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The awarding of the Ninoy Aquino International Airport rehabilitation and maintenance project is seen in the first quarter of 2024
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The total project investment cost to upgrade and rehabilitate the airport is P141 billion
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The government seeks an upfront payment of P30 billion, annuity payments of P2 billion plus a share in revenue from commercial and non-commercial operations
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Transportation Undersecretary for Aviation and Airports Roberto Lim said there will be “generally no loss of employment” as NAIA employees will be offered the opportunity to work at the airport when privatized
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Manila International Airport Authority will remain as the regulator of NAIA’s operations
The awarding of the Ninoy Aquino International Airport (NAIA) rehabilitation and maintenance project is seen in the first quarter of 2024, Transportation Undersecretary for Aviation and Airports Roberto Lim said.
“We can say that by the first quarter of next year (2024). It is doable that there will be a conclusion, meaning to say an award, that could possibly be proclaimed by the government,” Lim said during an interview with ANC on June 7.
The Department of Transportation and Manila International Airport Authority (MIAA) on June 2 submitted to the National Economic and Development Authority a joint proposal to modernize NAIA.
Under the project’s terms of reference submitted by DOTr, the bid winner will have a 15-year concession period to invest in modern air traffic control equipment, rehabilitate runways and taxiways, and improve existing terminal facilities.
Lim said the total project investment cost to upgrade and rehabilitate NAIA is P141 billion. The government is also proposing an upfront payment of P30 billion, annuity payments of P2 billion and a share in the revenue from both commercial and non-commercial operations.
Lim noted much upside in upgrading and introducing efficiencies in NAIA. “When you say introduce efficiencies, that means you can process more passengers, you can take in more flights, that will just increase the top end of the balance sheet. More revenues [mean] a larger share for the government,” he said.
He also addressed concerns about the possible effects of the NAIA privatization on employees and the role of MIAA.
“The relationship of MIAA and the concessionaire is that of regulator and operator. So MIAA will continue as a body that will regulate and oversee that the private concessionaire complies with its obligations under the concession agreement,” Lim explained.
He said there will be “generally no loss of employment” as NAIA employees will be offered the opportunity to work at the airport when it’s privatized.
Lim clarified all airport assets will still belong to the government with the private concessionaire limited to an operations and management role.
The DOTr had said earlier it will review the P100-billion unsolicited proposal by the Manila International Airport Consortium (MIAC) to operate and maintain NAIA.
RELATED READ: New consortium proposes P100B upgrade of NAIA
MIAC comprises 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, one of the leading infrastructure investors and airport operators in the world.
MIAC believes that with its significant capital investment and the implementation of proposed operational and technological improvements, NAIA will have the ability to serve up to 62.5 million passengers a year by 2028 – more than double its currently constrained design capacity of 31 million passengers annually.
