Philippine- In a momentous stride towards the rejuvenation and expansion of the Philippines’ busiest gateway, the Public-Private Partnership (PPP) Center declared on Wednesday the commencement of public bidding for the Ninoy Aquino International Airport (NAIA) PPP project. This ambitious endeavor, led by the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA), seeks to revitalize, operate, optimize, and maintain NAIA through a comprehensive Rehabilitate-Operate-Expand-Transfer (ROET) arrangement.
Guided by the legal framework of Republic Act No. 6957, as amended by Republic Act No. 7718, commonly referred to as the Build-Operate-and-Transfer Law (BOT Law), and its recently revised 2022 Implementing Rules and Regulations (IRR), the projected cost for the NAIA PPP project stands at an estimated PhP170.6 billion. Encompassing all facets of airport infrastructure, from runways to terminals (Terminal 1, Terminal 2, Terminal 3, and Terminal 4), the project aims to usher NAIA into a new era of efficiency and modernity.
The National Economic and Development Authority (NEDA) Board has granted its approval for the project, foreseeing a substantial enhancement in the overall passenger experience and service quality at NAIA. This ambitious initiative seeks to elevate NAIA’s passenger capacity from the current 33.2 million to an impressive 62 million annually.
A pivotal Pre-Bid conference for the NAIA PPP project was orchestrated by the collaborative efforts of the PPP Center, DOTr, and MIAA. Emphasizing the urgency of NAIA’s modernization, DOTr Secretary Jaime Bautista highlighted that it is the sole major airport in Metro Manila surpassing its rated capacity. The privatization of NAIA is poised to follow the completion of the contract’s terms of references.
Bautista underscored the critical nature of modernizing NAIA, considering its current limitation to approximately 40 to 44 aircraft movements per hour. With an optimistic outlook, he expressed that privatization would empower NAIA to boost its aircraft movement capacity to 50 or even 55 per hour, leveraging cutting-edge technologies. This strategic move towards privatization aligns seamlessly with amendments to the BOT Law’s IRR, streamlining dispute resolution through arbitration in cases involving the government and the private sector.
President Ferdinand R. Marcos has signaled his intent to propel public-private partnerships for infrastructure development and local projects, aiming to stimulate the economy and create jobs. This decision closely follows amendments to the BOT Law’s IRR, designed to strike a balance between public interest and the private sector’s objectives in realizing the country’s development goals.
As the NAIA PPP project advances towards the procurement phase, the latest information spotlights three prominent potential bidders: GMR Airports from India, San Miguel Corporation from the Philippines, and the Manila International Airport Consortium (MIAC). These entities have received invitations to qualify and bid for the 25-year PPP contract, with the bidding procedure slated for finalization by the first quarter of 2024.
The government’s proactive approach is evident in the pre-bid conference held on September 22, 2023, coupled with one-on-one meetings with prospective bidders from October 9 to 13 and November 6 to 10. This meticulous strategy aims to ensure a transparent and competitive bidding process, attracting reputable firms equipped with the expertise to breathe new life into NAIA by revitalizing, operating, optimizing, and maintaining its facilities.
In summation, the Ninoy Aquino International Airport PPP project represents a momentous stride towards the modernization and expansion of a pivotal transportation hub in the Philippines. With the engagement of esteemed international and local entities, the project holds the promise of transforming NAIA into a more efficient and passenger-friendly airport, thereby making significant contributions to the overall development of the country’s aviation sector.
Source:
The Public-Private Partnership (PPP) Center
Centre for Aviation
