Only Three Bids to Rehabilitate NAIA Pass the Department of Transporation's Compliance Test
The Department of Transportation has narrowed down the technical proposals to rehabilitate the Ninoy Aquino International Airport to three. After a compliance test for the P170.6 billion privatization deal, the DOTr approved the proposals of Manila International Airport Consortium (MIAC), GMR Airports Consortium, and SMC SAP & Co. Consortium.
The MIAC is composed of GIP EM MIAC Pte. Ltd, Aboitiz InfraCapital Inc., AC Infrastructure Holdings Inc., Alliance Global Infracorp Development Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., and JG Summit Holdings Corp.
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Meanwhile, GMR Airports Consortium is a partnership among GMR Airports International BV, Cavitex Holdings Inc., and House of Investments Inc.
Finally, SMC-SAP and Co. Consortium consists of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp.
At least six groups have expressed interest to join the bid. Besides the three mentioned, the three others are Spark 888 Management, Asian Airport Consortium, and Cengiz Insaat Sanayi ve Ticaret A.S.
The proposal found to be non-compliant was that of Asian Airport Consortium’s, which consists of Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders International Inc., and PT Angkasa Pura II.
Other groups that participated in the pre-bid conference include Hyundai Engineering, Itochu Group, Makati Development Corp., Marsh Philippines, Mitsubishi Group, Pulse Consulting, EY Consulting, Samsung C&T Group, Turner and Townsend, Aeon, Cavitex, Bouygues Group, China First Highway Engineering, First Balfour, and Macquarie Capital, among others.
The DOTr started the opening and evaluation of the financial proposals for the NAIA Privatization deal on Thursday (February 8). It’s a Rehabilitate-Operate-Expand-Transfer (ROET) deal led by the DOTr and the Manila International Airport Authority (Miaa). Under the terms of reference for the deal, the winning consortium shall provide an upfront payment of P30 billion to the government as premium and another P2 billion in annuity payments. It’s also required to remit a certain percentage of the revenues to the government. This will be the main bid parameter for the auction, and the higher the proposed share of the government in the NAIA’s revenues are, the better.
The DOTr’s initially set the concession timeline for 15 years with an option to extend by 10 years as long as the concessionaire is “not in flagrant violation of the concession agreement.”
The NAIA Public-Private Partnership (PPP) project seeks to rehabilitate and expand the current three-terminal airport, which is the country’s main gateway. Once completed, NAIA’s capacity shall be expanded from 35 million passengers per annum (MPPA) to 62 MPPA.
The DOTr said it aims to award the P170.6-billion PPP deal by February 15. The agency will then evaluate the compliance of the post-award requirements. It targets to sign the concession agreement on March 15.
