Terminal Fee Bugs NAIA Consortium Proposal

NEDA Says Government Guarantee Not Allowed

19 February 2019

The National Economic Development Authority (NEDA) has formally returned the offer of NAIA Consortium to operate and expand Ninoy Aquino International Airport(NAIA) to the Department of Transportation (DOTr) DENYING THE OFFER due to perceived technical concerns on mandatory "Terminal Fee" structure proposal which according to the economy governing body is tantamount to a "Government Guarantee", in a meeting conducted on February 6.

DOTr is set to meet with the Naia Consortium this week to resolve some issues on its proposal to rehabilitate, operate and maintain the Ninoy Aquino International Airport.

The fact that it was denied by NEDA will entail the consortium to submit a new concession proposal to the government again otherwise decision will become final.

“NAIA Consortium may submit a new proposal to upgrade the country’s main airport again. There are provisions in the propose concession agreement that is questionable,” Transportation Undersecretary for planning Reuben Reinoso said.

The NAIA Consortium — composed of AC Infrastructure Holdings, Aboitiz InfraCapital, Inc., Alliance Global Group, Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings, Inc., and Metro Pacific Investments Corp. however argues that it’s not a government guarantee and it’s important for the bankability of the project. But NEDA doesn't think so.

The Naia Consortium secured an original proponent status from the DOTr in September 2018 for its ₱102-billion offer to expand, upgrade and operate NAIA airport under a 15 years proposed concession agreement. The concession offer was brought to NEDA which denied it due to questionable provisions.

Should NAIA consortium revised their concession agreement, the proposal will be endorsed back to NEDA Board for approval before it will be publish in a newspaper of general circulation to invite other bidders who wished to challenge the proposal through the mandated Swiss challenge.

Naia Consortium hoped to start work on the upgrades by September this year. The setback will have the consortium move their timetable by second half of next year.

Naia Consortium offers to increase capacity of NAIA airport to support 65 million passengers per annum. It will also buy navigational equipments to support increase of hourly takeoff and landing movements to 52 movements per hour. Among the offer includes plans to build a “people mover” to link Naia’s passenger terminals. ​

3 comments:

  1. If it take the group to come back with a final response in three months. The swiss challenge may be done on Bulacan. Which will reduce the bidder years on NAIA sole use before the new airport opens. I find it hard to believe that they will spend a lot of money when there is a possibility of closing the airport in ten years. But we will know in a year if the new airport is going big time in construction.

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  2. Why need to expand NAIA is the Bulacan Airport is now ready to build?

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  3. They can have a dual-hub system. Manila for domestic and business-oriented flights, with Bulacan and/or Clark for international flights. Kind of like Heathrow/Gatwick/City, Incheon/Gimpo, or Narita/Haneda.

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