Connect with us
Click me!

Business

NAIA rehab project all but clinched

Phase 1 and 2 of the proposed NAIA rehabilitation covers four years of the 10-year project and costs P20 billion/

TDT

Published

on

Except for proof of its financial capability, Megawide GMR, according to an informant, has fully complied with all the requirements of its P109-billion rehabilitation of the Ninoy Aquino International Airport (NAIA) to the National Economic Development Authority (NEDA) board.

The same consortium which transformed the Mactan-Cebu International Airport into a modern gateway is reportedly confident of clinching the NAIA rehab project when it submits the financial requirements this week.

The last two steps, the submission of the project to the Cabinet within this year and the Swiss challenge within the first quarter of 2021, will just be “procedural,” according to our source.

“They hope to wrap up the project by the first quarter of 2021,” he said.

It was the only issue left with NEDA, which wanted it to comply with the full amount of P109 billion for 10 years.

Phase 1 and 2 of the proposed NAIA rehabilitation covers four years of the 10-year project and costs P20 billion.

“No problem with that though as local and overseas investors are keen on funding the project,” our source disclosed.

“GMR and Megawide have strong balance sheets. Working together, we can comply with the requirement,” he said.

Megawide has a 60 percent stake in the project, while GMR has 40 percent.

GMR Megawide will have a concession period of 25 years, the same terms as the previous proponent, once the project is approved.

One difference in the GMR Megawide proposal is in the transport modes offered — a bus rapid transport system to transport passengers to different terminals for phase 1 and an elevated railway for phase 2 of the project.

Phase 1 will focus on reducing the airside congestion of NAIA, as well as eliminating delays.

The proponent will reconfigure the check-in area and rehabilitate the runway, among other things.

Phase 2 covers the construction of a new passenger terminal, relocation of the cargo terminal to access the new passenger terminal without disrupting operations. MBA

Opposite directions
The profit-loss chart of erstwhile network rivals ABS-CBN and GMA 7 are going in opposite directions, documents submitted to the Philippine Stock Exchange showed.

While the Kapuso (GMA) network saw its net income surge by 79 percent to P3.9 billion in the first three quarters of the year, that of the Kapamilya (ABS-CBN) network reported a net loss of P7.3 billion in the January-September period, a reversal from the P2.4-billion profit a year ago.

Advertising revenues showed a similar pattern.

GMA saw a two percent increase in advertising revenues to P11.5 billion, while ABS-CBN’s advertising sales fell 65.8 percent to P5.9 billion.

A GMA official attributed the increase in sales to the shift in some advertising placements following the closure of ABS-CBN when its broadcast franchise expired and was not renewed. The rejection of the franchise renewal ultimately distorted the market, he said.

GMA also trimmed operating expenses by 23 percent, which helped boost its bottom line.

While it similarly trimmed expenses by the same percentage, ABS-CBN, meanwhile, had to pause production of new content until it struck a deal with religious network ZOE. The station was later renamed A2Z.

The Kapamilya network, in a statement, said the congressional action, in addition to the COVID-19 pandemic that the country is facing, drove down both the advertising and consumer revenues of the company.

Analysts see television earnings to fall this year as companies spend less on advertising during the coronavirus pandemic. There are also no political advertisements expected until next year.

With the decline of TV viewership and disruption of brand campaign plans, the next all-out battle is likely in digital.

According to media research firm Nielsen, while global ad spending will decline by 4.9 percent in 2020, worldwide digital ad spending will grow by 2.4 percent.

In the country, digital ad spend, according to the Statista database, will reach $638 million (around P31 billion) in 2020, with search advertising emerging as the biggest segment. MBA

Advertisement