Infra, social programs benefit from NAIA deal
The group guaranteed a P30-billion upfront payment and P2-billion annual payments
The huge revenues to be generated from the Ninoy Aquino International Airport Public-Private Partnership, or NAIA-PPP, that places in private hands the operations of the country’s premiere gateway will be used to fund social and infrastructure projects, the Department of Transportation, or DoTr, said over the weekend.
The project is expected to yield substantial earnings for the government, with a projected P900 billion in profits from delivering significant upgrades to the airport.
The NAIA-PPP, throughout its 25-year agreement with the winning concessionaire, will allow the government to earn P36 billion annually.
Under the NAIA-PPP, the winning San Miguel Corp.-SAP Co. consortium will rehabilitate and upgrade the passenger terminals, commercial assets, and surface access facilities, and modernize the communications, navigation, and surveillance systems of the airport.
It will also provide a connection at the NAIA Terminal 3 to the Metro Manila Subway, deploy buses for boarding transfers, and improve the baggage handling systems.
Once these are realized, the overall passenger experience in the NAIA is expected to improve, while the annual passenger capacity of NAIA is likely to expand by at least 62 million from the current 32 million.
Last week, DoTr, led by Secretary Jaime J. Bautista, awarded the consortium led by tycoon Ramon S. Ang’s SMC as the winning bidder for the P170.6-billion project.
The consortium holding the contract is composed of diversified conglomerates San Miguel Holdings, Corp., Rmm Asian Logistics Inc., Rlw Aviation Development Inc., and Incheon International Airport Corp., the developer of the world-class South Korean air hub.
The group guaranteed a P30-billion upfront payment and P2-billion annual payments.
In comparison, the Manila International Airport Authority, or MIAA, alone has remitted P23.3 billion from the period of 2010 to 2023 or P1.78 billion annually.
Transport Undersecretary Timothy John R. Batan, who also sits as chairman of the agency’s Bids and Awards Committee, said the evaluation of the submitted bids went through a tedious process.
Detailed review of bids
“In the evaluation process, we don’t just receive the bids and then that’s it. There is a detailed evaluation that goes with the financial proposal. We looked at whether the financial proposal was consistent with the technical proposal.”
“We considered whether there is alignment. We looked at their financing plan to see if their financing sources make sense so they can deliver their promise,” Batan told reporters.
The turnover of operatorship to the private sector will take place in September, provided the timeline is followed.
The DoTr has already assured employees of the MIAA that their jobs will not be affected by the turnover.
The post-award requirements are expected to be completed by March. The Concession Agreement is expected to be signed also next month.
Bautista had pledged to ensure that the privatization process is transparent and fair, and that all stakeholders, including MIAA employees, are consulted and their concerns are addressed.