NAIA Consortium to resubmit bid

MANILA, Philippines — The super consortium composed of seven conglomerates will resubmit its proposal to rehabilitate the Ninoy Aquino International Airport with a shorter concession period of 15 years instead of the initial plan of 35 years, as the airport is seen to be viable for only 10 more years. 

Transportation Secretary Arthur Tugade told reporters the NAIA Consortium’s move to have a proposal with a shorter concession period was discussed during the meeting with the group.

“We are having negotiations…They will resubmit on the basis of 15 (years concession) period,” he said. 

In his speech during the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. Mid-Term Regional Members’ Association Conference, Tugade said the 35-year concession period under the P350 billion proposal submitted by the 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. (MPIC) for the NAIA’s upgrade was too long. 

“My own feeling is, 10 years down the line, the viability of NAIA will be overran by events. What events? The improvement in technology, the continued congestion in the areas around NAIA. When that happens, we can convert that into a real estate development which would be bigger than BGC (Bonifacio Global City)… But that will be the time when NAIA will no longer serve its purpose,” he said. 

With the NAIA seen to last for only 10 years, he said the government would be willing to discuss the offer to upgrade the airport at a shorter concession period. 

Even as the NAIA Consortium would resubmit its proposal, he said the group’s offer would still be processed first by the Department of Transportation (DOTr). 

MPIC chairman Manuel V. Pangilinan said the NAIA Consortium is open to having a shorter concession period of 15 years for the rehabilitation of the airport.

“I think the consortium wants to see a 15-year concession period. I think eventually we’ll come up with something that is win-win for government and for the consortium,” he said. 

Earlier, NAIA Consortium spokesperson Jose Reverente said while the group was open to a shorter concession period, such would mean not having enough time to build a third runway.