Bilyonaryo - Business

Disadvantageous deal? NAIA consortium only given 15 years to recover P210 billion investment

June 19, 2023

Bilyonaryo.com

The seven big conglomerates which have teamed up to improve the Ninoy Aquino International Airport (NAIA) could be at the losing end of a deal with the Department of Transportation (DOTr).

The so-called Manila International Airport Consortium (MIAC) –– dubbed a “super consortium” as its members count bilyonaryo developers Aboitiz InfraCapital, AC Infrastructure Holdings Corporation, Asia’s Emerging Dragon Corporation, Alliance Global Infracorp Development, Filinvest Development Corporation, JG Summit Infrastructure Holdings Corporation and Global Infrastructure Partners –– has jacked up its bid to rehabilitate and maintain NAIA to P210 billion from an initial P100-billion investment plan.

Political scientist Alex Magno, however, said the MIAC could be put in a tight spot as the DOTr wants the contract to be good for only 15 years.

“Government is offering the MIAC only 15 years to rehabilitate the facility and recover their investments. This seems too tight,” Magno wrote in his Philippine Star column.

“It will require the consortium to charge painfully higher fees to get a return on investment,” he added. “The window for a feasible rehabilitation of the Manila airport is rapidly closing, even as our bureaucrats dither on the consortium proposal.”

It’s a race against the clock as bilyonaryo Ramon Ang’s San Miguel Corp. is also building the New Manila International Airport in Bulacan.

“San Miguel’s airport is entirely privately funded and could be operational before any substantial rehab of the old Manila airport is done, undercutting the commercial viability of the latter,” he added.

San Miguel’s airport will have four runways, or more than NAIA’s one and a half airstrip.

Related News Tags: Department of Transportation, DOTr, Manila International Airport Consortium, MIAC, NAIA, Ninoy Aquino International Airport

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