The consortium of business tycoons seeking to upgrade and operate Manila’s Ninoy Aquino International Airport (Naia) has submitted a revised contract to the government as negotiations enter the final stretch.
Remaining issues included real property tax (RPT) payments, the continued employment of airport workers and safety issues on an airport bus system, or “people mover,” that would link the passenger terminals in the sprawling 600-hectare complex in Metro Manila, the Department of Transportation’s Ruben Reinoso said. Reinoso is undersecretary for planning.
The government and a private sector group called Naia Consortium are hoping to finalize the contract and beat the 80-day deadline set by the board of the National Economic and Development Authority, which approved the P102-billion proposal toward the end of 2019.
“We can do it before the end of March. That’s what the secretary wants,” Reinoso, who was referring to Transportation Secretary Arthur Tugade, told reporters during the department’s regular Transport Talks forum.
A Naia Consortium member told the Inquirer they intended to address all issues and that
a detailed review was set for this week.
Reinoso said the government negotiating panel wanted to ensure Naia Consortium would retain the airport’s workers in line with their original commitment. Citing their last discussions, Reinoso said the consortium promised to do so for only 180 days.
The panel also wanted Naia Consortium to address safety and security concerns on the proposed people mover, which would take the form of a bus rapid transit system.
Finally, the parties would also have to clarify the size of the taxable property to be turned over to the consortium. The Manila International Airport Authority (MIAA) is exempt from paying the RPT but levies will be applied once the private sector takes over.
Jose Ma. Lim, CEO of consortium member Metro Pacific Investments Corp. (MPIC), warned the RPT would account for over half of the expected return over the 15-year concession.The consortium proposed the national government should share in the burden by offsetting payments to MIAA, Reinoso explained. This, however, was not allowed, he said.
“They are now defining the boundaries of the property,” Reinoso said, adding that RPT negotiations should be between the Naia Consortium and local government units. Once negotiations are successful, the project can move forward with a Swiss or competitive challenge.
Naia Consortium’s proposal to transform Naia into a world-class gateway has been under review or negotiations over the past two years. The project will increase passenger capacity and flights while easing congestion currently plaguing the gateway.
Besides MPIC, consortium members include Ayala Corp., Aboitiz Equity Ventures, Alliance Global Group Inc., Asia Emerging Dragon Corp., Filinvest Development Corp. and JG Summit Holdings Inc. Its technical partner is Singapore’s Changi Airports International. INQ