Mandatory infra spend for NAIA rehab pegged at P130 billion

The winning bidder for the Ninoy Aquino International Airport (NAIA) rehabilitation will have to spend some P130 billion for infrastructure in the next five years as part of the terms of reference, the Transportation Department said Tuesday.

According to Transportation Secretary Jaime Bautista, the terms of reference for the privatization of NAIA will include a mandatory infrastructure spend, aside from an upfront payment which has yet to be determined.

“There is a commitment to spend a certain amount of money for infrastructure. In fact, tinitignan namin, meron kami ‘yung tinatawag na (we are looking at, we have something called) mandatory infrastructure that should be implemented within the next five years,” Bautista said on the sidelines of the Philippine Economic Briefing in Pasay City.

“We’re looking at, ‘yun lang, is aabutin ‘yan ng (just that will reach) almost a hundred, P130 billion ‘yung investment in the next three years or five years,” he added.

The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand “Bongbong” Marcos Jr., last week opted to push through with plans to privatize NAIA through a solicited bid with the upfront payment cost now being studied and initially estimated at P30 billion.

This comes after the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA) in June submitted a joint proposal to the NEDA Board seeking a private concession to invest and improve the NAIA for 15 years.

The NEDA Board approved the 15-year concession period, with the option to renew for another 10 years based on a performance review and should the two new airports — the New Manila International Airport in Bulacan and the Sangley International Airport in Cavite — be delayed.

Bautista on Tuesday said a number of parties have already signified their intent to bid for the project, particularly foreign investors.

“May mga maraming foreign companies na interested kasi dito sa Asia, tayo na lang ‘yung medyo magandang opportunity ang makukuha nitong mga investors kasi magaganda na ‘yung airports sa other countries and wala na silang masyadong opportunity to make investments on those countries,” he said.

(There are a lot of foreign companies interested because here in Asia, we are the only good opportunity for investors because airports in other countries are already good.)

“Dito sa Pilipinas, considering napakaraming pasahero, ay magandang opportunity to para sa private sector na mag-invest sa bagong airport,” he added.

(Here in the Philippines, considering the number of passengers, this is an attractive opportunity for the private sector to invest in the new airport.)

The Manila International Airport Consortium (MIAC) in April submitted an unsolicited proposal to take over NAIA, but this was deemed “de facto closed” when the government opted for a solicited bid.

The group included Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Asia’s Emerging Dragon Corp., Alliance Global-Infracorp Development Inc., Filinvest Development Corp., JG Summit Infrastructure Holdings Corp., and US-based Global Infrastructure Partners (GIP).

At present, NAIA’s terminals service over 40 million passengers versus its 32-million annual capacity, with 38 to 40 landings and takeoffs made per hour.

With the privatization, Bautista said NAIA would be upgraded to increase its capacity and increase movements to up to 50 landing and takeoffs hourly, reflecting a 20% increase.

Bautista last week said the DOTr targets to hand over the operations, maintenance, and rehabilitation of the NAIA to the winning private bidder by December 2023. — DVM, GMA Integrated News