Bilyonaryo - Business

Long-term commitment: NAIA consortium pushes for 25-year concession for maximum impact

June 19, 2023

Bilyonaryo.com

The Manila International Airport Consortium (MIAC), a group comprising seven prominent conglomerates, is advocating for an extended concession period in its unsolicited proposal valued at P267 billion ($5.3 billion) for the rehabilitation and development of the Ninoy Aquino International Airport (NAIA).

MIAC argued that a concession period of 25 years would provide ample opportunity for the private sector to make substantial investments in NAIA’s infrastructure and technology.

The government wants to restrict the contract duration to a mere 15 years.

MIAC pointed out that a lengthier concession period would ensure a consistently high level of service expected from an international gateway.

The consortium also argued that a 25-year term would accommodate the projected surge in demand and facilitate a smooth transition towards a multi-airport system.

Furthermore, MIAC believes that a 25-year period would allow for the projected increase in demand and facilitate a smooth transition into a multi-airport system.

The super consortium consists of 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.

LT Group CFO Jose Gabriel Olives emphasized that a government decision in favor of the consortium’s 25-year plan would demonstrate the administration’s commitment to attracting strong foreign and local players for future public-private partnership (PPP) projects.

He further highlighted that meaningful private sector participation in PPPs would have a positive impact on future projects, as it would attract more private sector players to participate.

MIAC’s proposal, valued at P267 billion, encompasses P211 billion in capital investments.

Of this amount, P57 billion is slated for rollout within the first five years, while the remaining P154 billion is earmarked for investment over the subsequent 20 years of the proposed 25-year concession period.

Related News Tags: Manila International Airport Consortium (MIAC), NAIA, NAIA Consortium, rehabilitation

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