DESPITE compelling reasons on the need to ‘relocate’ the country’s premier airport, the government is dead serious in pushing through with what has been referred to as modernization of a facility that has been consistently ranking in the Top 10 Worst Airports in the world.
According to the Department of Transportation (DOTr), bidding for the P170.6-billion Ninoy Aquino International Airport (NAIA) modernization project will definitely push through despite seemingly significant incidents this year contributing to the bad reputation of NAIA.
As it is, DOTr’s pre-qualifications, bid and awards committee has already issued a bulletin of the bid submission date setting December 27, for which the Asian Development Bank (ADB) – in its capacity as the designated transaction adviser for various government projects (including NAIA modernization), asked the DOTr to extend the process at least until January 29 next year as leverage for better offers from new and other prospective bidders.
According to a previous report, the DOTr made a commitment to encourage new players and foreign investment in Philippine public-private partnerships, but cited the need to ensure that the effort would not cause delays to NAIA's modernization and the PPP (public-private partnership) program.
NAIA has long been nursing on the wear and tear of the aging facilities which include the 69-year-old Runway 06/24 and taxiways, the 42-year-old Terminal 1, the 60-year-old control tower and runway 13/31 which dates back during World War II.
NAIA's latest expansion referred to as Terminal 3 is already 15 years old.
ADB Favors Extension
According to the ADB, there were eight entities which have signified its intent to place a bid for the P170.6-billion NAIA modernization project. Of the eight, only six actually participated in the pre-bidding procedures.
However, two have so far complied, while the rest – including the 100% Filipino-owned and controlled San Miguel Corporation – expressed willingness to make a better offer provided that they would be given sufficient time to gather more information from the government and additional time to prepare their bids.
"If the bid date of 27 December 2023 were to be retained, we expect two prospective bidders with participation by large local corporations to submit bids. They have both submitted unsolicited proposals for NAIA in the past and are thus significantly more familiar with NAIA than the other four prospective bidders," ADB said in its statement released earlier.
"We strongly believe that extending the bid submission date would attract more bids, thus resulting in greater competition and a better financial outcome for the government."
Eight Interested Groups
According to the DOTr, eight entities had bought NAIA bid documents – the Manila International Airport Consortium (MIAC), San Miguel Corporation, India's GMR Group, South Korea's Incheon International Airport Corp., Turkish firms Cengiz Insaat Sanayi ve Ticaret A.S and the Limak Group, Spark 888 Management, and the Asian Airport Consortium.
MIAC, which is composed of some of the country's biggest conglomerates, earlier submitted an unsolicited proposal to modernize NAIA. The government, however, rejected its offer and instead urged MIAC to participate in the public bidding.
The winning bidder gets a 15-year concession with an option for a 10-year extension. It would likewise be in control over NAIA’s airside and landside operations, rehabilitation, optimization, and enhancement of the facilities required to efficiently operate the country's premier international gateway.
Contract is slated to be awarded by the first quarter of next year, with financial closing targeted during the next three months.
Consistently on the List
Many however are raising doubt as to whether the government is dead serious in the NAIA modernization in view of the ongoing land development for SMC’s P740-billion “New Manila International Airport” in Bulakan, Bulacan.
Far from NAIA, SMC claims that the new international gateway will be far better than what has been consistently in the Top 10 Worst Airports in the world.
In fact, travel website “Sleeping in Airports” named NAIA as the most notorious in a list of 10 airports around the globe for its poor facilities, outdated infrastructure, and lack of cleanliness.
In another survey conducted by travel website “Pure Evasion” saw NAIA on the fourth spot of the world’s worst airports. The criteria used to make this ranking were: comfort, cleanliness, (free WiFi, choice of restaurants, toilets, etc.), and the travel service.
Casago, a vacation rental management firm, meanwhile named NAIA among the worst airports in Asia due to passengers forced to wait in long lines.
What made it worse however are the power glitches that paralyzed the NAIA operation twice earlier this year.
Pinoy Company Restricted
However, SMC may kiss goodbye its indicated interest on the NAIA modernization in view of an inserted restriction on the basis that the 100% Filipino-owned conglomerate already has significant interest in the Greater Capital Region – apparently referring to Ang’s San Miguel Aerocity in Bulakan, Bulacan.
Interestingly, Ang did not content the restriction and instead focused on fast-tracking the construction of what he referred to as the “New Manila International Airport.”
According to a corporate dispatch farmed out by SMC, NMIA would be able to begin commercial operations by 2026 as overall progress at the airport project had passed the halfway mark at 68.92 percent as of mid-2023.
“The San Miguel team continues to work on the airport master plan along with the critical components of the airport,” SMC said in the document.
SMC said site clearance, land filling works, and ground improvement works stood at 98.3 percent, 66.59 percent and 66.54 percent, respectively.
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