BUSINESS CORRIDOR

Foreign investors, market analysts, including us journalists are keeping their  ears on the ground on who wound emerge as winner among the top three consortia bidding for the modernization and rehabilitation of the country’s first international gateway, the Ninoy Aquino International Airport (NAIA).

As I write this to comply with my Thursday deadline, the prequalification bids and awards committee, composed of nine people, is conducting an extensive assessment on the proposals submitted the top three bidders.

It was announced last week that San Miguel Corporation-SAP and Company, GMR Airports Consortium and Manila International Airport Consortium have been pre-qualified.

After this, the committee’s task is to assess if the respective offers matched the key requirements of the government as stipulated in the invitation to bid.

Foremost is the internal rate of return (IRR) or the revenue sharing, which must be sufficient enough to sustain the funding of the capital expenditures (CAPEX) for the modernization program and must be stand alone and independent of other projects.

As announced last week, the San Miguel-led consortium tops in revenue sharing, a generous 82.16 percent while the Aboitiz-Asia’s Emerging Dragon-JG Summit-led group was a bit tightwad at 25.91 percent. On the average was the Cavite Holdings-House of Investments consortium at 33.30 percent.

The sharing of gross revenue excludes the passenger charges/fees that the airlines give to Manila International Airport Authority (MIAA).

These charges/fees are already inputted in the ticket cost of the passenger.

The IRR must be at level that there’s financial flexibility for the proponent to have the capability to bank roll its operating expenditures.

From what I’ve gathered along the airport corridors, the bids and awards committee is awaiting inputs from the Asian Development Bank (ADB), the transaction advisor for the NAIA project. ADB provides the essential information based on their studies.

Department of Transportation (DOTr) Secretary Jaime “Jimmy” J. Bautista is detached from all the processes.

As the grantor of the multi-billion peso project along with the MIAA, he must “distance” himself.

The latest I heard is that the bids and awards committee already submitted their recommendation yesterday.

And today, the MIAA board with Mr. Jimmy will be deliberating on it  and declare the winning consortium.

As San Miguel President and Chief Executive Officer Ramon “RSA” S. Ang commented last week, the aim of his consortium is to elevate NAIA to a world-class standard that will be a catalyst for enhanced economic activities, especially tourism.

Speaking of world-class standard brings to mind the vision and mission of Los Angeles-based CSI Professionals Inc. President Marge Ordiales-Martinez.

At the official launch of Philippine-based CSI-MHO Global Foundation, Ms. Marge said that the non-stock, non-profit organization is envisioned and dedicated to “advancing the well-being of children and their families on a global scale.”

“Motivated by our deep-seated desire to give back to the global community, we envisioned a foundation that could transcend borders and address the diverse needs of children and families worldwide,” she explained.

As we watched the ensuing developments on both, it’s clear that both CSI and the winning consortium have one common denominator: to raise the country – in people and infrastructure – to a world-class standard.

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