NEDA Board to give NAIA a rehab

The rehabilitation and upgrade of the Ninoy Aquino International Airport (NAIA) move closer to reality after the unsolicited proposal secured on Friday, 29 November 2019, the nod of the National Economic and Development Authority (NEDA) Board chaired by President Rodrigo Roa Duterte.

With the government’s approval, the consortium of seven at the helm of the NAIA Rehabilitation Project was given the go-ahead to proceed with the PhP102-billion project, subject to a Swiss challenge.

Prior to the Swiss challenge, the Manila International Airport Authority (MIAA), as the primary Grantor, and the NAIA Consortium shall first negotiate on the terms and condition of the concession agreement based on the parameters prescribed by the NEDA Board.

MIAA will then submit the results of the negotiation to the NEDA Board and the negotiated draft Concession Agreement (CA) to the Office of the Solicitor General (OSG) and the Department of Finance (DOF) for comments within ten (10) days from receipt of the draft CA.

Thereafter, MIAA and the Consortium shall issue the Certificate of Successful Negotiations and subsequently, the project will undergo a Swiss challenge where other firms can still submit more competitive counter-proposals. If there are none, only then can the NAIA consortium be awarded the contract and proceed.

The project‘s private consortium is comprised of Aboitiz InfraCapital, Inc; AC Infrastructure Holdings Corporation; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corporation; Filinvest Development Corporation; JG Summit Holdings, Inc.; and Metro Pacific Investments Corporation.

Department of Transportation (DOTr) Secretary Arthur Tugade welcomed this positive turn in the project’s development.

“We will soon see much-improved air traffic handling and operations once NAIA is rehabilitated. The improvement of the country’s primary gateway is proof that the administration of President Rodrigo Duterte is seriously thinking of the convenience and safety of every air passenger who is either flying off or arriving in our country,” said Secretary Tugade.

Primary objective of the project is to help alleviate the worsening air traffic congestion at the NAIA and solve its capacity constraint by reconfiguring and renovating existing facilities and enhancing operation and maintenance (O&M). This will allow for the accommodation of more traffic.

The rehabilitation project also aims to broaden the NAIA’s role as a key economic and tourism driver for Manila and the whole Philippines; deliver capital infrastructure investment to improve the airport’s efficiency and increase its capacity to meet the growing passenger demand from the Philippines and the Asia Pacific Region; deliver best-in-class passenger experience as a capital city airport, which is demanded by increasingly sophisticated travelers; and, create a positive first and last impression for Filipinos and visitors.

The NAIA rehabilitation project will be implemented in three phases from 2021 to 2024.

Phase 1 (2021-2022) involves the immediate improvements and reconfiguration of the existing airport terminals with the aim of improving the NAIA’s capacity from 31.0 million passengers per annum (MPPA) to 47.0 MPPA.

Phase 2 of the project (2022-2023) covers the development of a new passenger building (Terminal 2 Annex) and the improvement of the corresponding apron area to increase the capacity from 11.0 MPPA to 21.0 MPPA, and the reconfiguration and expansion of the Terminal 3 building and apron layout to increase terminal capacity from 23.0 MPPA to 24.0 MPPA at the security control, baggage reclaim, and boarding areas; and improvement of airside facilities including the construction of a new taxiway, and installation and upgrading of Communications, Navigation, Surveillance/Air Traffic Management (CNS/ATM) equipment to provide better accessibility and flow of air traffic and to increase capacity in terms of air traffic movement; and upgrading works for general utilities, car park area, passenger connections and miscellaneous facilities required for airport operations.


Phase 3 of the project (2023-2024) will see the construction of new terminals, and expansion of existing terminals as the O&M works are being carried out to increase NAIA’s capacity from 58.0 to 65.0 MPPA. Phase 3 will also see the completion of a New Terminal Annex Building which aims to add 5.0 MPPA, to NAIA’s capacity, resulting in a total terminal capacity of 26.0 MPPA.

In addition, Phase 3 of the NAIA rehabilitation plan will also see an increase in the capacity of Terminal 3 by 2.0 MMPA, resulting in total terminal capacity of 26.0 MPPA. There will also be a development of airside facilities and upgrading works for general utilities, a car park area, passenger connection, and miscellaneous facilities corresponding to the increased capacity.

Department of Public Works and Highways (DPWH) Secretary and Government Infrastructure Cluster head Mark Villar was also pleased with the NEDA Board’s decision to give the NAIA rehabilitation plan the green light.

“Approval of the NAIA rehabilitation plan gives the other key government infrastructure projects that are now in the infrastructure cluster pipeline, a much-needed boost. This is a very positive development as far as fast-tracking our infrastructure backlogs is concerned,” he said.

For his part, Secretary Vince Dizon, Presidential Adviser for Flagship Programs and Projects, also lauded the green-lighting of the airport rehabilitation plan, saying that it is fully-integrated with the other plans of the DOTr to improve and harmonize the country’s various transportation areas, of which the aviation and airport sector is a vital component.

“The rehabilitation of the NAIA is proof of just how forward-looking the DOTr under the guidance of Secretary Tugade is now. Improvement of the country’s gateways such as the NAIA is also an important thrust of the administration’s Build, Build, Build program,” he said.

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