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San Miguel consortium wins bid to rehabilitate NAIA

Article (news)

Jekki Pascual

ABS-CBN News

MANILA (UPDATED) -- The Department of Transportation on Friday announced that the San Miguel-led consortium won the bidding for the Ninoy Aquino International Airport rehabilitation project worth around P170 billion.The consortium said it plans to transform NAIA into a world-class airport. The San Miguel group consists of San Miguel Holdings, RMM Asian Logistics, RLW Aviation Development, and Incheon International Airport Corporation.“We are committed to collaborating closely with the government and our various stakeholders, harnessing every resource available to us, to transform NAIA into a modern international gateway that Filipinos will be proud of,” it said in a statement.The DOTr said the San Miguel consortium offered the highest share of revenues to government at 82.16 percent. This was significantly higher than the two other bidders. The GMR Airports Consortium offered 33.30 percent share of revenues, while the original proponent of the NAIA project, the Manila International Airport Consortium offered 25.91 percent.GMR Airports Consortium is made up of India&#x27;s GMR Airport International B.V., Cavitex Holdings Inc and House of Investments Inc.The Manila International Airport Consortium, meanwhile, is a group composed of the country&#x27;s largest conglomerates including Aboitiz InfraCapital Inc, AC Infrastructure Holdings Corp, Alliance Global, Filinvest Development Corp, JG Summit Infrastructure Holdings, Asia&#x27;s Emerging Dragon Corp and their US-based partner Global Infrastructure Partners (GIP).<div><a href="https://news.abs-cbn.com/business/2024/2/8/dotr-names-3-qualified-bidders-for-naia-rehab-1622" rel="noopener noreferrer" target="_blank">DOTr names 3 qualified bidders for NAIA rehab</a></div>Asian Airport Consortium made a bid to rehabilitate the country&#x27;s main gateway, but their technical proposal was deemed non-compliant or incomplete before they even made their financial offer.<div><a href="https://news.abs-cbn.com/business/2024/2/14/cosco-capital-says-considering-appeal-of-airport-bid-1308" rel="noopener noreferrer" target="_blank">Losing NAIA bidder Cosco Capital says considering appeal of airport bid</a></div>In a statement, SMC Sap and Co Consortium said it was honored to &quot;transform NAIA into a modern international gateway that Filipinos will be proud of.&quot;&quot;Our proposal is designed not only to elevate NAIA to world-class standards but also to ensure that the government benefits from the most advantageous revenue-sharing agreement,&quot; the group said. Transport officials admitted that several groups challenged the bids of other groups, including the bid of San Miguel.“Three out of 4 bidders filed or submitted challenges to the qualifications of the other bidders. One of them challenged three, the other challenged two, the other challenged one. All of the challenges, all of the disputes that were submitted to BAC have been resolved,” said DOTr Usec. TJ Batan who heads the Bids and Awards Committee.DOTr Secretary Jaime Bautista said he is confident the deal won’t be challenged by the losing bidders anymore.“Before we made the award today, we informed the two other bidders who qualified, ok naman yun acceptance nila when I talked to them,&quot; he said.Bautista said passengers would already notice significant improvements in the first year of operations of the new management.The concession agreement will be signed within 30 days, then the San Miguel group can already operate the airport in 3 to 6 months time.“Greater availability of parking, shorter and more predictable waiting time everything from check in, to immigration, to security. Availability of seats at pre-departure gate, baggage coming out of the belly of the plane to conveyor belt on time, reliable operating elevators, escalators, passenger boarding bridges, reliable lighting,” Batan added on the expected improvements.<div>GOVERNMENT GAINS</div>But aside from the passengers, the government itself will profit from this agreement. Batan said the government stands to get about P900 billion during the 25-year period, which includes the extended 10 years if service is good.“Capex estimate is P122.3 [billion]. Payment to government consists of 3 things - the P30 billion upfront payment, P2 billion annuity, and the 82% revenues. Add those 3 up thats a total of P900 billion for the duration. (JC) That’s P36 billion per year going to govrnment compared that to the diviens of MIAA from 2010-2023 na P23.3 billion,” said Batan.But with the high investment, there are questions as to whether San Miguel can afford to operate NAIA, given that it also is building a multi-billion peso airport in Bulacan and other infrastructure projects as well. But the DOTr said it has considered the financial portfolio of the company, among others.“We considered whether lenders or banks are willing to lend and that has been covered, that has been included in the scope of our evaluation of financial proposals,” said Batan.However, the Manila International Airport Authority said there might be increases in some fees like aeronautical fees, rental fees, parking and more. This may also lead to a rise in airfare and items sold at the airport.<div> SOME NAIA WORKERS EYE CASE VS PRIVATIZATION</div>Meanwhile, some employees of the Manila International Airport Authority said they would file a case before the court against the privatization of the country&#x27;s main gateway. The group Samahang Manggagawa sa Paliparan ng Pilipinas (SMPP) said they were never consulted and they fear losing their jobs.The group added that even if some employees would be absorbed by the new management, there was no guarantee they would be given the right benefits and regularization.“Ang pangamba ng buong officership, pag lumipat, kung may malilipat lang, ang ibigay sa kanila probationary 6 months. Hindi namin alam after 6 months ano mangyayari sa kanila,” said Gilberto Bagtas, vice president of SMPP.The union is finalizing some documents. It seeks to talk to some lawmakers on the issue.“Hindi po kami binigyan ng pagkakataon malaman mga dokumento. Wala po consultation, zero, zero wala,” Bagtas asserted.Transport Secretary Jaime Bautista earlier assured MIAA workers no one would lose their jobs.“There are employees of NAIA who will join them and employees of NAIA who will remain with MIAA as a regulator,” he said.SMPP said there were about 3,000 to 4,000 employees of MIAA including organic workers, outsourced and police under the agency.Over 700 are members of the union.<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/airport-02162024.jpg" style="width:950px" class="fr-fic fr-dib" alt="Some employees of Manila International Airport Authority are against the NAIA privatization, saying they were not consulted at all and they fear job losses. These posters were placed inside the compound of MIAA. Jekki Pascual, ABS-CBN News"/><span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Some employees of Manila International Airport Authority are against the NAIA privatization, saying they were not consulted at all and they fear job losses. These posters were placed inside the compound of MIAA. Jekki Pascual, ABS-CBN News </div><div>— With a report from Jekki Pascual, ABS-CBN News</div>

A consortium led by Ramon Ang's San Miguel Holdings Corp won the bid to rehabilitate the NAIA.

A consortium led by Ramon Ang's San Miguel Holdings Corp won the bid to rehabilitate the NAIA.