Philippines

https://www.cnnphilippines.com/news/2023/6/7/naia-privatization-early-2024.html

The Ninoy Aquino International Airport (NAIA) could possibly be privatized by the first quarter of 2024, a Department of Transportation (DOTr) official said on Wednesday.

“We can say that by the first quarter of next year, it is doable that there will be a conclusion…that could possibly be proclaimed by the government,” Undersecretary for Aviation and Airports Roberto Lim said in an ANC interview, which was also shared by the DOTr in a press release.

Lim noted that the privatization process would take a while, given negotiations between the government and interested private companies.

“If there is more than one participant, we will have to talk to all of them in the process," he said. "So, it will take time, definitely."

The transport official meanwhile allayed concerns over possible job losses from the move.

He said there will be “generally no loss of employment,” as airport personnel will be given the opportunity to stay in their jobs when NAIA is privatized.

Lim also explained that airport assets will still belong to the government, with the role of the private concessionaire limited to operations and management.

“The relationship between MIAA (Manila International Airport Authority) and the concessionaire will be regulator-operator," he said. "The MIAA will continue to operate as a body that will regulate, oversee."

According to Lim, privatization is seen to help introduce efficiencies to NAIA operations.

As a result, he said this will increase the number of passengers and flights, and generate more revenues, which "means larger share for the government."

On June 2, the DOTr and the MIAA submitted to the National Economic and Development Authority their joint proposal on NAIA modernization.

Under the proposed solicited public-private partnership project, the government will require a private concessionaire to invest in modern air traffic control equipment, rehabilitate runways and taxiways, and improve existing terminal facilities.

The DOTr said the concessionaire will have 15 years to operate the airport and recover its investment.