AT A GLANCE
- Finance Secretary Benjamin Diokno says the Marcos administration will have to review the proposal of the Manila International Airport Consortium (MIAC) that seeks to upgrade the Ninoy Aquino International Airport (NAIA).
- Diokno says the review will follow a well-defined and impartial process that considers the interests of all stakeholders.
- MIAC, a partnership among six leading Filipino conglomerates and US-based Global Infrastructure Partners (GIP), earlier unveiled a P100-billion unsolicited proposal to upgrade NAIA, the main international gateway into the Philippines.
The Department of Finance (DOF) said the unsolicited proposal seeking to upgrade the Ninoy Aquino International Airport (NAIA) will follow a well-defined and impartial process that considers the interests of all stakeholders.
During the weekly “Chat with SBED” last Friday, June 23, Finance Secretary Benjamin E. Diokno said the Marcos administration will have to review the proposal of the Manila International Airport Consortium (MIAC).
MIAC, a partnership among six leading Filipino conglomerates and US-based Global Infrastructure Partners (GIP), earlier unveiled a P100-billion unsolicited proposal to upgrade NAIA, the main international gateway into the Philippines.
The consortium is made up of Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corp., Asia’s Emerging Dragon Corp., Alliance Global – Infracorp Development, Inc., Filinvest Development Corp., and JG Summit Infrastructure Holdings Corp.
“You have to look at the full proposal, not just the PR [press release]. They need to present their proposal and subject it to Swiss Challenge,” Diokno told reporters.
The Swiss Challenge is a process in which the government invites other private entities to submit competing proposals that can either match or surpass the unsolicited proposal in order to win the bid.
The original proponent then has the opportunity to match the best competing proposal and win the bid, or decline to match the offer and allow the competing entity to be awarded the project.
“If you’re in government, you have to think what’s fair for everyone. There are many considerations for this. If there’s a clear process, it has to go through that process,” the finance chief said.
The unsolicited proposal includes a significant upfront payment to the government and committed investments in new facilities and technology to transform NAIA into a world-class airport.
Airports currently and previously owned or operated by members of the consortium include Mactan-Cebu, Clark, London Gatwick, Edinburgh, London City, and Sydney airports.
During the Duterte administration, there were also efforts made to provide NAIA with a makeover worth billions of pesos.
But in 2020, the Duterte administration decided to terminate talks with the previous NAIA consortium after authorities rejected its proposed revisions to the P102-billion plan.
This was due to concerns that the project would not be viable in the long term given the lasting impact of the Covid-19 pandemic.
Following this, Megawide Construction Corp. and its Indian partner, GMR, were chosen to take over the project. However, their P109-billion proposal was eventually deemed too large for the company to absorb at the time, and they lost their original proponent status.
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The article was originally published in Manila Bulletin and written by Chino S. Leyco.
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