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The privatization of Ninoy Aquino International Airport will be fast-tracked, says Transportation Secretary Jaime Bautista
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Bautista expects to complete the project’s terms of reference by end of the first quarter
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DOTr is working with the Asian Development Bank and Public Private Partnership Center for the completion of the TOR
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The DOTr chief noted that with the privatization and use of technology, NAIA can still handle more aircraft movements despite having only two runways
The Department of Transportation will fast-track the privatization of Ninoy Aquino International Airport (NAIA), according to Secretary Jaime Bautista.
In a January 12 Senate Committee on Public Services hearing, Bautista said completion of the project terms of reference (TOR) is expected by the end of the first quarter. DOTr is working with the Asian Development Bank and Public Private Partnership Center to complete the TOR.
RELATED READ: NAIA privatization TOR for completion by first quarter 2023
The DOTr chief noted that with the privatization and the use of technology, NAIA can still handle more aircraft movements despite having only two runways.
“We can only handle 40 to 44 movements per hour, but with new technology, we should be able to increase this to 50, or even 55,” Bautista said. He cited as example an airport in the United Kingdom with only one runway but can handle as many as 55 flights per hour with the use of technology.
He disclosed that one of the owners of the UK airport is part of a group interested in bidding for the NAIA project. He did not provide details.
There had been previous unsolicited proposals to rehabilitate and operate the country’s main gateway but to no avail.
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Part of the TOR is the rehabilitation of NAIA, which will include providing more public utility vehicles for passengers, redevelopment of areas such as the parking spaces, and improved and fully automated baggage-handling system.
Bautista said these improvements should be done before a new airport close to Manila becomes operational.
He said it is possible NAIA may be shut down and converted into another kind of facility if demand dwindles with the operation of new airports outside the metro. San Miguel Corp. is building the New Manila International Airport in Bulacan for completion in 2026, at the earliest.
Under the TOR, the transport chief promised to ensure recovery of investment and a reasonable rate of return for the private operator during the concession period.
Bautista added that with the amendment to the implementing rules and regulations (IRR) of the Public-Private Partnership (PPP) scheme, any dispute or issue between the government and private sector will go through arbitration.
“We will fast-track the conditions of the terms of reference. Also, we are happy to inform you that there was an amendment to the IRR of the PPP Law, which will address the issue that I have just mentioned. And also, will allow arbitration, in case there’s dispute between the PH government and the private sector,” he said in a separate statement, adding that such provisions are internationally adopted.
Still, Bautista is not discounting the possibility that NAIA will remain operational as its “very good location” could continue to attract high passenger volumes. He likened the situation to Haneda and Narita airports both located in Tokyo, Japan, pointing out that the construction of Narita airport did not take volume away from Haneda, and even increased it.
