8 entities vie for P170B NAIA rehab

Eight private companies have acquired bidding documents for the P170.6-billion rehabilitation of the Ninoy Aquino International Airport or NAIA under a Public-Private Partnership or PPP scheme.

Transportation Secretary Jaime J. Bautista disclosed during the Economic Journalists Association of the Philippines Infrastructure Forum on Monday that the Limak Group of Turkey also offered a bid.

With the Turkish company in the picture, the DoTr now has eight contenders for the project, including GMR Airports International, San Miguel Holdings Corp., Manila International Airport Consortium, Spark 888 Management, Asian Airport Consortium, Cengiz Insaat Sanayi ve Ticaret A.S. and Incheon Airport Corp.

"There are eight possible bidders. Last week there was one company from Turkey who bought the bidding documents. We are now in the process of [having] one-on-one meeting with them. We are responding to their questions, to their queries," Bautista said.

"We are expecting that they will be able to meet our deadline to submit their proposal by December 27," he added.

Bautista added that "the best and final offer" will be awarded by the first quarter of 2024. The financial closing for the project is expected to happen in the second quarter of next year.

Based on the initial Terms of Reference of the project, the winning concessionaire would need to sign a 15-year Rehabilitate-Operate-Expand-Transfer deal with the DOTr and the Manila International Airport Authority.

The winning consortium would also need to provide an upfront payment of P30 billion to the government as premium and another P2 billion in annuity payments. It is also required to remit a certain percentage of the revenues to the government

The deal mandates the concessionaire to rehabilitate and upgrade the passenger terminals, commercial assets and surface access facilities, and modernize the communications, navigation and surveillance systems of the airport.

It is also required to provide a connection at the Naia Terminal 3 to the Metro Manila Subway, deploy buses for boarding transfers and improve the baggage handling systems.

Once these are realized, the overall passenger experience at NAIA is expected to improve, while the annual passenger capacity is likely to expand by at least 62 million from the current 32 million.

Previously, Bautista floated the possibility of closing down the airport — but only if nearby airports become operational.

Bautista explained that the government can have the option to close NAIA if airports in adjacent provinces like Cavite and Bulacan are ready to accommodate both local and international travelers.

Bautista also said in case the airport continues its operations, SMC's Bulacan Airport can still drive up profits despite the competition.

The same is true when the $11-billion Sangley Point International Airport in Cavite starts operations, he added.