Philippines just turned down 4.9 billion offer to upgrade main airport: Details inside

MANILA – The government of the Philippines has turned down a multi-billion offer to upgrade its main international airport, despite the worsening condition of the facility.

The decision to reject a $4.9 billion offer from a local consortium to operate and upgrade the airport was made by an inter-agency panel chaired by President Ferdinand Marcos Jr.

The panel declared on Wednesday it preferred to invite bids for the airport modernization project, which would cost 170.6 billion pesos based on the government’s estimates. The National Economic and Development Authority (NEDA) confirmed that a solicited proposal was accepted and the upgrade of the airport would be done by the Department of Transportation and the Manila International Airport Authority.

“Among the approved projects is the solicited proposal to rehabilitate, operate, expand and transfer the Ninoy Aquino International Airport PPP (public-private partnership) project, also known as the solicited NAIA PPP project,” NEDA Secretary Arsenio Balisacan said at a briefing.

The $4.9 billion offer is related to the Ninoy Aquino International Airport which is one of the world’s worst international gateways and needs an upgrade to end chronic flight delays, address congestion, and improve facilities.

The airport’s debilitating condition can be gauged from the fact that in January and May, over 300 flights were disrupted merely due to power outages at the airport.

Attempts have been made in the past to upgrade the facility but plans were not executed mainly due to disputes between authorities and contractors.

The government-approved project aims to boost annual airport capacity to at least 62 million passengers and increase air traffic movement to 48 aircraft per hour; currently, the passenger handling capacity is 35 million, and air traffic movement is 40 aircraft per hour, Gulf Newes reported.

When the offer was turned down, the local consortium chose to keep quiet but said in a statement the airport’s modernization required a long-term and comprehensive solution.

The Philippines, a Southeast Asian archipelago, is a nation with a rich cultural heritage and breathtaking landscapes. With over 7,000 islands, it offers diverse experiences, from pristine beaches and lush rainforests to historical sites and vibrant cities. Known for warm hospitality and festivals, the Philippines is a captivating destination for travelers.

The official number of tourists who visited the Philippines in 2019 was 8.26 million, according to data from the Philippine Department of Tourism.

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