-
The Manila International Airport Consortium (MIAC) consisting of six Philippine conglomerates and a US-based partner has submitted an unsolicited proposal for the upgrading of Ninoy Aquino International Airport
-
The over P100 billion proposal includes a significant upfront payment to the government and committed investments in new facilities and technology to transform NAIA into a world-class airport
-
MIAC targets NAIA to serve up to 62.5 million passengers per annum efficiently by 2028—more than double its currently constrained design capacity
A new consortium consisting of six Philippine conglomerates and a US-based partner has submitted a P100-billion proposal for the upgrade of Ninoy Aquino International Airport (NAIA).
The unsolicited proposal by the Manila International Airport Consortium (MIAC) includes a significant upfront payment to the government and committed investments in new facilities and technology to transform NAIA into a world-class airport, the group said in a statement.
MIAC is composed of 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 its proposed operational and technological improvements, NAIA will have the ability to serve up to 62.5 million passengers per annum efficiently by 2028—more than double its currently constrained design capacity, which stands at only 31 million passengers annually.
Pre-pandemic passenger traffic had already reached 48 million passengers in 2019, underscoring the need to upgrade the airport to meet growing demand.
Airports currently and previously owned or operated by members of MIAC include Mactan-Cebu, Clark, London Gatwick, Edinburgh, London City and Sydney airports.
“We are ready to put our combined resources forward in partnering with the government on this massive undertaking,” MIAC director Kevin Tan said.
“As the only large-scale operating gateway airport to the Philippines, the modernization and long-term sustainability of NAIA is a critical development priority for both the country’s public and private sectors. Recognizing the primacy of NAIA to the country’s economic growth, the consortium is bringing highly complementary expertise and making an unprecedented commitment to its sustainability and continued viability,” Tan, who is also chief executive officer of Alliance Global Group, Inc., added.
Josephine Gotianun Yap, MIAC director and FDC president and CEO, said: “We submit this proposal united in the belief that our gateway to the world needs to represent the best of who we are as Filipinos. Passing through our international gateway should be a seamless experience. We want the first thing that locals and foreigners alike see, when they arrive in the Philippines, to be a source of pride for all Filipinos. The consortium is confident that with additional financial resources as well as operating process and technology improvements, NAIA can help achieve that vision.”
Transportation Secretary Jaime Bautista earlier said they expect to complete the terms of reference (TOR) for the privatization of NAIA by end of the first quarter and that there are companies that have already signified their interest to the project.
To be included in the TOR is the rehabilitation of NAIA, which includes providing more public utility vehicles for passengers, redevelopment of areas such as the parking spaces, and improved and fully automated baggage handling system.
Earlier proposal
In 2018 a group comprising seven of the biggest Philippine conglomerates, called the NAIA Consortium, also submitted a P350-billion unsolicited bid to rehabilitate, upgrade, expand, operate, and maintain the country’s main air hub for 15 years.
Interestingly, most of the proponents of the NAIA Consortium also form part of the MIAC: Aboitiz InfraCapital, AC Infrastructure Holdings Corp., Alliance Global Group, Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings, Inc.
Metro Pacific Investments Corp, part of the NAIA consortium, is the only conglomerate not among the MIAC proponents.
The US partner Global Infrastructure Partners is a new player in MIAC.
The NAIA Consortium came to naught because government refused to consider revisions put forward by the group to make sure the project is viable. The consortium expressed difficulty obtaining project financing under the terms approved by the Investment Coordination Committee and the National Economic and Development Authority Board.
In 2020, the tandem of Megawide Construction Corp. and India’s GMR Infrastructure Ltd. was granted the original proponent status (OPS) to develop NAIA at a cost of P109 billion. But the unsolicited proposal also went kaput because the Manila International Airport Authority revoked the OPS status of the tandem. The Department of Transportation, mother agency of MIAA, in August 2020 said the consortium still needed to address issues over its financial capacity and joint liability in order for the project to proceed.
