State auditors question delay in NAIA rehabilitation

MANILA, Philippines - Government auditors are questioning the delay in the implementation of the Ninoy Aquino International Airport (NAIA) Terminal 1 rehabilitation project despite the availability of funds.

The Manila International Airport Authority (MIAA) received P1.102 billion from the Department of Transportation and Communications (DOTC) in December 2011 for the rehabilitation of NAIA Terminal 1, which was voted again recently as the worst airport in the world by the travel website, Sleeping in Airports.

Records show that on Dec. 29, 2011, the DOTC signed a memorandum of agreement (MOA) with MIAA for the repair of NAIA Terminal 1.

Under the agreement, the DOTC would release P1.160 billion from the National Government to the MIAA.

The MIAA shall prepare the terms of reference, implement the project components, make payments and maintain the project after the turnover of the funds by the DOTC.

The Commission on Audit 2012 report released over the weekend noted that the DOTC transferred P1.102 billion to MIAA’s Land Bank account on Dec. 24, 2011.

On March 30, 2012, the amount was transferred to the Bureau of Treasury (BTr) while the implementation of the project was still in process.

“Our verification of accounting records disclosed that the project fund has remained unutilized since its transfer to MIAA. This inclines us to presume that the project has not been initiated,” state auditors said.

“Although we are aware of several rehabilitation works being conducted at Terminal 1, we believe that these are not related to the NAIA Terminal 1 rehabilitation project,” they added.

The MIAA management has been required to submit the status of the project.

In response, MIAA officials told COA that the Notice of Award for the consulting services for the Review of the Performance-Based Structural Retrofit Design for NAIA Terminal 1 was issued by the DOTC on May 17, 2013 in favor ARUP Philippines.