Various Philippine conglomerates had their unsolicited NAIA rehabilitation proposal rejected by the Marcos Jr. administration.
Instead, during a noontime Palace briefing on Tuesday, approval was given to the Transportation department’s concession plan, which included multiple infrastructure projects, including the DOTr’s solicited proposal.
The Asian Development Bank provided guidance for the proposal, estimating its cost at P170.6 billion, encompassing a 15-year concession period.
The Department of Transportation and the Manila International Airport Authority oversee the project, which also offers an optional 10-year extension of the concession to nearly double NAIA’s annual passenger capacity to 62 million per year.
The Manila International Airport Consortium’s 25-year concession proposal, amounting to P267 billion, faced rejection.
The proposal also involved an upfront concession payment of P57 billion to the national government, marking the most significant payment ever offered for a transport public-private partnership project in the country.
The consortium, consisting of Aboitiz InfraCapital, AC Infrastructure Holdings Corp., Asia’s Emerging Dragon Corp., Alliance Global – Infracorp Development, Filinvest Development Corp., JG Summit Infrastructure Holdings Corp., and Global Infrastructure Partners, submitted this proposal.
The DOTr’s public-private partnership proposal seemed less costly for the government at first glance due to the shorter concession period, though specific details were scarce.
NEDA Sec. Arsenio Balisacan conveyed that the solicited proposal aligned with the Build-Operate-Transfer Law, implying that no component of the approved project would be eligible for unsolicited project proposals.
Balisacan emphasized the urgency of these upgrades, as the national government considered tourism a primary driver of economic growth.
He asserted that prompt implementation of the improvements was essential, considering the solicited approach was even faster.
When selecting the DOTr’s proposal, the government took various factors into account, such as the concession duration and the government revenue share.
Despite the rejection, the MIAC understood the Marcos Jr. administration’s decision to pursue a solicited proposal, expressing unity with the government’s infrastructure priorities and dedication to revitalizing NAIA, acknowledging its significance as the country’s primary international gateway.
In June, the MIAC stated that a 25-year concession with the Philippine government would result in reduced fees and charges.
With approval granted, the process of handpicking rehabilitation proposals for the dilapidated airport nears its conclusion.
Back in February 2018, a consortium composed of Aboitiz InfraCapital, Inc.; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Metro Pacific Investments Corp. presented a similar plan, proposing a P350 billion concession spanning 35 years.
Eventually, the proposal was revised to P102 billion for a 15-year concession agreement.
However, this proposal was not accepted during the previous Duterte administration.
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