7 big Philippine firms submit unsolicited proposal to expand NAIA

February 13, 2018

Seven big Philippine conglomerates formally submitted an unsolicited proposal to the Department of Transportation (DOTr) to rehabilitate and expand the capacity of the Ninoy Aquino International Airport (NAIA) for P350 billion, a disclosure to the Philippine Stock Exchange (PSE) said.

Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corporation, Alliance Global Group Inc., AEDC, Filinvest Development Corporation, JG Summit Holdings, Inc. and Metro Pacific Investments Corporation have a combined capitalization of over P2.2 trillion signed a memorandum of agreement formalizing the consortium.

The group will be initially called NAIA Consortium, the PSE disclosure said Monday.

The project is divided into two phases – Phase 1 includes improvements and expansion of terminals in the current NAIA land area, while Phase 2 involves the development of an additional runway, taxiways, passenger terminals and associated support infrastructure. The group is proposing a 35 year concession period.

Jose Emmanuel Reverente, consortium spokesperson, said in a press conference Tuesday the group will be spending P100 billion for Phase 1 and P250 billion for Phase 2.

"We expect phase 1 to complete in 48 months that would double the capacity of NAIA from 30 million to 65 million," said Reverente.

He said the consortium tapped Changi Airports International Pte. Ltd., to provide technical support in master planning, operations optimization and commercial development, the group is committed to develop a modern airport complex and meet the long-term passenger demand at NAIA.

He added the proposal includes a people mover that would link all three terminals and connect NAIA to the existing mass transport system in Metro Manila, as well as a third runway.

“The proposal involves expanding and interconnecting the existing terminals of NAIA, upgrading airside facilities, and developing commercial facilities to increase airline and airport efficiencies, enhance passenger comfort and experience, and improve public perception of NAIA as the country's premier international gateway,” Reverente said.

Construction of the additional runway will ensure capability of NAIA to serve as Manila’s gateway,bringing potential capacity up to 100 million passengers per year from over 40 million passengers last year.

The upgrades will elevate NAIA to the level of major regional airports such as Changi in Singapore and Suvarnabhumi in Bangkok and will become a viable transit hub for the ASEAN region.

Louie Ferrer, president of GMR Megawide Cebu Airport Corp., said they will participate with Social Security System (SSS) in the development of Philippine airports and this includes NAIA.

" The government and the people now have the choice between a number of airport proposals and which ones offer the best value. This kind of competition is healthy for the infrastructure sector,” he said.

"Our participation comes from our experience in operating and developing Mactan-Cebu Airport, which has transformed from a small airport into one of the best in Asia Pacific in the category of less than 10 million passengers," added Ferrer. DMS