NAIA Consortium submits new plan using Clark model

MANILA, Philippines — The consortium of seven conglomerates planning to rehabilitate the congested Ninoy Aquino International Airport (NAIA) has submitted a proposal patterned after the Clark International Airport operations and maintenance contract to comply with the government’s order.

NAIA Consortium spokesperson Jimbo Reverente said the group submitted yesterday a revised proposal to the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA), two weeks since it was returned by the government to align its provisions and language with the Clark International Airport contract.

The consortium’s submission was confirmed by DOTr Undersecretary for planning Ruben Reinoso, who said the revised proposal was received by the agency Friday morning.

“We complied with the Clark template,” Reverente said. 

Reinoso said the DOTr would review the submission to see if the group has complied and aligned its proposal with the Clark template.

Once the proposal is found compliant, it would then again be forwarded by the DOTr to the National Economic and Development Authority for approval before the project undergoes a Swiss challenge.

The NAIA Consortium, which has been granted the original proponent status (OPS) for its P102-billion unsolicited proposal to rehabilitate, upgrade, expand, operate and maintain the NAIA for 15 years, will have the right to match better offers once a Swiss challenge is undertaken for the project.

The consortium – composed of Aboitiz InfraCapital, 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. has been granted the OPS by the MIAA board in Aug. 6, 2018 and was officially awarded with the OPS on Sept. 13. 

The government returned to the consortium its unsolicited offer early this month following  a decision to require all proponents of airport projects to pattern their draft concession agreements after the operation and maintenance deal for Clark International Airport.

Under the DOTr’s policy, the original proponent is being given 60 days to comply with requirements, otherwise, its OPS would be withdrawn and the agency will entertain other proposals.

A 25-year concession agreement to operate and maintain the Clark International Airport was signed last January between the government and the North Luzon Airport Consortium composed of Changi Airports Philippines Pte. Ltd., Filinvest Development Corp., JG Summit Holdings Inc., and Philippine Airport Ground Support Solutions Inc.

With the successful bidding of the Clark International Airport last December, the government wants the standards of the said contract to be followed.

However, the condition that would trigger compensation or support for the private concessionaire, otherwise known as a material adverse government action (Maga), has been deemed contentious to some proponents.

Under the Clark contract, proponents will only be compensated for adverse government action from the Executive branch and not any change in future laws. they must also remove the provision stating that adverse government action could be considered force majeure.

Asked on if the consortium still has issues regarding the Maga, Reverente said “no more.”