ADB to DOTr: Extend deadline for NAIA bid submission

MANILA, Philippines — The Asian Development Bank (ADB) is recommending to the Department of Transportation (DOTr) to extend by a month the deadline for the submission of proposals for the privatization of the Ninoy Aquino International Airport (NAIA).

Acting as the transaction adviser, the ADB said it is best for the DOTr to move the deadline for the filing of bids for the privatization of NAIA to Jan. 29, 2024 from Dec. 27, 2023.

This way, prospective bidders for the project will be provided with additional time to prepare the requirements set by the government.

Further, the ADB said extending the deadline would show the commitment of the government in welcoming new players.

The multilateral bank warned that without an extension, the DOTr may lose foreign investors eyeing NAIA.

The ADB said foreign companies are reviewing the project details given to them by the DOTr and the Manila International Airport Authority (MIAA). Prior to submitting their bids, they also have to present their bids internally for final approval.

“They have asked for more time to request and analyze additional information from the MIAA and DOTr, and also to secure their internal corporate approvals, which will take longer in light of the upcoming holiday season,” the ADB said.

Without an extension in the deadline, the ADB believes that only the Philippine participants will be able to enter the bidding.

The multilateral bank hinted that these bidders are advantaged by their familiarity with NAIA, as both of them had submitted previous proposals to manage the airport.

In 2020, San Miguel Corp. expressed interest to operate and maintain the gateway, as the country waits for the completion of another airport in Bulacan.

This year the Manila International Airport Consortium (MIAC), made up of the largest local conglomerates, filed a P267 billion proposal to upgrade NAIA.

The DOTr rejected the offer tendered by MIAC in favor of a solicited process. In the end, both of them bought bidding documents for the project, signifying their interest in handling the gateway.

Earlier, Transportation Secretary Jaime Bautista said he wants to retain the original schedule of the bidding to stay on track to award the contract by the first quarter of 2024.

The winning bidder for the project will be granted a concession period of 15 years, extendable by 10 years, to operate and maintain NAIA with the objective of increasing its passenger capacity to 62 million per annum, from 32 million at present.