DOTC eyes privatization of NAIA operations, maintenance

Rappler.com
DOTC eyes privatization of NAIA operations, maintenance
If privatized, NAIA employees could either be absorbed by the winning bidder or opt for early retirement

MANILA, Philippines – The Department of Transportation and Communications (DOTC) is looking at privatizing the operations and maintenance (O&M) of the congested Ninoy Aquino International Airport (NAIA) before President Benigno Aquino III’s term ends in 2016.

As such, DOTC eyes to bid out the O&M of NAIA within 2015, and the proposed project would be presented to the National Economic and Development Authority-Investment Coordination Committee (NEDA-ICC) for approval within the first half of the year.

The government is just awaiting the completion of the feasibility study for the project before it is presented to the NEDA-ICC, DOTC Secretary Joseph Emilio Abaya said.

“We are also waiting for the feasibility study but there will be a little resistance,” Abaya added.

The privatization of the NAIA O&M will be patterned after the P16.5 billion ($366.38 million*) Mactan-Cebu International Airport (MCIA), which has already been turned over to the tandem of Bangalore-based GMR Infrastructure and Filipino-owned Megawide Construction Corporation.

If privatized, employees of NAIA could either be absorbed by the winning bidder or opt for early retirement.

The proposed O&M contract is different though from the planned redevelopment of NAIA under the public-private partnership (PPP) scheme.

The redevelopment include the augmentation of the airside and landside facilities to accommodate the anticipated passenger surge.

The number of passengers in Greater Capital Region would hit 106.7 million by 2040 from 31.88 million in 2012, a study by the Japan International Cooperation Agency (JICA) showed.

The study added that it expected passengers from the National Capital Region, Central Luzon, and CALABARZON would steadily increase to 49.8 million in 2020, 75 million in 2030, and 106.7 million in 2040, the JICA study added.

To meet such anticipated passenger volume, the government identified the expansion of Clark International Airport (CIA) and the development of a new international airport roughly 20 to 30 minutes of Metro Manila.

DOTC intends to operate a new international airport by 2027 with the joint development of the congested NAIA in Manila and CIA in Pampanga.

JICA is also is set to complete the feasibility study for the planned $10 billion international gateway in Sangley Point in Cavite in the middle of this year.

JICA was looking at Sangley Point and Laguna de Bay as possible site for the new international gateway replacing NAIA.

But both locations require massive reclamation since the new international airport has to be about 2,000 hectares. – Rappler.com

 

$1 = P45.04

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