Two legislators and a senior administration official on Sunday urged the Department of Transportation (DOTr) to heed the advice of the Asian Development Bank (ADB) to extend the bidding for the Ninoy Aquino International Airport (NAIA) rehabilitation project for one month to ensure due diligence and avoid monopoly.
In separate interviews, Manila Rep Rolando Valeriano, OFW party-list Rep. Marissa Magsino, and Presidential Adviser on Poverty Alleviation Larry Gadon were of the consensus that the ADB’s position should not be ignored, but instead followed as it would be for the “best interest of the government and the public as well.”
“Sa ganito pong mga proyekto bihasa ang ADB. Sana mapakinggan ang opinyon nila na mapalawig ang deadline. Mas mainam ito at mas makakapili ang DoTR ng pinakakwalipikado gumawa ng proyekto dahil mas marami pa ang makakasali sa bid at mas makakapaghanda sila. Malaking halaga ang nakataya, due diligence is a must (In cases like this, the ADb is an expert. We should listen to its views and extend the deadline in order for the DOTr to choose the most qualified contractor for the project by allowing more bidders to participate. Big money is at stake here, hence, due diligence is a must),” said Valeriano, chairman of the House Committee on Metro Manila Development.
Observers noted that if the December 27 deadline were followed, the DoTr runs the risk of being accused of “favoring” only two prospective bidders and “rigging” the process, since the two bidders have submitted unsolicited proposals for the project and are likely to be the only bidders to meet the timeline.
“We strongly believe that extending the bid submission date would attract more bids, thus resulting in greater competition and a better financial outcome for the government… It would also send a strong statement that the government is committed to ensuring a level playing field for all investors, now that recent reforms allow local and foreign investors to compete for NAIA on the same terms, without foreign ownership restrictions,” the ADB explained in a memorandum.
Magsino stressed that the one-month delay in the bidding for the project “will be more beneficial.”
“If extending the deadline for proposals on these plans will allow the government to choose from more reputable companies and secure the most cost-effective agreement, then the one-month delay eventually will be more beneficial,” she said.
“The only thing we want to ensure in whatever decision the government will make is that the people will not be shortchanged; the option we will take must vastly improve the services of NAIA, solve capacity issues, upgrade the technology infrastructure, and ensure steady and reliable operation for the benefit of air passengers, especially our OFWs,” she added.
The ADB proposed that the bidding be extended from December 27, 2023 January 29, 2024 primarily to allow potential bidders more time to prepare and participate. It said that increased competition will ensure better financial outcome for the government.
The ADB memo noted that at least four more bidders for the project were seeking the extension. If the December 27 deadline pushes through, the bank said only two bidders may submit the required bid documents.
Gadon, meanwhile, pointed out that the extension proposed by the ADB is called for, especially in the light of the fact that the December 27 deadline will marginalize other potential bidders.
“I agree to the proposed extension as it will give more time to potential proponents in coming up with a more realistic terms of bid that would become more advantageous for the government and, ultimately, to the public,” explained Gadon, who was appointed presidential adviser in the middle of this year.
“The rehabilitation is highly complex and technical. Issues might come up during construction and renovation works which may turn out critical (and) which could be prevented by constantly reviewing all aspects of work,” he further stressed.
ADB likewise reasoned out that the extension aligns with the government’s commitment to encourage new players and foreign investment in Philippine public-private partnerships and is aimed at fostering competition without causing undue delays to NAIA’s modernization.
Rep. Magsino said the DoTr leadership must seriously consider the proposal and heed the clamor from stakeholders and government leaders to have the deadline extended.
“We believe the leadership of the Department of Transportation and the Manila International Airport Authority, in coordination with the National Economic Development Authority, have exhaustively studied the pros and cons of the rehabilitation and expansion of NAIA through concession agreements, as well as the advantages and disadvantages of privatized operations for our international airports… Lastly, we hope the winning proposal will not result in higher terminal fees for air passengers. The government must retain its authority in the pricing of fees,” the lawmaker explained.
Eight firms had bought bid documents for the project. These are Asian Airport Consortium, Turkish firm Cengiz Insaat Sanayi ve Ticaret A.S., South Korea’s Incheon International Airport Corp., India’s GMR Group, Turkish conglomerate Limak Holding A.S., Manila International Airport Consortium, San Miguel Corp., and Spark 888 Management Inc.
The DOTr and MIAA began the bidding process for the contract involving the rehabilitation, expansion, and operation of NAIA last August. The project seeks to address long-standing capacity issues, increase the airport’s annual capacity to at least 62 million passengers from 35 million.
The winning bidder will have 15 years to rehabilitate the airport’s passenger terminals and airside facilities, develop commercial assets and utility systems, and provide surface access facilities, among others.
