THE National Economic and Development Authority (Neda) board approved on Wednesday, July 19, 2023, the public-private partnership (PPP) proposal worth P170.6 billion for the rehabilitation of the Ninoy Aquino International Airport (NAIA).
In a press briefing, Neda Secretary Arsenio Balisacan said the NAIA rehabilitation was among the three new infrastructure projects approved by the board, which was chaired by President Ferdinand Marcos Jr.
The two others were the P7.48 billion Samar Pacific Coastal Road 2 project and the P12.75 billion Laguindingan International Airport project.
In addition to the new projects, the Neda board also approved changes in scope, cost, design and/or loan validity for four ongoing infrastructure projects.
These are the Cebu Bus Rapid Transit (BRT) Project, Integrated Disaster Risk Reduction and Climate Change Adaptation or IDRR-CCA Measures in Low-Lying Areas of Pampanga Bay Project, the Jalaur River Multipurpose Project Stage II project, and the Malitubog-Maridagao Irrigation Project Stage II or MMIP II.
Neda did not specify the changes involving the Cebu project, but the expiry of the loans for the project had been an issue.
The Cebu BRT project, which costs US$198 million (P10.189 billion), is funded by the French government through Agence Française de Développement (Eur 50.89 million or $57.4 million); the International Bank for Reconstruction and Development ($116 million), the lending arm of the World Bank Group; and the Clean Technology Fund ($25 million) administered by the World Bank.
The $57.4 million AFD loan expired last March 31.
The $116 million World Bank loan was also set to expire last June 30. However, last June 11, the World Bank’s website showed that the closing date of the loan had been extended by three months to September 30 instead.
Chinese contractor Hunan Road and Bridge Construction Group Co. Ltd. began work on Package 1 of the Cebu BRT project last February.
NAIA rehab
Balisacan said the NAIA rehabilitation is under the Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA).
“The goal of the project is to address longstanding issues at NAIA such as the inadequate capacity of passenger terminal buildings and restricted aircraft movement,” he said.
“It aims to increase the current annual airport capacity from 35 million to at least 62 million passengers. The NAIA PPP Project also aims to increase air traffic movement from 40 to 48 per hour. The project is also expected to improve the overall passenger experience and service quality to prevent long queues, lengthy waiting time and other passenger experiences,” he added.
Earlier, the DOTr said the bidding for the operations, maintenance and upgrading of NAIA would be held in September 2023.
Balisacan said they aim to start the project as early as next year.
Calls to rehabilitate NAIA grew even louder following the January 1 incident where nearly 300 flights to and from Manila, with over 56,000 passengers, were either cancelled, diverted and delayed due to a technical glitch that stemmed from the power outage that resulted in the loss of communication, radio, radar, and internet at the Air Traffic Management System (ATMS).
The ATMS serves as the facility for controlling and overseeing all inbound and outbound flights and overflights within the Philippine airspace.
The Senate committee on public services said the incident was caused by malfunctioning equipment vital for the operations, particularly of the Uninterruptible Power Supply.
In May, more than 40 flights to and from Manila were either delayed or cancelled due to a power outage that hit the NAIA Terminal 3.
The MIAA shut down the country’s airspace on May 17 for the conduct of scheduled major maintenance.
Laguindingan Airport
For the Laguindingan Airport in Misamis Oriental, the private sector will take over its maintenance and operations.
Balisacan said the project aims to integrate concepts of green and connected airports into its design and operation and use digital technologies to enhance passenger experience.
The project will be implemented by the DOTr and the Civil Aviation Authority of the Philippines (Caap).
In 2019, Aboitiz InfraCapital Inc. was granted original proponent status by Caap for its unsolicited proposal for the upgrade, expansion, operation and maintenance of the airport.
Since it was opened in 2013, the passenger traffic capacity of the Laguindingan airport, which was 1.6 million per year, grew to an estimated two million in 2018.
It is expected to grow further in the coming years as more investments come in.
Samar Pacific Coastal Road 2
The Samar project involves the construction of the Laoang II Bridge and Calomotan Bridge, as well as the development of existing roads between the mainland of Samar Asland and Laoang, which is about 15 kilometers.
It is expected to improve connectivity in the region and promote economic growth.
National policy
Balisacan also confirmed the Proposed Adoption of a National Policy on Infrastructure Sector Master Plans, which aims to harmonize and rationalize the formulation of master plans for the infrastructure sector.
He said the policy will ensure coordination, synergy and responsiveness of the sector to emerging issues.
Balisacan said an executive order will be issued to strengthen the implementation of this policy nationwide. (SunStar Philippines, with CTL)