NEDA OKs NAIA rehab proposal

MANILA, Philippines — The Investment Coordination Committee-Cabinet Committee (ICC-Cabcom) of the National Economic and Development Authority (NEDA) has approved the unsolicited proposal for the rehabilitation and operation of the Ninoy Aquino International Airport (NAIA).

This was confirmed by Socioeconomic Planning Secretary Ernesto Pernia last Friday.

A NEDA source said the ICC-CabCom approved the finalization of the draft concession agreement for the project by the Department of Transportation (DoTr) with the consortium based on the parameters cleared during the meeting.

This includes the shortening of the original proposal to rehabilitate, operate and maintain the aging NAIA from 35 years to only 15 years.

The source said the project would “basically be an optimization of the existing airport” in which the proponent “will introduce new technologies not yet used in NAIA” to accommodate the increase in passengers.

Pernia said that after this, the project would be referred to the NEDA Board, which is chaired by President Duterte, before it can proceed to the Swiss challenge process.

Officials said this is a project that the government wants to be done “as early as possible.”

The P102-billion proposal was put forward by a super consortium composed of Aboitiz InfraCapital, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc. and Metro Pacific Investments Corp.

Meanwhile, the approval for the proposal of Aboitiz InfraCapital to upgrade, operate and maintain the New Panglao Bohol International Airport was deferred because the government is now considering to take on the addition of capacity and just letting the private sector take over its operations and maintenance (O&M).

The NEDA source said the firm has another proposal for the O&M component alone that may also be reviewed by the ICC-CabCom.

The source said DOTr is now exploring means of funding the addition of capacity either through loans or government funds.

This, however, is considered a priority project that needs to be carried out as early as next year because the Bohol airport is already suffering from capacity constraints.