The Department of Transportation (DOTr) has thumbed down the request of participating airline-related entities to own more equity than allowed at present at the consortium proposing to rehabilitate, optimize and maintain the Ninoy Aquino International Airport for P170.6 billion
The DOTr bids and awards committee said the requested increase in the equity limit for airline-related entities of up to 50 percent “is not acceptable.”
At present, the DOTr restricts airline-related entities in the consortium to own equity up to only 20 percent.
The DOTr also denied the request of the prospective bidder to remove Clark International Airport from the definition of Greater Capital Region entities.
The agency, however, said that “after due deliberation, the (equity) participation restriction of 20 percent for GCR entity is increased to 33 percent.”
Under the NAIA bid documents, a company that operates a GCR airport — which includes the airports in Clark, Bulacan, and Cavite – is restricted to owning only 20 percent of the consortium.
As of 22 September, San Miguel Corp., India’s GMR Group, the Manila International Airport Consortium, Spark 888 Management Inc, Asian Airport Consortium and Cengiz Insaat Sanayi ve Ticaret A.S. have purchased bid documents for the privation of the NAIA.
The bid submission is scheduled on 27 December this year. The DOTr expects to award the contract by January next year.
The DOTr and the Manila International Airport Authority (MIAA) serve as co-grantors if the project which has a 15-year concession span with an option for a 10-year extension.
The NAIA project requires capital investments to improve airport facilities and comply to International Civil Aviation Organization (ICAO) and other internationally accepted standards.
This means modernizing the terminal, optimizing and enhancing airport capacity to 62 million passengers per annum, boosting asset quality and passenger experience, improving the information and technology systems infrastructure, and ensuring reliable operations over the period of the concession.
The concessionaire is responsible for both the landside and airside operations of the NAIA. It is required to undertake works to enhance the compliance, safety and security of the airport, optimize and boost airport capacity to cater to the increasing air traffic in accordance with objective parameters to be provided in detail in the concession agreement.
