Clark airport O&M auction criticized

PRIVATIZING the operations and maintenance of Clark International Airport in Pampanga province is unwise and may result in higher passenger fares, a former Bases Conversion and Development Authority (BCDA) director said.

In a social media post, Max Sangil, whom former President and now Pampanga Rep. Gloria Macapagal Arroyo had appointed to the agency and stayed there until 2013, said privatization was “not really a wise move” and that it might be “more harmful than beneficial.”

This came amid reports that eight major companies bought bidding documents for the 25-year concession agreement to operate and maintain the airport, which is the first hybrid project under the Duterte administration’s “Build, Build, Build” infrastructure program.

For such projects, the government selects, finances and builds big-ticket projects through public bidding. Once finished, the projects’ operations and maintenance are auctioned off to the private sector.

Bidders should have a minimum net worth of P5 billion and must show proof that they could raise loans of at least P10 billion.

The eight firms are the consortium of Megawide Construction Corp. and India’s GMR Infrastructure Ltd., Metro Pacific Investment Corp., Filinvest Development Corp., San Miguel Holdings Corp., Prime Assets Ventures Inc., Central Luzon Infrastructure Consultancy Inc., GVK Airport Developers Ltd., and Groupe ADP.

Submission of bids and the awarding of the contract is set for July 20 and August, respectively.

“If operations [would] be in private hands, [in order to] recoup their investments…commercial and airside fees [would] be shouldered by the airlines. And where do you think the airlines [would] source the increase?” Sangil asked.

According to him, the airport is expected to hit 2.5 million passengers this year and 4 million in 2020.

The ex-BCDA official also said employees of the Clark International Airport Corp. (CIAC) were apprehensive about the matter after learning that agency officials had failed to explain to them the implications of the privatization—which BCDA Senior Vice President for Business Development and Operations Joshua Bingcang said had no basis. In a text message to

Bingcang said airport workers would be “protected under the terms for the operations and maintenance works of the winning concessionaire.”