Naia rehab deal set for March 18 signing

This photo, taken on March 7, 2014, shows the Ninoy Aquino International Airport (NAIA) Terminal 1. (File photo by GRIG C. MONTEGRANDE / Philippine Daily Inquirer)

The Department of Transportation (DOTr) and San Miguel Corp. (SMC) SAP & Co. Consortium are set to sign the P170.6-billion Ninoy Aquino International Airport (Naia) rehabilitation contract on March 18, signaling the official start of the much-needed upgrade of the country’s primary international gateway.

On the sidelines of an event in Quezon City last week, Transportation Secretary Jaime Bautista told reporters they were “on track” with the scheduled contract signing.

He added that the Ramon Ang-led consortium has assured the government of its financial commitment to the project. The group, to recall, put forward an aggressive proposal of 82.16-percent revenue share with the government to win the contract.

READ: SMC wins bid for P170.6-billion Naia rehabilitation project

The public-private partnership project is estimated to generate P900 billion for the government, or about P36 billion annually, during the full 25-year concession period. The total revenues also include a P30-billion upfront payment, the P2-billion annuity payment and revenue share.

For now, Bautista said they were working on some post-award documents before the signing.

The group comprises SMC, local companies RLW Aviation Development Inc. and RMM Asian Logistics Inc. and Korean airport operator Incheon International Airport Corp.

The private concessionaire was named the winner of the solicited bidding race on Feb. 16, besting GMR Airports Consortium and Manila International Airport Consortium.

The SMC-led group’s concession period is 15 years, which can be extended by another 10 years depending on the results of a performance evaluation during the 8th year.

The consortium is tasked with rehabilitating passenger terminals and airside facilities such as runway, aircraft parking area and airfield lighting. It would also build facilities enabling intermodal transfers at the terminals.

The DOTr earlier said they expected the group to already deliver some improvements in the airport as early as next year. These include making waiting time at check-in and immigration counters shorter and more predictable, more available parking slots and additional seats at the pre-departure areas.

Rehabilitating Naia will increase its capacity up to around 60 million passengers per year—from the current 32 million—which is seen as a must given that it is already handling volume beyond its capacity. INQ