Six conglomerates in the Philippines, including a tycoon-owned construction firm, have agreed to form a consortium to upgrade the Ninoy Aquino International Airport (NAIA) after years of battling to grab the $1-billion project.
The conglomerates are Aboitiz Equity Ventures Inc, Ayala Corp, Alliance Global Group Inc (AGI), Filinvest Development Corp (FDC), JG Summit Holdings Inc (JGS), and Metro Pacific Investments Corp (MPIC), including Asia’s Emerging Dragon Corp, a heavy and civil engineering construction company owned by business magnate Lucio Tan, who also owns Philippine Airlines.
JG Summit made the disclosure on Thursday (December 21) noting all companies agreed to form a consortium to rehabilitate, operate, and maintain NAIA, formerly known as the Manila International Airport (MIA). The group plans to submit an unsolicited proposal to the Department of Transportation.
“The consortium believes that the NAIA will continue to be a strategic gateway for our country and a key hub of airline operations for many more years,” JG Summit said in its statement. “The consortium will work with foreign technical partners with proven world-class track records and experiences in airport operations to improve, upgrade, and enhance the operational efficiencies of NAIA covering both landside and airside facilities.”
JG Summit said the unsolicited proposal is intended to help accelerate the government’s “Build Build Build” program.
Although other airports are being developed outside Metro Manila, the consortium believes augmenting NAIA’s capacity is the quickest way to address airport congestion and will even promote greater economic benefit and sustainability for the whole country.
NAIA’s yearly average of 39.5 million passengers capacity is seen to increase by 11 million if the facility receives a proper upgrade. Even its hourly aircraft movements (landing and take-off) is expected to improve from 40 to 48 movements per hour.
“Numerous foreign and local experts have highlighted the advantage of keeping an airport within city limits. Like other major cities in the world, experts recommend an in-city airport and another one outside the metropolis to complement it. Megacities that benefit from a two-airport set-up include Tokyo (Haneda and Narita) and London (Gatwick and Heathrow),” JG Summit added.