The Department of Transportation (DOTr) on Tuesday said a 15-year concession period is a “more appropriate” term for the rehabilitation and modernization of the Ninoy Aquino International Airport (NAIA).
Meanwhile, a party-list legislator representing the migrant workers sector sought a congressional inquiry on the poor service being provided by budget airlines that are mostly patronized by overseas Filipino workers (OFWs).
“In DOTr, we believe 15 (years) is more appropriate term that gives us flexibility,” Roberto Lim, Undersecretary for Aviation and Airports of the DOTr told reporters.
“But you know we have also incorporating in our proposal an option to extend it by another 10 years in the event circumstances warrant. That’s how we are approaching. So, 15 years with an option to extend it to 10 years,” he said.
Lim said the 10-year extension will depend on the passenger demand and if the completion of the Bulacan and Sangley airports are delayed.
The DOTr and the Manila International Airport Authority earlier submitted a joint proposal for the P141-billion NAIA solicited PPP project for approval by the National Economic and Development Authority (NEDA), giving the private concessionaire 15 years to operate the airport and recover its investments.
Lim said the government was looking at bidding out the NAIA rehabilitation project by September this year.
“Right now, with respect to the unsolicited proposal it is under evaluation by DOTr. We met with them several times and in fact we are meeting with them this week,” Lim said.
“There are still clarifications that have been raised by both sides. Issues like real property taxes and other issues,” he added.
The Manila International Airport Consortium (MIAC) earlier said its P267 billion unsolicited offer is the “fastest route” to rehabilitate and modernize the NAIA.
MIAC, whose members included six of the Philippines’ largest conglomerates, namely Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corporation, Asia’s Emerging Dragon Corp., Alliance Global – Infracorp Development Inc., Filinvest Development Corp. and JG Summit Infrastructure Holdings Corp. said its unsolicited proposal (USP) already completed its technical, economic, financial, value-for-money, and ESG studies.
The consortium has proposed a 25-year concession period for the project.
MIAC’s P267 billion bid included P211 billion of capital investments, P57 billion of which will be rolled out over the first five years with the remaining P154 billion to be invested over the remainder of the proposed 25-year concession period.
The proposal also included an unprecedented P57-billion concession payment to the government—the largest ever upfront concession payment offered for a transportation PPP project in the country, whether solicited or unsolicited.
Beyond the P267 billion of upfront payment and capital investments, the government was also projected to receive an additional P280 billion
OFW Rep. Marissa Magsino filed House Resolution 1105 to address the concerns repeatedly raised by airline passengers, notably by the OFWs on the lousy service of domestic airlines, particularly the so-called budget carriers.
“There have been consistent and perennial complaints from air passengers in and out of the country of being offloaded due to overbooking, flight delays and cancellations without timely and valid explanations; long queues, mobile app glitches, lost baggage, unnecessary security checks, lackluster or unresponsive customer assistance service, and other operational issues that make travel to and out of the country a disappointing and frustrating experience,” Magsino said in the resolution.
“One of the biggest sectors affected by the declining quality of airline services is the migrant-worker sector. Instances of revoked overseas employment contracts, penalties, and employer repercussions resulting from delayed or failed arrivals at worksites have been reported, undermining the commitment and contributions of OFWs,” she said.
In a previous Senate Committee hearing against Cebu Pacific for overbooking, offloading, and booking glitches, Rafael Bartolome, a migrant worker based in Qatar, joined the discussions, saying he experienced multiple flight cancellations on his travel in the Philippines last August. His case was endorsed to the Senate Committee on Tourism by the OFW party-list group.
Another report received by the group was from an OFW in Saudi Arabia who was meted out a seven-day salary deduction due to his missed flight, which the airline rebooked from June 6 to June 12, 2023.
The party-list lawmaker also said these air travel-related incidents complained of have also resulted in various damage to affected air passengers such as loss of business opportunities and income, missed family and social events, additional expenses incurred, accommodation difficulties, as well as physical and psychological-emotional stress.
“Due to the nature of their business which is endowed with public interest and duty, airline companies are required to observe exacting standards in accommodating their passengers with due regard to their welfare, convenience and safety. They are required extraordinary diligence, and accordingly, extraordinary service. However, their bad service not only negatively impact air passengers, but also undermine critical pillars of our economy: our tourism industry and labor migration,” Magsino added.
