Consortium awarded O&M contract for Clark International Airport

The North Luzon Airport Consortium (NLAC) of Changi Airports Philippines Pte. Ltd., the joint venture of the operator of Singapore Changi Airport, along with Filinvest Development Corporation, JG Summit Holdings, Inc. and Philippine Airport Ground Support Solutions, Inc., recently clinched the operations and maintenance (O&M) contract of the Clark International Airport.

The Bases Conversion and Development Authority (BCDA) in partnership with the Department of Transportation (DOTr) lauded the bid award to NLAC as a major accomplishment "considering that development plans for the Clark Airport was neglected for years."

The BCDA Special Bids and Awards Committee for the O&M contract conducted the bidding under the guidance of the International Finance Corporation of the World Bank (IFC-WB) as transaction adviser and the Public-Private Partnership Center (PPPC).

The bidding for the Clark airport O&M contract was aboveboard and no group was favorably chosen over another, stressed PPP Center Executive Director Ferdinand Pecson.

Significantly, the Clark International Airport was the first project to be implemented using the hybrid PPP mode to fast-track infrastructure development under the administration's Build Build Build program.

The Office of the Government Corporate Counsel and the Department of Finance (DOF) has given clearance to the concession agreement for the O&M contract.

This should protect, not only the interest of the present government, but also that of future governments from undue and contingent risks and liabilities.

Earlier, Finance Secretary Carlos Dominguez stated that DOF meticulously scrutinized the concession agreement to ensure the government would not incur unwarranted contingent liabilities, like what happened to the Mactan-Cebu airport contract.

“If you compare the guarantees given to the Cebu contract with what we have for the Clark and Bulacan, you will see a big difference,” he confirmed.

“We’re going to get the contract for Clark and for Bulacan airports with no government liability at all,” Dominguez pointed out.

These projects “certainly raise the bar on PPP projects", Socio-economic Planning Secretary Ernesto Pernia maintained.

NLAC’s financial bid offer of 18.25% annual gross revenue percentage share is almost twice the minimum rate set at 10% as approved by the NEDA Board.

The bid offer is more than 80 percent better than the minimum rate set, the PPPC observed.

Alsi, each NLAC consortium member comes with an extensive experience in property development, air transportation and airport operations, especially

Changi Airports Philippines Pte. Ltd., which is 100%-owned by Changi Airports International Pte. Ltd.

Singapore Changi Airport was ranked first in Skytrax’s top 100 airports for 2018. It was voted as one of the best airports in the world for six consecutive years.