NAIA Consortium meets with Duterte

EYES WIDE OPEN – Iris Gonzales (The Philippine Star) | April 24, 2018 – 12:00am

The battle for the redevelopment of the Ninoy Aquino International Airport (NAIA) is getting exciting. While the transportation department already rejected the Tieng-Belle tandem’s proposal to develop Sangley and Dennis Uy’s proposal for the Davao airport, it’s still a guessing game for NAIA.

There are two groups vying to redevelop the country’s main gateway – the super consortium of seven conglomerates and the Megawide-GMR tandem. Both are working double time to ensure that they get the much-coveted project.

 The super consortium, for instance, met with no less than President Duterte last week to explain their big dream for NAIA — to turn the flagging airport into a sleek and efficient world-class hub.

 Members of the consortium are the MVP Group’s Metro Pacific Investments Corp. (MPIC), Aboitiz Group’s Aboitiz InfraCapital Incorporated, Ayala’s AC Infrastructure Holdings Corporation, Andrew Tan’s Alliance Global Group Incorporated, Lucio Tan-led Asia’s Emerging Dragon Corp., the Gotianuns’ Filinvest Development Corporation and the Gokongwei group’s JG Summit Holdings Inc.

 No less than the bosses of the giant conglomerates, including Ayala chairman Jaime Augusto “JAZA” Zobel de Ayala, met with Duterte last week.

 During the meeting, the group explained their proposal to Duterte and the “wisdom” of retaining NAIA as a major gateway even as Transportation Secretary Art Tugade said he wants to bulldoze NAIA and turn it into another business district.

“Opinions were expressed,” a government source said.

 I asked another source if the meeting moved the super consortium a step closer to getting the green light for their proposal.

My source simply said the meeting went well and that the government promised to carefully study the conglomerates’ offer.

 The Department of transportation has deemed the proposal complete and would have to decide on it first before opening the second proposal, it said.

 For sure both groups are doing everything they can to win the battle for NAIA.

 Ayala trumpets proposal

 Ayala, the country’s oldest conglomerate, trumpeted the proposal during the company’s annual stockholders’ meeting last week.

 “We feel it is an attractive offer and it won’t cost the government anything,” said chairman JAZA.

“It will address major bottlenecks in infrastructure,” he added.

 Without a third runway

 The consortium will spend P102 billion in the first five years of operations, Ayala president and CEO Fernando Zobel de Ayala also said during the stockholders meeting.

 This, he said, is the initial amount and does not yet include the cost of a third runway — if it does happen.

 Consortium members said their proposal is flexible and may or may not include a third runway. It may also have a shorter concession period as they proposed a two-phased development. The final blueprint will depend on what the government wants.

The consortium’s rival, the Megawide-GMR tandem said their rival should not be allowed to tweak its submission, which proposed a concession period of 35 years.

 JAZA said phase 2 includes an extra runway and a possible lengthening of the existing runway.

 “We do believe that our proposal, if accepted can address the length of the (existing) runway and have an extra runway in the future,” he said.

 Changi

 JAZA also talked about Singapore’s Changi Airports International during the annual stockholders’ meeting. He said Changi is the consortium’s technical partner.

The consortium is open to giving Changi a stake of up to 30 percent, but JAZA stressed that nothing has been finalized yet. If this happens, the consortium members will get a 10 percent stake each.

 JAZA talked about NAIA many times during the stock holders’meeting, visibly excited. I’m not surprised. Even without the super consortium, Ayala has long set its eyes on NAIA.

Terminal 3 woes

 I was at the airport again last Saturday to catch a night flight. The moment I stepped inside Terminal 3, I felt like I was in a furnace. In the scorching summer heat, it was as bad as it could get.

The air-conditioning system, I was told by airport staff, is not working. Again.

 There are new units placed in the various gates, but they are still in boxes and are not yet operating since they were delivered a month ago, I was told.

I don’t know why it takes so long to get things done and why something is always wrong in the country’s main gateway.

Both proposals on the table promised to transform NAIA into a world-class hub.

 The proponents have their strengths. One has the experience and the track record. Megawide-GMR turned the Mactan Cebu International Airport into a globally recognized and awarded gateway. The super consortium has no airport experience but some of its members operate giant airlines and know the ins and outs of the aviation business.

 Now whichever of the two groups will bag the NAIA contract should be ready to fulfill the promise to the government and the public. Both groups promised a world class and efficient gateway. They should make sure it happens.

 More importantly, they should remember it’s not all about making money.

Source: https://www.philstar.com/business/2018/04/24/1808711/naia-consortium-meets-duterte