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Manila Bulletin devider Philippines devider National devider All set for NAIA privatization as 6 firms prepare for bidding, DOTr says

All set for NAIA privatization as 6 firms prepare for bidding, DOTr says

Published Sep 23, 2023 12:42 am

Department of Transportation Secretary (DOTr) Secretary Jaime Bautista is optimistic that the improvement and modernization of the Ninoy Aquino International Airport (NAIA) under the management of a private sector will spur economic growth as it would open opportunities for investments.

The improvement and modernization of the NAIA, the Philippines’ main gateway, will be done through a Public-Private Partnership (PPP) wherein Bautista said at least six companies have bought bid documents for the airport’s privatization.

Bautista also led a roadshow in some parts of the world to encourage foreign investors to participate in the bidding for the NAIA privatization.

“We had more than 200 participants in Paris. In Paris we had two days of roadshow also. Those who attended in person and online is around 50 in Singapore,” said Bautista.

Currently, Bautista said at least six companies have bought bid documents: the GMR, San Miguel, the Manila International Airport Consortium, SPARC 888, Asian Airport Consortium, and IGA of Turkey.

Deadline set

Bautista said he expects the six companies to participate during the bidding wherein the deadline for submission of documents was set on Dec. 27.

“The awarding of the winning bidder for the NAIA modernization is expected to be announced in the first quarter of 2024,” said Bautista.

Under the NAIA PPP concessionaire agreement, the winning bidder will be given 15 years to rehabilitate the airport’s passenger terminals and airside facilities; develop commercial assets and utility systems; provide surface access facilities that enables intermodal transfer at the airport, inter-terminal passenger transfer facilities and services, among others.

In extending the agreement for another 10 years, the DOTr will discuss with the concessionaire a possible extension on the eight year of the contract based on several key performance indicators (KPIs), according to Undersecretary for Planning Timothy John Batan.

“The extension will be conducted or the discussion will be on year 8. The extension is based on performance by the winning bidder, based on certain KPIs,” Usec. Batan said.

Batan explained that if the concessionaire fails to fulfill one of the conditions set under the KPIs, the DOTr will not grant an extension for another 10 years.

“If there is a flagrant violation of the concession, there will be no extension. But if there is no flagrant violation, there will be an extension,” he explained.

Among possible KPIs are the same KPIs for Mactan-Cebu International Airport (MCIA) and Clark International Airport (CRK) which include the amount of time for check-in, the amount of time for immigration and security checks.

Improved services

Under the 15-year NAIA PPP concession agreement, the concessionaire is expected to rehabilitate the airport’s passenger terminals and airside facilities; develop commercial assets and utility systems; provide surface access facilities that enables intermodal transfer at the airport, inter-terminal passenger transfer facilities and services; connection from the Metro Manila Subway station to NAIA T3; overall upliftment and beautification of the airport; and incorporate climate change and climate adaptation measures for airfield resilience and overall sustainability of the airport.

The concessionaire is also expected to improve and modernize the Communications, Navigation & Surveillance (CNS) systems, remote digital tower system, ATC system upgrade, and airfield network, including fiber upgrades, emergency equipment as well as technology enhancements to improve efficiency.

Once the modernization of NAIA is completed, Bautista said its runway capacity will increase at least 48 air traffic movements at peak hourly rate and its passenger capacity is expected to accommodate 62 million passengers annually.

“We are pursuing the development of the NAIA to increase its capacity to accommodate more flights and passengers, enhance the airport’s security and efficiency, while attracting constant flow of revenue streams,” said Bautista.

“It promises economic growth, improved infrastructure and a world-class travel experience,” he added.

Related Tags

NAIA privatization DOTR
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