Bigger gov’t revenue promise to decide Naia winner

Terminal 1 of the Ninoy Aquino International Airport (NAIA). Image from miaa.gov.ph

For the P170.6-billion Ninoy Aquino International Airport (Naia) rehabilitation project, the Department of Transportation (DOTr) will choose the bidder that can provide the government with the most revenues aside from proving its capacity to improve the facility.

“Not only will the project rehabilitate and expand the capacity of Naia, it’s also expected to generate substantial added revenues to the government,” Timothy John Batan, Transportation Undersecretary for Planning and Project Development told reporters last week.

He said the “highest percentage gross revenue share will determine who will win the Naia concession.” This represents the portion of the revenues that will go to public coffers. Batan did not say what the ideal share would be, noting the figure would only be disclosed after the bidding process is completed “as a matter of practice.”

“We’re expecting that the four bidders offered the best possible number they can,” Batan said.

The terms of reference for the big-ticket public-private partnership (PPP) project mandate that the government will have a share in Naia’s revenue generation from commercial and noncommercial operations.

This is on top of the winning concessionaire’s P30-billion upfront cost and P2-billion annual annuity payment.

Contenders

On Dec. 27, the DOTr welcomed the bids from four proponents: Manila International Airport Consortium (MIAC), Asian Airport Consortium, GMR Airports Consortium and SMC SAP & Co. Consortium.

MIAC, which previously submitted a P267-billion unsolicited proposal to operate the gateway, comprises Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Asia’s Emerging Dragon Corp., Alliance Global-Infracorp Development Inc., Filinvest Development Corp., JG Summit Infrastructure Holdings Corp. and Global Infrastructure Partners.

The Asian Airport Consortium is led by Asian Infrastructure and Management Corp., a construction firm based in Taguig City. Other members include diversified conglomerate Cosco Capital Inc., logistics company Philippine Skylanders International Inc. and Indonesian airport operator PT Angkasa Pura II. GMR Airports Consortium includes GMR Airports International BV, a member of the group operating the Mactan-Cebu International Airport, and House of Investments Inc. and Cavitex Holdings, both of which are part of the consortium that won the $11-billion Sangley Point International Airport project.

Billionaire Ramon Ang’s San Miguel Holdings Corp. is the lead member in SMC SAP & Co. Consortium. Other members are local companies RLW Aviation Development Inc. and RMM Asian Logistics Inc. and Korean airport operator Incheon International Airport Corp., which also previously bought bidding documents.

The winning bidder is expected to be announced on Feb. 15. INQ