Philippines Officials Call for Extension of NAIA Rehabilitation Project Bidding

Manila: In a recent development, several lawmakers and a senior government official have urged the Department of Transportation (DOTr) to extend the bidding deadline for the Ninoy Aquino International Airport (NAIA) rehabilitation project. This call aligns with the Asian Development Bank’s (ADB) advice to extend the deadline by one month, ensuring due diligence and preventing monopoly.

According to Philippines News Agency, Manila Rep. Rolando Valeriano, OFW Party-list Rep. Marissa Magsino, and Presidential Adviser on Poverty Alleviation Larry Gadon all emphasized the importance of following the ADB’s recommendation. Valeriano, chairperson of the House Committee on Metro Manila Development, noted that extending the deadline to Jan. 29, 2024, would allow the DOTr to select the most qualified bidders for the project. The officials expressed concerns that adhering to the original Dec. 27 deadline could lead to accusations of favoritism towards the only two prospective bidders and potential rigging of the process.

The ADB, in its memo, highlighted that a one-month extension would attract more bids, resulting in greater competition and a more favorable financial outcome for the government. The extension is seen as a commitment to ensuring fair play for all investors, now that recent reforms allow local and foreign investors to compete on equal terms. Magsino stressed the potential benefits of the extension in securing a cost-effective agreement and ensuring that the selected option would enhance NAIA’s services, capacity, technology infrastructure, and operation.

The ADB’s proposed extension is supported by at least four more bidders and aims to encourage new players and foreign investment in Philippine public-private partnerships, fostering competition without causing undue delays in NAIA’s modernization. Gadon underscored the complexity of the rehabilitation, noting that reviewing all work aspects could prevent critical issues during construction.

Eight firms have shown interest in the project, including local and international players. The DOTr and Manila International Airport Authority initiated the bidding process in August, aiming to increase NAIA’s annual capacity and improve its facilities. The winning bidder will have responsibilities including rehabilitating terminals, developing commercial assets, and providing access facilities, with a possible extension of the 15-year concession agreement.

Magsino called for serious consideration of the extension proposal by the DOTr leadership, emphasizing the need to study the rehabilitation and expansion plans thoroughly and ensure that the resulting proposal does not lead to increased terminal fees for passengers.