving the traffic of aircraft movements on its runways. 

The P102-billion proposal involves expanding and interconnecting the existing terminals of Naia, upgrading airside facilities, developing commercial facilities to increase airline and airport efficiencies, enhancing passenger comfort and experience and elevating the status of Naia as the country’s premier international gateway. 

The project aims to increase Naia’s capacity up to 65 million passengers per year from about 40 million It will elevate Naia to the level of major regional airports such as Changi in Singapore and Suvarnabhumi in Bangkok.  It is also seen to become a viable transit hub for the Asean region.

Naia Consortium tapped Changi Airports International Pte. Ltd. of Singapore to provide technical support in the areas of master planning, operations optimization and commercial development.

Topics: Department of Transportation , DoTr Secretary Arthur Tugade , Naia Consortium
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