The government is willing to extend the contract terms for the rehabilitation of Ninoy Aquino International Airport (Naia) while the air sector reels from the COVID-19 pandemic, presidential adviser for flagship programs and projects Vivencio B. Dizon said.
“We are open to lengthen the terms from the original Neda (National Economic and Development Authority) Board-approved 15 years, to 25-30 years” of concession, Dizon told a webinar held by Standard Chartered Bank Friday.
Dizon added that the government was also open to deferring its revenue share while the air sector tries to get back on its feet.
“These things are now in discussion with the private-sector proponent,” Dizon said.
Dizon was referring to Megawide Construction Corp., which in July was granted original proponent status to redevelop the country’s main gateway after a consortium of seven tycoons backed out of the project.
Noting that airports were among the most badly hit by a pandemic due to reduced global and local travel, Dizon said the government was willing to renegotiate contract terms for airport projects in the pipeline.
Dizon earlier told the Inquirer that the government wanted private-sector proponents of big-ticket infrastructure projects to recover their investments in consideration of the harder times wrought by COVID-19.
The updated list of 104 infrastructure flagship projects under the Duterte administration’s ambitious “Build, Build, Build” program included 12 airports, of which nine will be rolled out through the public-private partnership (PPP) mode.
All unsolicited, the airport PPPs in “Build, Build, Build” include the P102.1-billion Naia redevelopment; P735.7-billion New Manila International Airport; P45.8-billion Laguindingan Airport; P39.5-billion Davao International Airport; P19.2-billion Bacolod-Silay International Airport; P14.9-billion Clark International -Airport Expansion Phase 1; P4.6-billion Iloilo International Airport; P3.8-billion Kalibo International Airport, and P3.8-billion New Bohol (Panglao) International Airport.
The three other airport projects included in “Build, Build, Build” will be financed by the national budget– P4.8-billion Bicol (New Legaspi) International Airport; P2.6-billion M’lang (Central Mindanao) Airport, and P1.1-billion General Santos Airport.