Lethargic deal ends finally

The DoTr is now in talks with two other potential investors to favor the government’s plan to decongest the country’s main gateway

The six-member consortium vying for the rehabilitation and redevelopment of the Ninoy Aquino International Airport (NAIA) has formally accepted the termination of the original proponent status (OPS) and other approvals earlier granted to them.

The members of the group notified the stock exchange that they have received a letter from the Manila International Airport Authority (MIAA) on 10 July, saying that it is “terminating any further negotiations with the consortium on the NAIA unsolicited proposal.”

The MIAA responded to the consortium’s letter dated 06 July to the National Economic and Development Authority (NEDA) that the consortium will have difficulty obtaining financing for the proposal unless the terms and conditions are revised.

2 alternatives rise

Department of Transportation (DoTr) Assistant Secretary for Procurement and Project Implementation Ruben Reinoso had confirmed this development last week but did not elaborate on the reason for the withdrawal.

We’re not worried... We believe these other two proponents are willing to step up to the plate.

Department of Finance (DoF) Secretary Carlos Dominguez III also disclosed last week that the DoTr is now in talks with two other potential investors to favor the government’s plan to decongest the country’s main gateway.

Dominguez underscored that the two potential project proponents, which he refused to identify, are willing to sign an agreement with the government which is very similar to the terms originally set forth under the NAIA rehabilitation project.

“We’re not worried... We believe these other two proponents are willing to step up to the plate here,” he said.

The project‘s private consortium is comprised of Aboitiz InfraCapital, Inc; AC Infrastructure Holdings Corporation; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corporation; Filinvest Development Corporation; and JG Summit Holdings, Inc.

In February 2018, the NAIA consortium submitted an unsolicited proposal to expand, upgrade, and transform NAIA. It was approved by the National Economic and Development Authority board in November 2019.