Govt approves tender for $1.6-B NAIA upgrade | ABS-CBN

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Govt approves tender for $1.6-B NAIA upgrade

Govt approves tender for $1.6-B NAIA upgrade

ABS-CBN News

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Updated Sep 15, 2016 06:30 PM PHT

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MANILA (UPDATE) - A Philippine inter-agency panel chaired by President Rodrigo Duterte said on Thursday it has approved for auction a P74.56 billion ($1.57 billion) contract to overhaul Manila's over-stretched international airport.

The Southeast Asian nation is upgrading aging roads, ports and airports to further stimulate one of the world's quickest-growing economies, and to meet a long-overdue need for an infrastructure revamp to maintain competitiveness.

The Ninoy Aquino International Airport (NAIA) development is the first public-private partnership (PPP) project approved by the National Economic and Development Authority (NEDA) Board since Duterte assumed office on June 30.

The winning bidder will improve and upgrade operational efficiencies both landside and airside at all four terminals - excluding air traffic services - to meet international aviation standards, the PPP Center said in a statement.

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The concession period for the project is for 15-20 years, including the design and construction period. The transportation department expects to award and sign a concession agreement by September 2017.

Economists have long said the Philippines is an attractive destination for investors, but its infrastructure - once among the most advanced in the region - has become a logistical headache as the economy and population expand rapidly.

Airlines and passengers suffer chronic delays because of congestion at the airport, which served 36 million passengers last year, compared with its designed capacity of 31.5 million, data from the PPP Center showed.

Conglomerates JG Summit Holdings Inc. and Filinvest Development Corp., as well as Megawide Construction Corp. are interested in bidding for the project, officials at those companies said.

To date, there are 12 airport, prison, road and rail projects worth more than P400 billion under various stages of auction.

The government plans to spend P860.7 billion on infrastructure projects in 2017 under the proposed budget, 13 percent more than this year.

Aside from the NAIA upgrade, the NEDA board also approved the
following projects:

  • Inclusive Partnership for Agricultural Competitiveness of the Department of Agriculture
  • Eastern Visayas Regional Medical Center Modernization Project of the Department of Health (DOH)
  • Modernization of Gov. Celestino Gallares Memorial Hospital Project of DOH
  • Metro Manila Flood Management Project, Phase I of the Department of Public Works and Highways (DPWH) and the Metropolitan Manila Development Authority
  • Metro Manila Bus Rapid Transit-EDSA of the Department of Transportation
  • Increase in Passenger Terminal Building Area of the Bicol International Airport of the DOTr and the Civil Aviation Authority of the Philippines (CAAP)
  • Change in Scope of the New Bohol Airport Construction and Sustainable Environment Protection Project also of the DOTr and CAAP
  • Maritime Safety Capability Improvement Project for the PCG, Phase II of the DOTr and Philippine Coast Guard

Apart from the projects, the NEDA Board also adopted new policies to improve and streamline government’s approval processes of major public investment projects. -- With Reuters

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