THE consortium led by San Miguel Corp. and partner Incheon International Airport Corp. submitted the highest bid amount for the P170.6-billion Naia privatization deal, making it the front-runner in the auction.
During the bidding ceremonies on Thursday, the Department of Transportation (DOTr) revealed the bid amounts submitted by the complying groups, with SMC-SAP & Co. Consortium offering to share 82.16 percent of future gross revenues — excluding passenger service charges—with the government.
GMR Airports Consortium, meanwhile, offered a bid amount of 33.30-percent government share, while the Manila International Airport Consortium submitted a bid amount of 25.9-percent government share.
Under the terms of reference for the deal, the winning consortium shall provide an upfront payment of P30 billion to the government as premium and another P2 billion in annuity payments.
It is also required to remit a certain percentage of the revenues to the government. This will be the main bid parameter for the auction —the higher the proposed share of the government in the Naia’s revenues are, the better.
The Asian Airport Consortium, composed of the Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders International Inc., and PT Angkasa Pura II, did not make the final cut after its technical proposal was deemed non-compliant.
SMC-SAP and Co. Consortium consists of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp.
Manila International Airport Consortium is composed of GIP EM MIAC Pte. Ltd, Aboitiz InfraCapital Inc., AC Infrastructure Holdings Inc., Alliance Global Infracorp Development Inc., Asia’s Emerging Dragon Corp., Filinvest Development Corp. and JG Summit Holdings Corp.
GMR Airports Consortium is a partnership among GMR Airports International BV, Cavitex Holdings Inc. and House of Investments Inc.
On Thursday, the agency started the opening and evaluation of the financial proposals for the Naia Privatization deal.
SMC President Ramon S. Ang said on Thursday that the financial proposal of SMC was “superior,” highlighting that it prioritizes benefits to the government and the Filipino people.
SMC is also undertaking the development of the New Manila International Airport (NMIA) in Bulacan, which Ang said could create “potential synergies” with Naia.
The Naia Privatization Project is a Rehabilitate-Operate-Expand-Transfer (ROET) deal led by the DOTr and the Manila International Airport Authority (Miaa).
The concession was initially set for 15 years with an option to extend by 10 years as long as the concessionaire is “not in flagrant violation of the concession agreement.”
The Naia Public-Private Partnership (PPP) project seeks to rehabilitate and expand the current three-terminal gateway in Manila. Once completed, its capacity shall be expanded from 35 million passengers per annum (MPPA) to 62 MMPA.
The agency aims to award the P170.6-billion PPP deal by February 15. The agency will then evaluate the compliance of the post-award requirements. It targets to sign the concession agreement on March 15.
Image credits: Nonie Reyes