Top PH CEOs push P267-B Naia rehab proposal | Inquirer Business

Top PH CEOs push P267-B Naia rehab proposal

TO REDUCE STRESS Passengers line up at the entrance of the departure area of Ninoy Aquino International Airport Terminal 1. The Department of Transportation took a step closer to rehabilitating the “stressful” airport. —FILE PHOTO

Passengers line up at the entrance of the departure area of Ninoy Aquino International Airport Terminal 1. The Department of Transportation took a step closer to rehabilitating the “stressful” airport. —FILE PHOTO

MANILA  -The leaders of some of the country’s top conglomerates, along with their New York-based partner Global Infrastructure Partners (GIP), came out in full force on Monday to pitch their P267-billion unsolicited proposal to rehabilitate Ninoy Aquino International Airport (Naia), while reiterating the need for 25 years to realize the big-ticket project.

During a press briefing in Makati City, the Manila International Airport Consortium (MIAC) shared its strategy—to be implemented in phases—to expand the capacity of the congested airport, ultimately increasing it to 70 million passengers annually from the current 31 million.

Article continues after this advertisement

At the briefing to represent the conglomerates in the consortium were Ayala Corp. president Cezar Consing, Aboitiz InfraCapital president Cosette Canilao, JG Summit Holdings treasurer Bach Johann Sebastian, LT Group chief financial Jose Gabriel Olives, Filinvest Development Corp. president and CEO Josephine Gotianun-Yap and Alliance Global-InfraCorp Development Inc. chair and president Kevin Tan.

FEATURED STORIES

GIP vice chair Jim Yong Kim, a former World Bank president, stressed the need for Naia to undergo an extensive rehabilitation so the Philippines can take advantage of the resurgence in tourism activities.

“The Philippines, with the most beautiful beaches, the warmest hospitality and a deep pool of well-trained English-speaking talent cannot be allowed to fall behind because of an underperforming gateway airport,” he said.

Article continues after this advertisement

Upfront payment

Of the P267-billion proposal, about P210 billion is allocated for capital investments in airfield and runway upgrades, terminal expansion, new cargo facilities and taxiway extension.

Article continues after this advertisement

Mega consortium’ sweetens Naia modernization pitch, commits P 210B

Article continues after this advertisement

The remaining P57 billion is the upfront concession payment to the government, which is touted to be the “largest ever” payment for a transportation public-private partnership project in the country.

Given the massive investment required to complete the project as envisioned, a minimum contract period of 25 years is being sought.

Article continues after this advertisement

“The amount the consortium will be investing will only work under a 25-year concession period so that we can have an airport that we can be proud of,” stressed Gotianun-Yap.

But based on the P141-billion solicited proposal by the government, the chosen private concessionaire will only be given 15 years to rehabilitate Naia and recoup investments. The proposal is under review by the National Economic and Development Authority.

DOTr to iron out NAIA rehab with private bidder

“A 15-year concession period will not really do much in terms of transforming the airport. We’ve already studied that before,” said Tan on the sidelines of the event.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Asked if MIAC was open to revising their bid, if ever, Tan said: “Right now, it is 25.” INQ

TAGS: Business, consortium, Naia rehab, PPP

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.