Boosting the facilities of the Ninoy Aquino International Airport (NAIA) on even footing with peers around the world requires a rehabilitation or concession program at least 15 years long, the Department of Transportation (DOTr) said on Tuesday.
“In the DOTr, we believe 15 years is a more appropriate term that gives us flexibility,” Roberto Lim, undersecretary for aviation and airports at the DOTr, told reporters.
According to him, the agency proposal includes an option to extend the concession by another 10 years if warranted.
Lim said the 10 year extension depends on 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 P141- billion joint proposal for approval by the NEDA board, giving the private concessionaire 15 years to operate the airport and recover its investment.
Lim said the government targets to bid out the NAIA 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” to clarify issues like property tax and others.
The Manila International Airport Consortium (MIAC) earlier claimed its unsolicited P267 billion offer is the “fastest route” to rehabilitate and modernize the NAIA.
MIAC, whose members include six of the country’s 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) has completed all technical, economic, financial, value-for-money, and ESG studies.
The consortium has proposed a 25-year concession period.
MIAC’s P267 billion proposal includes P211-billion as capital investment of which P57 billion will be rolled out over five years and the remaining P154 billion to be invested over the balance of the concession period.
This also includes an unprecedented P57 billion concession payment to the government—the largest ever upfront concession payment offered for a transportation PPP project, whether solicited or unsolicited.
Beyond the P267 billion upfront payment and capital investment, the government is also seen to receive an additional P280 billion.
