DOTr: Bidding for NAIA privatization seen in September

The call for interested firms to bid for the operations, maintenance, and upgrading of the Ninoy Aquino International Airport (NAIA) is targeted to be started in September this year, a top official of the Department of Transportation (DOTr) said Thursday.

In a Zoom interview with reporters, Transportation Undersecretary for Aviation and Airports Roberto Lim said the DOTr is looking forward to securing the National Economic Development Authority (NEDA) Board’s approval “let’s say in a month or a month-and-a-half.”

Last week, the DOTr and the Manila International Airport Authority (MIAA) submitted a joint proposal for the NAIA Public Private Partnership (PPP) project for approval by the NEDA Board, chaired by the President.

In the proposal, the DOTr and the MIAA said a private concessionaire, which will have 15 years to operate the NAIA, will need to invest in modern air traffic control equipment, rehabilitate runways and taxiways, and improve existing terminal facilities.

“If we get the approval of the NEDA [Board]… let us say by September we can publish the invitation. And those who want to participate can acquire the kit that will define what you need to do and what you need to submit,” Lim said.

The Transportation official reiterated his earlier announcement that the selection of a winning bidder could be announced by the first quarter of 2024.

“Remember, there is a long process in the selection, this is a technical assessment and there will be negotiations. This is an estimate we believe is doable,” Lim said.

He said that the capital investment needed for the NAIA’s operations, maintenance, and upgrade would reached P141 billion for a concession period of 15 years.

“If you average that, that would be P9.5 billion of investment every year,” Lim said.

As to the improvements needed for the NAIA, he said, “Immediately, we would want to introduce digitalization as part of the process of managing the airport like using biometrics in measuring and identifying the passengers, the movement of the airports.”

“There is a way now to process. We need to do it efficiently and smoothly so that there will be no inconvenience to the passengers,” he said.

“Privatization of NAIA will lead to a more efficient operation of the airport. It can lead to a faster rate of investment in modernizing the facility so that we can really introduce the technology needed for NAIA to level up along with our neighbors’ airports,” he added.

Lim said that the DOTr is also evaluating the unsolicited proposal submitted by the Philippine conglomerates together with their foreign partner.

“They have responded to the call of the government to modernize the country’s facilities. They submitted their proposal and we are starting to evaluate also, discuss, and seek clarification,” Lim said.

“We are meeting them next week. What we submitted to NEDA is just a definition of what we believe is the minimum terms for the initiative,” he said.

In April 2023, six Filipino conglomerates and US-based Global Infrastructure Partners (GIP) formed the Manila International Airport Consortium (MIAC) and submitted an unsolicited proposal valued at over P100 billion to upgrade NAIA.

The six conglomerates that joined forces with GIP are 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.

The MIAC forecasts that the NAIA will have the ability to serve up to 62.5 million passengers per annum efficiently by 2028, or more than double than its currently constrained design capacity, which stands at only 31 million passengers per annum.—LDF, GMA Integrated News