8 July 2020
The Department of Transport (DOTr) has rejected the financial changes to the proposed redevelopment of the Ninoy Aquino International Airport with finality.
Ruben S. Reinoso, Jr., Transportation undersecretary for planning and project development, said that NAIA consortium which is composed of Aboitiz InfraCapital, Inc; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; and JG Summit Holdings, Inc., refused the terms and conditions approved by NEDA.
“Ayaw nila yung terms and conditions na inapprove ng NEDA Board, and they wanted it changed. We stood our ground.” Reinoso said.
Reinoso said NEDA approved an 80-day re-negotiation period after the NEDA Board’s approval of the project in November last year but the government stood on its position.
"Their proposal is technically dead. There was nothing to negotiate anymore." he said.
In separate disclosures to the Philippine stock exchange, NAIA Consortium disclosed that the government thumbed down the “consortium proposed changes to update the NAIA Project.”
“Unfortunately, the government indicated that it is not willing to accept most of the Consortium’s proposed options and the Consortium can only move forward with the NAIA Project under the options it has proposed,” NAIA Consortium said.
According to DOTr, the P102-billion NAIA rehabilitation project will instead be implemented by the government where it will build the long delayed Terminal 5 and interconnection project.
In the Consortium disclosure, the group said the changes in its proposal would be critical to make the project viable amid the COVID-19 pandemic.
“The far-reaching and long lasting consequences of the coronavirus pandemic on airline travel, airline operations and airport passenger traffic necessitated a review of the assumptions and plans to ensure that the NAIA Project will be viable in the new normal,” NAIA Consortium said.
This is good news!!
ReplyDeleteThe NAIA consortium proposal has been being passed back and forth between the government and the proponents for so long already...which makes you think that something is not right with it--and at the very last minute, another proposed change is submitted.
ReplyDeleteIn as much as we need to upgrade NAIA--I somehow think this was the right decision.
With the current pandemic situation, no business in their right mind will agree to the terms. The reality is a lot of businesses are now asking to amend their contracts and this is no exception. The rehabilitation will never push through if the pandemic is not solved first
ReplyDeleteYou did not get the point right. First of, the proposal was already rejected by November 2019 long before Covid 19. Proponent were given the chance to improve offer but did not do so. Decision to junk offer came out January 2020. Also long before covid19 struck the Philippines. Did covid19 changed the situation? It does not. A three year setback can be offset by extension at the end. So it would still come out beneficial to the proponent.
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