Court stops award of P126-M advertising contract at NAIA 2

By Recto Mercene, BusinessMirror

Posted at Jan 07 2013 08:22 AM | Updated as of Jan 07 2013 04:22 PM

MANILA, Philippines - A regional trial court issued an injunction on Friday, stopping the awarding of a P126-million contract for advertising spaces at the Ninoy Aquino International Airport Terminal 2 (NAIA 2).

Manila International Airport Authority (Miaa) General Manager Jose Angel Honrado on Saturday said San Juan City Regional Trial Court Judge Leoncio Janolo Jr. issued the injunction on the appeal of Digichive Philippine Corp. (DPC), which submitted a bid of P101.5 million against the winning bid of P126 million.

The Miaa board was set to use the proceeds of the advertising spaces to improve Naia 2.

Honrado, who is heading the board, said the bidding for the advertising spaces was held in August 2012.

The airport authority used to earn an annual income of only P13.5 million from the advertisements under the recently expired five-year contract with DPC.

In the August bidding, a potential concessionaire committed an annual revenue of P126 million for the Miaa for the next three years, much higher than the P101.5 million offered by DPC.

The Miaa board favored the higher offer but was restrained from awarding the contract to the winning party following the temporary restraining order, paving the way for DPC to continue doing business at Naia 2. The board said the premier airport would continue to lose P88 million annually from advertising revenues at Naia 2 as a result of the injunction.

Honrado said the government lost a total of P440 million under the DPC during the last five years from advertising revenues.

“This huge sum could have helped fund major renovations and upgrading of facilities for all of the four passenger terminals managed by Miaa,” Honrado said.

Malacañang approved last year the release of P1.16 billion earmarked for the rehabilitation of Naia 1, in a bid to make the airport a world-class facility and erased its dubious moniker as the worst airport in Asia in 2012.