MVP moves on from Naia privatization amid PPP revival
Manuel V. Pangilinan-led Metro Pacific Investments Corp. has moved on from Ninoy Aquino International Airport (Naia) modernization project in Manila, which is among the largest public-private partnership (PPP) deals being revived by the new administration.
Metro Pacific, an infrastructure giant with interests in energy, water distribution, toll roads, hospitals and logistics, cited viability concerns before withdrawing from the original Naia Consortium in 2020 before that bid was finally rejected by the government.
The Department of Transportation (DOTr) has since expressed its willingness to revive offers for Naia, the country’s primary gateway, but Pangilinan told reporters in a chance interview on Friday this was no longer a priority.
“I’ve forgotten about it (the Naia project),” said Pangilinan, the chair of Metro Pacific.
The company’s PPP portfolio includes the Light Rail Transit Line 1 in Manila and Beep card payment platform, both in partnership with the Ayala Group.
The businessman, however, signaled he was open to other PPP deals, which the Marcos government hoped would spur economic activity in the postpandemic era.
Timothy John Batan, undersecretary for planning and project development of DOTr, said last week they would push for the Naia PPP, which was originally proposed during the Aquino administration but was shelved by former President Rodrigo Duterte.
This was despite private sector-backed ventures to build other air gateways such as the P740-billion New Manila International Airport of San Miguel Corp. and the P60-billion Sangley Point International Airport, led by the Virata-Yuchengco consortium.
Those proposals were located in the nearby provinces of Bulacan and Cavite, respectively.
The last offer for Naia was made by the consortium of Megawide Construction Corp. and GMR Infrastructure.
Under a 25-year concession, it proposed to significantly expand capacity at Naia, which was suffering from congestion and constant flight delays before the pandemic, and to install a railway system linking the passenger terminals within the sprawling airport complex.
Meanwhile, Metro Pacific was tracking higher earnings in the third quarter for 2022, Pangilinan said.
Referring to the group’s electricity and water segments, he said billed volumes at Manila Electric Co. were higher while those of Maynilad Water Services were “flattish.”
The infrastructure conglomerate earlier announced a 74-percent increase in capital spending to P136 billion in 2022. Spending includes P57 billion for the power segment and P32 billion for toll roads. For water services, the budget was P12 to P14 billion while another P6 billion would be spent on railways.
