Think tank: New NAIA rehab an attractive deal

MANILA  -The Philippine government is expected to receive multiple bids for the solicited Ninoy Aquino International Airport (Naia) rehabilitation project given the expected payoff for taking on a big-ticket transportation initiative at a time of mobility resurgence, according to a think tank.

Infrawatch PH convener Terry Ridon, in a message to the Inquirer, said the project was a “solid investment proposition for various local and foreign infrastructure firms.”

The Manila International Airport Authority (MIAA), for one, is seeing the full recovery of the aviation industry given the increasing foot traffic at airports. International and domestic passengers grew by 78 percent to 22.22 million in the first half, which is only 8 percent below the volume prior to the pandemic.

READ: PH, rest of Asia to see fastest air travel growth in next 20 years

“Until the Bulacan airport is built, [Naia] remains the nation’s premiere international gateway, and it is the closest airport to the capital’s financial, political and cultural hubs,” he explained. San Miguel Corp.’s airport project, which is currently undergoing land development works, is targeted to be completed by 2027.

The Department of Transportation announced last week the opening of the bidding for the P170.6-billion contract to upgrade and expand capacity of the Ninoy Aquino International Airport. The submission for bids is set on Dec. 27.

READ: PH jump-starts Naia privatization as deadline for bids set for Dec 27

Among the bidder qualifications is the P20-billion equity requirement, which Ridon described as “reasonable” given the project’s scale.

“This requirement ensures that all bidders that seek to participate in the bid have significant track record, capital heft and financial standing,” Ridon said.

“This also ensures that the project will not entirely rely on debt financing, as high equity requirements subject interested parties to significant risk, which is an indicator of corporate fitness and sincerity to move the project to completion,” he added.

The P170.6-billion project includes rehabilitation of passenger terminals and airside facilities such as runway, aircraft parking area and airfield lighting; provision of facilities enabling intermodal transfer at the airport; and construction of connection from Naia Terminal 3 to Metro Manila Subway, which is under development.

Included in the contract is an upfront payment of P30 billion to MIAA. INQ