IFC, a member of the World Bank Group, said Wednesday state-run Bases Conversion and Development Authority and the North Luzon Airport Consortium finalized the agreements for the long-term operations and maintenance of Clark International Airport.
IFC was the lead transaction advisor to BCDA in helping structure and tender both the engineering, procurement and construction and O&M contracts. It also prepared the project and conducted competitive tenders with support from the World Bank’s Global Infrastructure Facility.
“As the first hybrid PPP airport awarded through a transparent and competitive tender, we are confident that Clark Airport will soon be able to welcome more passengers with higher-quality service. IFC’s advice has been instrumental in structuring these transactions, which have become a model for hybrid PPPs in the Philippines,” said BCDA president Vince Dizon.
The Clark International Airport is the first airport project in the Philippines to be tendered under the government’s hybrid PPP policy. It is the second main gateway into the country.
Under the project, a new 100,000-square meter passenger terminal will be built, positioning the airport as a world-class facility and boosting air transport capacity for the Greater National Capital Region.
It will serve an estimated eight million passengers annually―four times its current capacity of two million―and is expected to reduce the strain on the congested Ninoy Aquino International Airport.
The project will also help create jobs and increase development in Central Luzon, a growing economic center.
The North Luzon Consortium includes Changi Airport of Singapore, Filinvest Corporation, JG Summit and Philippine Airport Ground Support Solutions.
IFC director for East Asia and Pacific Vivek Pathak said the project showed IFC’s willingness to test and try out new PPP models in support of the government’s goal to deliver crucial infrastructure that is key to sustaining the country’s growth momentum.
“The handover of the airport to a globally-recognized operator will also help ensure quality service delivery and boost traffic connectivity to the northern provinces of the country―as well as to the region and the rest of the world,” he said.With Jess Malabanan
World Bank director for infrastructure finance and co-chair of the GIF’s governing council Jordan Schwartz said the agency was pleased to have supported BCDA and IFC.
“It’s truly an innovative solution that brings in strong, private-sector experience in operating airports,” he said.
Over the past 30 years, IFC’s PPP transaction advisory team has supported governments in over 100 countries.
IFC, a sister organization of the World Bank and a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. With Jess Malabanan