MANILA, Philippines – A special lounge for dignitaries will be constructed at the Ninoy Aquino International Airport Terminal 3 in time to welcome guests of the Asia Pacific Economic Cooperation (APEC) summit to be hosted by the Philippines next year.
The government will spend a total of P10.32 million for the project which will be bid out to qualified contractors.
According to the Manila International Airport Authority (MIAA), those interested in bidding can inspect the site reserved for the lounge on April 11. They should submit their bids and eligibility documents on April 30.
Prospective contractors should have a valid Philippine Contractors Accreditation Board (PCAB) license. Sole proprietorships, partnerships, or organizations with at least 75% interest or outstanding capital stock belonging to citizens of the Philippines are the only ones qualified to bid.
Contractors should also have completed a similar project worth at least 50% of the final budget for contract.
The bidding will be conducted through open competitive bidding procedures using non-discretionary “pass/fail” criterion as specified in the revised implementing rules and regulations of the Government Procurement Reform Act (Republic Act No 9184).
All foreign airlines have been asked by the Department of Transportation and Communication (DOTC) to move to NAIA 3 in order to decongest NAIA 1 which has had to handle 7 to 8 million people compared to its original capacity of 4 to 4.5 million.
So far, only Delta Airlines has agreed to transfer its operations to NAIA 3.
NAIA 3 is undergoing retrofitting and rehabilitation costing P1.9 billion. The overhaul, being carried out by Japanese company Takenaka Corporation, is expected to be completed by July. This is one month ahead of its original August deadline.
The rehabilitation works at Terminal 3 include baggage handling, flight information displays, computer terminals, gate coordination, and fire protection systems.
The goal is to improve the experience of passeners flying in and out of Manila, among others, to allow a faster and more pleasant experience for passengers flying in and out of Manila.
NAIA 1 facelift
NAIA 1, tagged the world’s worst airport in 2013, is also set to undergo a makeover.
A P1.3 billion facelift by DM Consunji Incorporated (DMCI) will include architectural works, structural retrofitting, improvement of mechanical, electrical, plumbing, and fire protection facilities.
Aside from preparing for the APEC summit, the improvement of the two airports is to enable the facilities to accommodate a projected increase in passengers.
Latest data from the MIAA showed the number of domestic and international passengers increased by 3.1% – from 31.877 in 2012 to 32.865 million last year.
But the DOTC has its eyes on even bigger fish.
By 2027, the agency hopes to operationalize a new international airport with the joint development of NAIA in Manila and the Clark International Airport in Pampanga.
This new airport will accommodate an increase in passengers in the Greater Capital Region, as predicted by a study by the Japan International Cooperation Agency.
By 2040, the number of passengers in the region will hit 106.7 million passengers, up from 31.88 million in 2012.
THE GOVERNMENT has paid an initial $8 million (about P346 million) as down payment for the multimillion Manila international airport development project that a Japanese contractor first bagged in 1997.
The government has also given Takenaka Corp. the go signal to start the completion of the system works of the Ninoy Aquino International Airport Terminal 3 (NAIA-3) for it to become fully operational.
“We’ve made our initial down payment of 20% ($8 million) in September but real work would start in November,” Transportation Secretary Joseph Emilio A. Abaya said in a chance interview yesterday.
Takenaka bagged the $40-million rehabilitation project last August.
“They [Takenaka] are abiding by the July 2014 deadline,” Mr. Abaya added.
The rehabilitation works, which is mainly the completion of the 23 system works requirement of NAIA-3, include baggage handling, flight information displays, computer terminals, gate coordination, and fire protection systems, among others.
Mr. Abaya said that of the 23 system works that are required by the government, Takenaka has already procured 14.
Mr. Abaya said that the funding for the payment came from the 2013 budget.
“No need for an item for 2014,” he said, explaining that the whole payment for the project was already included in this year’s budget.
With the said completion, the Department of Transportation and Communications (DoTC) expects NAIA Terminal 3’s annual passenger capacity to double to 13 million passengers from almost 6 million passengers a year. The said terminal posts at least 37,000 passengers daily.
Takenaka was the primary subcontractor of Philippine International Air Terminals Co., Inc. (Piatco), builder of NAIA-3, which had taken the government to court over the cancellation of its contract and the expropriation of the facility.
The NAIA-3 contract, awarded to Piatco in 1997 during the Estrada administration, was declared irregular by the Arroyo government in 2002.
CASE FOR COMPENSATION
Partly owned by Germany’s Fraport AG, Piatco had won the build-operate-transfer (BOT) contract to build NAIA-3.
After the government halted construction of NAIA-3, Piatco and Fraport lodged cases before the International Chamber of Commerce (ICC) in Singapore and the International Center for Settlement of Investment Disputes (ICSID) in Washington DC, respectively.
Takenaka had joined in the dispute to seek compensation.
ICSID and ICC have since ruled in favor of the Philippines after the Supreme Court nullified the government’s contract with Piatco.
Last August, the third division of the Court of Appeals (CA) ordered the government to pay Piatco $371 million, including a 6% annual interest, as just compensation for the takeover of NAIA-3.
This was an amendment to the 2011 decision of the Pasay City Regional Trial Court (RTC) Branch 117, which pegged the just compensation at $116.35 million.
But former Transportation now Local Interior Secretary Manuel A. Roxas II earlier said subsequent government negotiations with Takenaka resulted in both parties agreeing that the Japanese firm would just execute the airport system project, instead of getting compensation.
Mr. Roxas had earlier said talks with Takenaka had been made possible after a Pasay City court allowed the government to set up an escrow account to pay contractors behind the project.
Once NAIA-3 is fully operational, a portion of NAIA-1 operations will be transferred to the new facility in order to decongest the ageing main airport, which is presently undergoing structural rehabilitation.
Currently, only a third of NAIA-3 is equipped with airport systems and only half of the terminal is being utilized, Octavio F. Lina, NAIA-3 terminal manager, had said in November last year.
The DoTC earlier said completion of NAIA-3 coincides with other projects aimed at enhancing the quality and safety of Philippine aviation.
These include the adoption of a world-class aviation CNS/ATM (Communications, Navigation, and Surveillance/Air Traffic Management) System, which will be fully operational by November 2015.
Other improvement projects for various airports across the country are the P434.5-million Upgrading of Night Landing Operations Project, and the P258.9-million Installation/Upgrading of Airfield Lighting Systems and Upgrading of Power Supply Systems Project.
Source: Lorenz Christoffer S. Marasigan, BusinessWorld (http://www.bworldonline.com/content.php?section=Nation&title=Gov%E2%80%99t-pays-initial-$8-million-for-NAIA-3&id=78790)