MANILA, Philippines — The consortium of seven conglomerates remains in the running for the rehabilitation of the Ninoy Aquino International Airport (NAIA) despite a government deadline to finalize a deal lapsing last month.
Transportation Undersecretary for planning Ruben Reinoso told The STAR over the weekend that negotiations on the concession agreement of the P102-billion NAIA rehabilitation project are still ongoing.
“Consortium is still validating and reconciling details with the MIAA (Manila International Airport Authority),” he said.
In a speech in a conference in Clark, Pampanga last month, Transportation Secretary Arthur Tugade warned that he might be forced to cancel the unsolicited proposal and offer it to parties that are ready to accept the government’s terms and conditions if a deal is not finalized by January.
The MIAA, as the primary grantor, and the NAIA consortium are negotiating on the terms and conditions of the concession agreement based on the parameters prescribed by the National Economic and Development Authority (NEDA) board before a Swiss challenge for the project could take place.
Metro Pacific Investments Corp. (MPIC) president and chief executive officer Jose Ma. Lim said the real property tax issue needs to be addressed.
Lim said the RPT issue would have a significant impact on the consortium’s expected returns for the massive rehabilitation project.
But once the terms and conditions are agreed upon, MIAA will then have to submit the results of the negotiation to the NEDA board and the negotiated draft concession agreement to the Office of the Solicitor General and the Department of Finance for comments within 10 days from receipt of the draft concession agreement.
The unsolicited proposal by the consortium of seven conglomerates for the rehabilitation and upgrade of the NAIA secured the approval of the NEDA board chaired by President Duterte last November.
The consortium of MPIC, Aboitiz InfraCapital, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., and JG Summit Holdings Inc. holds the original proponent status for the project. This means it can match competitive counter-proposals if any during a Swiss challenge.
Should it bag the project, the consortium seeks to undertake the rehabilitation of the country’s main international gateway in three phases from 2021 to 2024.
The project seeks to help alleviate the worsening air traffic congestion at the NAIA and solve its capacity constraint.
It is also seen broadening NAIA’s role as a key economic and tourism driver for Manila and the whole Philippines by delivering best-in-class passenger experience as a capital city airport.