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Manila Bulletin devider Philippines devider National devider Concepcion revives consortium proposal for NAIA modernization

Concepcion revives consortium proposal for NAIA modernization

Published Jan 2, 2023 01:47 pm

Following the glitch that halted all air travel within Philippine airspace on New Year's Day, Go Negosyo Founder Joey Concepcion suggested reviving a 2018 proposal by the private sector to form a consortium to modernize the Ninoy Aquino International Airport (NAIA).

NAIA (FILE PHOTO/MANILA BULLETIN)

In a statement, Concepcion said the proposal, which aims to decongest and increase the airport's capacity, would benefit the country.

"NAIA is strategically located, and any improvements made here will redound to so many benefits to the country," he said.

"I believed then, as I do now, that the private sector can contribute so much if allowed to participate," he added, noting that inefficiencies in the NAIA translate to big losses in business felt throughout the country.

Under the consortium's proposal, NAIA would have a 20-percent increase in efficiency, allowing it to become a world-class gateway. In addition, there will be no government guarantees and a moratorium on constructing another major airport.

In 2018, the consortium's unsolicited proposal was recommended for approval by the Department of Transportation (DOTr) to the Manila International Airport Authority (MIAA), the primary government agency for the project. By August of that year, the consortium secured from the Philippine government an original proponent status for its plan to rehabilitate the NAIA, and the National Economic Development Authority (NEDA) board approved it in November 2019.

However, in March 2020, then-DOTr Secretary Arthur Tugade said he would cancel the unsolicited proposal and offer it to parties ready to accept the government's terms and conditions if a deal is not finalized. In July 2020, the consortium withdrew the proposal due to unresolved issues with the government.

The consortium comprised some of the country's biggest conglomerates, namely 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.

Concepcion, who was responsible for forming the consortium, recalled that the idea was first put forward in 2017 when the country was preparing for the Association of Southeast Asian Nations (ASEAN) Summit.

"All of the conglomerates were interested in seeing the project push through," he said.

"We were all in agreement that connectivity is important, and even the tycoons who were not formally part of the group pitched in to see how they can help," he added.

Given the recent glitch, Concepcion hoped that the government could take another look at the proposed consortium.

"Having seen how badly key systems in our air transportation system need to be modernized and how severely any glitch can affect the whole country, I hope that this time, we can revive this proposal and see it through."

Related Tags

modernization Go Negosyo Joey Concepcion Ninoy Aquino International Airport private sector NAIA glitch consortium NAIA
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