‘Mega consortium’ sweetens Naia modernization pitch, commits P 210B
Terminal 1 of the Ninoy Aquino International Airport (NAIA). Image from miaa.gov.ph
MANILA -The proposed Ninoy Aquino International Airport (Naia) rehabilitation project by the Manila International Airport Consortium (MIAC) is projected to contribute $14.6 billion to the Philippine economy through direct investments and knock-on effects on trade and tourism.
In a recent statement, the “mega consortium” backed by six of the country’s largest conglomerates said its Naia upgrade bid would cost $3.8 billion in total or roughly P210 billion—which is double the P100-billion project cost it had announced in April.
The Inquirer learned that the P100 billion was only the initial portion of MIAC’s investments.Of the estimated investment, about $1 billion will be spent in the first five years while the remaining $2.8 billion will be used for the rest of the 25-year concession.
“This investment will be geared toward undertaking facility upgrades, maintenance work, implementing new operating processes and introducing new technologies that will increase passenger capacity, shorten waiting and processing times, introduce more comfortable and modern facilities, and provide better connectivity between terminals, among others,” the consortium noted.
MIAC seeks to double passenger capacity of the congested international gateway to 62.5 million per annum by 2028 from 31 million currently.
Article continues after this advertisementThe new proposal also offers $1 billion in upfront concession payment.
Article continues after this advertisement“We believe that an upfront payment now to the government can potentially contribute to the country’s response to fiscal challenges due to the economic impact of the COVID-19 pandemic and current tightening global financial conditions,” said Cosette Canilao, president and CEO of consortium member Aboitiz InfraCapital.
The consortium also includes Ayala, Lucio Tan, Andrew Tan, Gotianun and Gokongwei groups as well as US-based fund Global Infrastructure Partners. INQ
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