The Manila International Airport Consortium (MIAC) on Monday said its P267 billion unsolicited offer is the “fastest route” to rehabilitate and modernize the Ninoy Aquino International Airport (NAIA), the country’s main international gateway.
MIAC, whose members include six of the Philippines’ largest conglomerates, namely Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corporation, Asia’s Emerging Dragon Corporation, Alliance Global – Infracorp Development Inc., Filinvest Development
Corporation and JG Summit Infrastructure Holdings Corporation said its unsolicited proposal (USP) already completed its technical, economic, financial, value-for-money, and ESG studies.
It added that the concession could be awarded this year by the Philippine government and the Masterplan can be implemented immediately and improvements being realized shortly thereafter.
“The MIAC USP represents the fastest route to the rehabilitation and modernization that NAIA urgently needs,” said Cosette Canilao, president and chief executive of Aboitiz InfraCapital, Inc.
The Department of Transportation and the Manila International Airport Authority also submitted a joint proposal for the P141-billion NAIA solicited PPP project for approval by NEDA board, giving the private concessionaire 15 years to operate the airport and recover its
investment.
“The unsolicited procurement mode of the BOT Law is a powerful tool of the government to fast track infrastructure development provided the proposal is properly prepared, backed by credible and qualified proponents, and adheres to the rules, policies and guidelines of the
government.,” Canilao said.
“MIAC’s unsolicited proposal unequivocally meets all those criteria. We have done the homework: it is a turnkey proposal ready for government evaluation, and has the financing to get boots and shovels on the ground,” she added.
MIAC’s P267 billion proposal includes 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 includes 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 is also projected to receive an additional P280 billion
over the course of the concession period from revenue sharing and taxes.
“The Manila International Airport Consortium recognizes the immense task of transforming NAIA to meet the exponentially growing demands of
Mega Manila air travel, not only in the here and now but also in the future,” Kevin L. Tan, Chairman and President of Alliance Global –
InfraCorp Development, Inc. said.
It is because of this that the members of the Consortium have pooled together its significant resources, technical expertise and
operational experience to put forward a NAIA Masterplan,”’he added.
The Consortium aims to more than double the declared capacity of the airport from 31 million passengers per annum (MPPA) to about 70 MPPA
in the long term.
Dr. Jim Yong Kim, Vice Chair and Partner, Global Infrastructure Partners (GIP) said that reliable transport infrastructure is a key
challenge for the Philippines and the rehabilitation of NAIA for the long-term is essential if Manila is to become the regional economic
hub we know it can be.
GIP is one of the leading infrastructure investors and airport operators in the world, whose portfolio of airports include
international hubs such as London Gatwick Airport, Sydney Airport, and Edinburgh Airport.
Under the NAIA Masterplan, there are three key phases of development, which will feature increases in capacity and reliability, and overall
improvements in passenger experience. Phase 1, also called “Quick Wins,” will be implemented over the first two years and is intended to
quickly increase the capacity of the airport to 54 MPPA by 2025 and improve reliability, while reducing queuing times at various
bottlenecks throughout NAIA.
Phase 2 will increase the capacity of the airport to 62.5 MPPA by 2028 through expansion and development of the terminal floor area, addition
of airfield facilities and improvements in cross-terminal transportation. Phase 3 will further increase NAIA’s capacity to
approximately 70 MPPA by 2048, and consists of long-term expansion and development projects to further expand terminal space and airfield
capacity.
In addition, MIAC’s planned rehabilitation of NAIA is projected to generate P446 billion in gross economic value. This includes, in gross
value basis, P100 billion from gross value-add in tourism activities, P152 billion from increased passenger comfort, P60 billion from
passenger time savings, P65 billion from aircraft decongestion savings, and P65 billion from new local jobs.