The competition for the highly-anticipated contract to operate and maintain the Ninoy Aquino International Airport (NAIA) has intensified as Incheon International Airport Corp., the operator of one of the world’s best airports, joins the fray. The Transportation Secretary, Jaime Bautista, confirmed that this addition brings the number of interested parties to seven, all vying for the opportunity to rehabilitate one of the world’s most notorious airports.
The NAIA, often criticized as one of the worst airports globally, is undergoing a major transformation with a staggering P170.6-billion contract for a 15-year concession. The ambitious project aims to turn the airport into a world-class facility that can meet the demands of modern air travel. With the entry of the Incheon Airport Group, a new dynamic has been introduced to this transformative process.
Incheon International Airport, located in South Korea, has been making waves in the aviation industry. Voted as the fourth-best airport in the world for 2023 by Skytrax, Incheon International Airport stands as one of the busiest gateways globally. In 2019, it facilitated the travel of a record-breaking 71.17 million passengers, a testament to its efficiency and quality of service.
Before Incheon International Airport Corp. expressed interest, the Department of Transportation (DOTr) had already issued bidding documents to six other companies: GMR Airports International BV, San Miguel Holdings Corp., Manila International Airport Consortium (MIAC), Spark 888 Management, Asian Airport Consortium, and Cengiz Insaat Sanayi ve Ticaret A.S. With the participation of such esteemed global entities, the competition for the NAIA rehabilitation contract is robust and diverse.
The DOTr has been actively engaging in one-on-one meetings with the executives of some of the interested bidders, marking a significant step toward the selection process. The agency has already conducted initial discussions with GMR Airports, San Miguel, MIAC, and Asian Airport Consortium. Among the ongoing negotiations, a key issue under consideration is who will be responsible for paying the real estate taxes of NAIA once the airport is turned over to the chosen concessionaire.
The timeline for the NAIA transformation project is well underway. As planned, the DOTr is set to release the final draft of the concession agreement on December 4, with bids accepted until December 27. Following this, the government aims to award the contract to the most qualified bidder in 2024, setting the stage for a new era of travel through NAIA.
This privatization initiative received the green light from the National Economic and Development Authority Board in July, paving the way for a significant investment in NAIA’s future. The chosen concessionaire will be entrusted with a 15-year period, extendable by 10 years, to implement the extensive upgrades outlined in the concession.
As the competition heats up with Incheon International Airport Corp.’s involvement, the prospects for NAIA’s transformation have never looked more promising. With the infusion of expertise and experience from around the world, the once-criticized airport may soon find its place among the best, delivering a positive impact on the Philippines’ aviation landscape.
(Source: Elijah Felice Rosales | Philippine Star)
