NAIA Consortium, Aboitiz Infra submit revised airport offers

MANILA, Philippines — The private proponents behind proposals to rehabilitate the congested Ninoy Aquino International Airport (NAIA) and take over the Bohol-Panglao International Airport have come up with their respective revised offers in hopes of complying with the state’s new conditions and eventually secure its final approval.

Transportation Undersecretary for planning Ruben Reinoso told The STAR that the group of seven conglomerates known as the NAIA Consortium, as well as Aboitiz InfraCapital have submitted the revised concession terms for their respective unsolicited airport proposals.

“It’s now under review,” Reinoso said.

The NAIA Consortium, which is composed of Aboitiz InfraCapital, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp., JG Summit Holdings Inc., and Metro Pacific Investments Corp., has the original proponent status for its P102-billion unsolicited proposal to rehabilitate, upgrade, expand, operate and maintain the NAIA for 15 years.

Aboitiz InfraCapital, meanwhile, has been declared as the original proponent for its offer to upgrade, operate and maintain the Bohol-Panglao International Airport.

The Investment Coordination Committee (ICC) of the National Economic and Development Authority (NEDA) had previously asked the NAIA Consortium for additional revisions in the proposed concession agreement following its approval last Sept. 27.

The two major revisions include the coverage of material adverse government action (Maga) and conditions involving government guarantees for subsequent investment.

For the Maga, the ICC wants the contract to be limited to actions of the executive branch and should not include those from the local government, judiciary and legislative.

The ICC also wants to remove the provision in the contract stating that the consortium will only start phase two of the project once the passenger service charge is adjusted, as this is deemed as a guarantee on the part of the government.

Meanwhile, the ICC has also recommended to Aboitiz InfraCapital adjustments that would entail a major restructuring of its proposal for the Bohol-Panglao International Airport.

The changes could result to the proponent having to give two separate offers for the airport’s expansion as well as its operations and maintenance. The ICC also wants the proponent to commence with the succeeding phases of the project even without the adjustment of fees.

Aboitiz InfraCapital’s offer to upgrade, operate and maintain the Bohol-Panglao International Airport, which was endorsed by the Department of Transportation last August to the NEDA-ICC, was among the airport projects which was earlier expected to be approved during the NEDA-ICC Cabinet Committee meeting last month.

While the proposal was discussed during the meeting, it failed to secure approval and instead was returned to the proponent for revision.