Economic managers on Friday, Sept. 27, gave the green light to a proposal by seven of the country’s richest men to bring to world-class status the condition of the country’s main gateway, Ninoy Aquino International Airport (Naia).
In a text message, Socioeconomic Planning Secretary Ernesto M. Pernia said the Naia Consortium’s proposal was approved by the National Economic and Development Authority Investment Coordination Committee-Cabinet Committee (Neda-ICC-Cabcom) at a meeting on at least 10 projects.
Pernia, co-chair of the body, said public-private-partnership (PPP) proposals like Naia Consortium’s “are part of Build, Build, Build and will be appraised in accord with the overall infrastructure plan, appropriateness and feasibility.”
The Naia Consortium’s plan involved upgrading and operating the airport.
The plan, however, has one more hurdle to overcome—approval by the Neda Board which is chaired by President Rodrigo Duterte.
Awaiting Neda approval are five other unsolicited projects—the New Panglao Bohol International Airport, a 50-year integrated development plan for the Mactan-Cebu International Airport, an operate-add-transfer proposal for the Laguindingan Airport in Cagayan de Oro City, the Davao International Airport and operation, maintenance and facility upgrade for the Kalibo International Airport, the gateway to world-famous Boracay Island.
The Naia Consortium project found itself needing to hurdle a new policy by the Department of Transportation (DOTr) which required unsolicited offers to follow the template of Clark International Airport’s operation and maintenance contract.
Transportation Secretary Arthur Tugade had said that following a template would reduce the negotiation period for unsolicited proposals, adding that failure to comply would mean rejection of such offers.
The Clark Airport deal, bagged by a consortium led by JG Summit Holdings and Filinvest Development Corp. last year, was considered by the government as a good template as the private sector carried the burden for several major risks.
But last week, Pernia said the Clark Airport formula cannot be fully applied in the case of the proposed Naia rehabilitation.
“It cannot be strictly the same because it’s not just pure O&M [as in the case of Clark Airport]—it’s O&M plus rehabilitation [for Naia],” according to Pernia, who co-chairs ICC with Finance Secretary Carlos G. Dominguez III./TSB
The business headlines in under one minute
Don't miss out on the latest news and information.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.
For feedback, complaints, or inquiries, contact us.