Government expects to finalize P102-billion NAIA rehabilitation deal next month

The Transportation Department said Monday it expects to finalize the negotiation on the concession agreement for the P102-billion rehabilitation of Ninoy Aquino International Airport next month. 

“We hope we will be able to meet the deadline,” Transportation Undersecretary for Planning Ruben Reinoso said.

Reinoso said some pending issues needed to be resolved with the NAIA Consortium, including the retrenchment of the employees of Manila International Airport Authority and the real property tax. 

“The last negotiation was all employees will be absorbed and there will be no layoff, but now we need to clear that,” he said. 

Reinoso said NAIA Consortium also proposed to build Bus Rapid Transit instead of the original offer to build “People Mover” that would link passenger terminals. 

NAIA Consortium received the go-signal from the National Economic and Development Authority board to proceed with the NAIA rehabilitation project, subject to a Swiss challenge.

The project was proposed by NAIA Consortium that includes Aboitiz InfraCapital Inc, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc., and Metro Pacific Investments Corp.

Swiss Challenge, which is a form of procurement, is usually required in an unsolicited project, where other parties are given an opportunity to challenge the bid of the proponent.

Prior to the Swiss challenge, MIAA, as the primary grantor, and NAIA Consortium should negotiate the terms and conditions of the concession agreement based on the parameters prescribed by the NEDA board.

MIAA will then submit the results of the negotiation to the NEDA board and the negotiated draft concession agreement to the Office of the Solicitor General and the Department of Finance for comments within 10 days.

The project aims to alleviate the worsening air traffic congestion at NAIA and resolve capacity constraints by reconfiguring and renovating facilities and enhancing operation and maintenance. This will allow for the accommodation of more traffic.

The rehabilitation project also aims to broaden NAIA’s role as a key economic and tourism driver for Metro Manila and the whole Philippines, deliver capital infrastructure investment to improve the airport’s efficiency and increase its capacity to meet the growing passenger demand from the Philippines and the Asia Pacific region.  

It will also deliver the best-in-class passenger experience as a capital city airport, which is demanded by increasingly sophisticated travelers and create a positive first and last impression for Filipinos and visitors.

The NAIA rehabilitation project will be implemented in three phases from 2021 to 2024.

Topics: Department of Transportation , concession agreement , Ninoy Aquino International Airport , rehabilitation
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