Gov’t to auction off NAIA mid-2015
September 29, 2014 at 11:57
by Chino Leyco
The government will auction off the redevelopment, operations and maintenance (O&M) of the Ninoy Aquino International Airport (NAIA) in the middle of next year, the Public Private Partnership (PPP) Center said.
Cosette V. Canilao, PPP executive director, said the agency has already received consultancy proposals from Pinsent Masons, Ernst & Young Solutions, International Technical Assistance Consultancy and Nathan Associates Inc.
“Four consultancy proposals are already submitted to us last Thursday, we’re now evaluating them with the Department of Transportation and Communications (DOTC). The consultancy will be awarded within the next two weeks,” Canilao said. PPP Center will pay $2 million to $3 million in consultancy fees for the NAIA project.
The winning consultancy company, Canilao said will conduct the feasibility study for the project, which is expected to begin by November this year and be completed by March 2015. The consultant will also act as the government’s transaction adviser.
“We’re hoping to bring it up to the National Economic Development Authority (NEDA) board by May next year. Once it’s approved, maybe by June or July [2015] we can begin the bidding process,” Canilao said.
The project involves the redevelopment of the country’s main international gateway, and the transfer of the NAIA terminals one, two, three, four and the planned five’s operations and maintenance to the private sector.
“The awarding will definitely happen during this administration and we can accelerate it further so that the implementation will also take place within this administration. This project is urgent as we all know the condition of our main airport,” Canilao explained.
Earlier, Finance Undersecretary Jose Emmanuel P. Reverente, said that the fiscal authorities will support the PPP Center should the agency decide to transfer the O&M of the NAIA to the private sector.
The DOTC also earlier said that the government was preparing for the privatization of the NAIA ahead of the expected increase in passenger traffic.
According to a recent study by Japan International Cooperation Agency (JICA), NAIA, one of Southeast Asia’s oldest airports, would hit over capacity starting next year.
Based on JICA’s estimates, Metro Manila’s lone international gateway will handle 37.78 million passengers in 2015, comprising 43.5 percent international travellers and 56.5 percent domestic passengers.
Since 2012, NAIA is operating above its designed normal capacity of 30 million passengers annually, resulting in congestion at the airport’s four terminals. Manila’s main gateway has a maximum handling capacity of 35 million passengers per year.
By 2040, JICA was projecting that passenger traffic at NAIA would reach 101.49 million.
To address the problem, JICA has been urging the government to start building a new international airport for Metro Manila, which would require a total investment of P435.93 billion.
Once completed by 2025, JICA was estimating that the new airport, recommended to be at Sangley Point in Cavite, could accommodate five million passengers and 400,000 aircraft movements annually.
Source: https://www.mb.com.ph/govt-to-auction-off-naia-mid-2015/
