6-9-2023 (MANILA) The project to modernize the Ninoy Aquino International Airport (NAIA) in the Philippines, estimated at 170.6 billion pesos ($3 billion), has garnered interest from three potential bidders, according to the Philippine transportation secretary. Among the potential bidders are India’s GMR Group, which already operates an airport in Cebu, the San Miguel conglomerate, and a Manila consortium.
NAIA is ranked among the world’s worst international airports, plagued by chronic flight delays, congestion, and outdated facilities. The project aims to address these issues and improve the airport’s overall infrastructure.
Secretary Jaime Bautista emphasized the need for bidders with experience in operating airports and a strong financial background. The government plans to seek overseas investors through roadshows in Singapore and Paris before opening the bidding process in December. The winning bidder will be responsible for operating and maintaining the upgraded airport, which will have a capacity of approximately 60 million passengers annually. The concession period offered is 25 years.
Apart from NAIA, the Philippines is also seeking financing to upgrade four other airports located on Busuanga island, Zamboanga city, Sanga-Sanga island, and General Santos city. Additionally, a new airport will be constructed in Brooke’s Point town on Palawan island.
The Philippines has set a deadline for renegotiating Chinese loans for three railway projects worth $4.9 billion by the end of December. The government has been exploring other possible investors alongside the renegotiation process. The three projects are the Subic-Clark Railway Project, the Philippine National Railways South Long-Haul Project, and the Davao-Digos segment of the Mindanao Railway Project.
Inflation may have driven up the costs of these projects to over $4.9 billion, requiring approval from the National Economic and Development Authority for the updated budgets, according to Secretary Bautista. He also mentioned that if Chinese funding does not materialize, the government will explore alternative sources of funding from other interested investors.
