NEDA Board approves solicited proposal for NAIA rehab

Ralf Rivas

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NEDA Board approves solicited proposal for NAIA rehab

NAIA. Passengers at the Ninoy Aquino International Airport Terminal 1 line up on June 16, 2023.

Jire Carreon/Rappler

With the government proposal getting the green light, the unsolicited proposal of a consortium is 'de facto closed'

MANILA, Philippines – The National Economic and Development Authority (NEDA) Board on Wednesday, July 19, approved several infrastructure projects and changes to ongoing ones, including the solicited proposal for the Ninoy Aquino International Airport (NAIA) rehabilitation.

In a press briefing at Malacañang, NEDA Secretary Arsenio Balisacan said the P170.6-billion proposal of the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA) wants the private sector to help with addressing long-standing issues at NAIA, including inadequate passenger capacity and restricted aircraft movement.

“It aims to increase the current annual airport capacity from 35 million to at least 62 million passengers. The NAIA public-private partnership project also aims to increase air traffic movement from 40 to 48 per hour. The project is also expected to improve the overall passenger experience and service quality to prevent long queues, lengthy waiting times, and other passenger inconveniences,” Balisacan said.

The DOTr and MIAA earlier said a private concessionaire may operate NAIA and make a profit from 15 to 25 years.

A solicited proposal is submitted in response to a request made by the government, which usually already outlines certain terms and conditions. Meanwhile, an unsolicited proposal is submitted before any such request is made by the government.

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Asked about what would happen to the P267-billion unsolicited proposal of the Manila International Airport Consortium (MIAC), Balisacan said it is “de facto closed.”

MIAC is composed of Aboitiz InfraCapital, AC Infrastructure, Asia’s Emerging Dragon Corporation, Alliance Global-InfraCorp Development, Filinvest Development Corporation, JG Summit Infrastructure Holdings Corporation, and Global Infrastructure Partners.

They are encouraged to participate in the solicited bidding, according to Balisacan.

Transportation Secretary Jaime Bautista had said in a Rappler Talk interview on Tuesday, July 18, that MIAC’s unsolicited proposal differed from the solicited proposal in terms of revenue sharing and timing of investments.

The solicited proposal asked for a higher revenue share for the government than MIAC’s plan.

The government is also asking the private sector to pour in more cash for the first five years of the rehabilitation. Bautista said this ensures that changes would be more evident and immediate.

Other projects

Another new project approved by the NEDA Board is the Samar Pacific Coastal Road II Project, which amounts to P7.48 billion. Two marine bridges, the Laoang II Bridge and the Calomotan Bridge, will be constructed. Existing roads between Laoang Island and mainland Samar Island with a total length of 15 kilometers will also be improved under the project.  

The P12.75-billion unsolicited proposal for the upgrade, expansion, operation, and maintenance of the Laguindingan International Airport in Misamis Oriental was also given the nod. 

“The project aims to integrate concepts of ‘green’ and ‘connected’ airports into its design and operation and use digital technologies to enhance the passenger experience. This project will be implemented by the DOTr and the Civil Aviation Authority of the Philippines,” Balisacan said. –

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.