PH conglomerates form consortium to upgrade NAIA international airport

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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.

Aboitiz and Ayala joined the consortium through their subsidiaries Aboitiz InfraCapital Inc, and AC Infrastructure Holdings Corp.

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.

Also Read:

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Philippines: San Miguel, MPIC mull $10b airport joint venture

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Philippines: Ayala acquires renewable energy developer BCE

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.