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Transportation Secretary Jaime Bautista says NAIA privatization terms of reference are being finalized and should be ready for submission by June
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The Department of Transportation would move forward with the NAIA privatization in H2 2023 if Asian Development Bank would be able to submit its TOR by then
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ADB is still sounding out the market about the airport privatization to gather insights from private firms on preferred TOR conditions
Proposed terms of reference (TOR) for the privatization of Ninoy Aquino International Airport (NAIA) are being finalized and should be ready for submission in June or earlier, according to Transportation Secretary Jaime Bautista.
The Department of Transportation (DOTr) would move forward with the NAIA privatization in the second half of 2023 should the Asian Development Bank (ADB) be able to submit its proposed TOR by June, Bautista told reporters in an interview.
The TOR contains a list of requirements that proponents of the NAIA privatization must meet, and defines the conditions for turning the airport to the private sector, including the concession period and revenue sharing.
“The ADB is still finalizing [the requirements]. In a few months there will be developments. Hopefully, before June we’ll be able to finalize the terms of reference,” Bautista said.
The transport chief said ADB is still sounding out the market about the airport privatization to gather insights from private firms on their preferred conditions for the TOR.
The multilateral agency is also evaluating future air traffic at NAIA to assess how profitable it would be to entice investors to the privatization program.
“The ADB is doing market sounding, meaning, it is checking the preference of investors because that should be studied closely for the government to secure competitive proposals. Also, the ADB is completing a traffic study. It is one of the bases in preparing the terms of reference,” Bautista said.
On the other hand, the DOTr has submitted to the Investment Coordination Committee (ICC) the revised proposal of Aboitiz Group to operate and maintain regional airports. In particular, the group wants to upgrade the gateways in Bohol and Laguindingan.
The DOTr is waiting for the revised proposals for the privatization of the airports in Bacolod, Davao, Iloilo and Puerto Princesa that the agency will forward to the ICC for evaluation and approval.
The Marcos administration will turn over the operations and maintenance of multiple airports to the private sector to improve aviation infrastructure across the country and trim its fiscal deficit by cutting expenses.
For 2023 alone, P1 trillion worth of airport projects are to be finished by both the public and private sectors.
