Philippines NEDA approves New Manila Airport concession agreement

Philippines’s National Economic and Development Authority (NEDA) approved (24-Dec-2018) negotiation results of the concession agreement between the Philippines Department of Transportation and San Miguel Corporation for the New Manila International Airport project. The PPP proposal involves construction operation, and maintenance of the airport on a 2500 hectare area of land in Bulakan, north of Manila Bay. The proposal entails a total project cost of PHP735.6 billion (USD13.9 billion).

Source: CAPA

Bidding for Clark airport O&M a landmark accomplishment for PH gov’t

The success of the bidding for the Clark International Airport operations and maintenance (O&M) contract shows the seriousness of the Duterte administration to “Build, Build, Build.”

The Bases Conversion and Development Authority (BCDA) in partnership with the Department of Transportation (DOTr) recently awarded the O&M contract to the four-member North Luzon Airport Consortium (NLAC), which includes Changi Airport Group, the operator of the number one airport in the world, Singapore Changi Airport.

The successful selection process proves that government is committed to providing our citizens with world-class, efficient and comfortable infrastructure, as envisioned under the President’s Build Build Build program.

The Clark airport expansion project was done in record time, within the first two years of President Duterte’s term—a major accomplishment considering that development plans for the airport were neglected for years. 

The BCDA Special Bids and Awards Committee for the O&M contract conducted a stringent and very transparent bidding process, which was guided by the International Finance Corporation of the World Bank (IFC-WB) as its transaction adviser, and the Public-Private Partnership Center (PPPC).

In a year-end press conference held by the PPP Center last December 20, Executive Director Ferdinand Pecson said that the bidding process for the Clark airport O&M contract was aboveboard and no group was favorably chosen over another.

The Clark International Airport is the first project being implemented using the hybrid PPP mode to fast-track infrastructure development under the Build Build Build program.

The concession agreement for the O&M contract has also been cleared by the Office of the Government Corporate Counsel and the Department of Finance (DOF), and is seen to protect not only the interest of the present government, but also future governments from undue and contingent risks and liabilities. 

Finance Secretary Carlos Dominguez said in an earlier statement that DOF had meticulously scrutinized the concession agreements for the Clark airport to ensure the government would not incur unwarranted contingent liabilities, like what happened to the Mactan-Cebu airport contract.

“If you compare the guarantees that were given to the Cebu contract comparing to what we have for the Clark and the Bulacan, you will see the big difference from before,” Dominguez said. “We’re going to get those, the contract in Clark, and the contract for the Bulacan airport with no government liability at all,” he added.

Meanwhile, citing the key features of the Bulacan airport concession agreement, Socioeconomic Planning Secretary Ernesto Pernia added that these projects “certainly raise the bar on PPP projects.”

NLAC’s financial bid offer of 18.25% annual gross revenue percentage share is almost twice the minimum rate set at 10% as approved by the NEDA Board. The bid offer, according to the PPPC, is more than 80 percent better than the minimum rate set.

The other three members of NLAC are Filinvest Development Corporation, JG Summit Holdings, Inc. and Philippine Airport Ground Support Solutions, Inc. Each consortium member has a vast experience in property development, air transportation and airport operations, especially Changi Airports Philippines Pte. Ltd., which is 100%-owned by Changi Airports International Pte. Ltd.

Singapore Changi Airport was ranked first in Skytrax’s top 100 airports for 2018, and was voted as one of the best airports in the world for six consecutive years. (BCDA).

Source: Philippines Information Agency

Kerala government can bid for Thiruvananthapuram airport, says Jayant Sinha

The Kerala government can bid for operating and managing the Thiruvananthapuram airport at the time of leasing out the aerodrome, the Civil Aviation Ministry said Thursday.

The Centre’s decision to lease out the Thiruvananthapuram airport on public private partnership basis has been opposed by the Kerala government.

In November, the central government approved leasing out six airports for operation, management and development under public private partnership. These are Airports Authority of India (AAI) aerodromes at Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru.

Minister of State for Civil Aviation Jayant Sinha told the Lok Sabha that the Kerala government can be a bidder for the Thiruvananthapuram airport.

To a query on whether the Kerala government has requested the Centre to re-consider the decision and allow forming a Special Purpose Vehicle (SPV) to run the airport, Sinha replied in the affirmative.

«In response to the same, the government has offered State Government of Kerala to be one of the bidders,» the minister said.

Earlier this month, Kerala Chief Minister Pinarayi Vijayan appealed to the Centre not to lease out the Thiruvananthapuram airport and requested it to entrust the aerodrome’s management with the state government.

The six airports are to be leased out through the Public Private Partnership Appraisal Committee (PPPAC).

«An Empowered Group of Secretaries (EGoS) has been constituted under the chairmanship of CEO, NITI Aayog to decide on any issue falling beyond the scope of PPPAC,» Sinha said in the written reply. 
 

Source: ZeeBusiness

Twenty companies eye concession of Montenegro’s Podgorica, Tivat airports

A total of 20 companies have expressed interest in obtaining a concession contract for the operation of Montenegro’s two international airports – in Tivat and Podgorica, transport minister Osman Nurkovic said.

“Twenty renowned companies from all over the world are seriously interested in the concession of the Montenegrin airports. The government will try to immediately make decisions right after the New Year,” Nurkovic said, according to a Twitter post published by the Montenegrin government on Wednesday.

Nurkovic said in August the government plans to invite bids for a concession agreement with a term of 25 to 30 years for the operation of Tivat and Podgorica airports.

Montenegro hopes to find a company ready to invest at least 120 million euro ($141.2 million) in the two airports, prime minister Dusko Markovic said in September.

The airports in Podgorica and Tivat serviced a total of 1.206 million passengers in the first nine months of 2018, up 10.7% on the year, state-owned airport operator Aerodromi Crne Gore said last month.

Source: SeeNews