Manila International Airport

[Solblanc]

But the Chinese have lots of experience reclaiming land in our waters :D

[Tigz]

I don't know how much the Tsinos can work out complex terminal structures built on reclaimed land that have jacks to compensate for settling. They are good with claiming contested islands though and building airstrips on shoals. Don't know what kind of terminals they put up on their fortresses in Spratly's but they tested it with a commercial airline to prove its primarily for civilian use, sans the decent terminal. Of course we are not idiots to buy that. They did something on this African country in exchange for oil and mining rights, its a terminal alright and sort of copied from Princess Juliana terminal, albeit in the cheapest way. No doubt the Japs can do way much better.

[Arianespace]

They are building a container port complex in Cavite which also involves massive land reclamation. The same thing you see in Subic. Land reclamation is the easy part, making it stable with weight is the hard part. Anyway, it does not involve reclamation works for airport project. But they could bid for it if Japan says no. When detailed engineering is funded by JICA, expect the funds too, and of course Japanese Contractors. What you are hearing now is just the FS. The Technical part comes next and after that the funding source. Still way to go.

maortega15 wrote

I'm reading that a MoU for the Philippine Global Gateway Project has been signed in China amounting to US$20B. What's the difference between that and the one in Japan? I would actually prefer the Japanese build the airport as they build nicer airports than the Chinese in my opinion. And they have expertise in building offshore airports.

[Eurest]

If you want to see it in person, it's now displayed at the lobby at HQ

[Arianespace]

AARC is lobbying hard to get Sangley at all cost. It failed to get the nod three times already, two during Pnoy term, another one during Tugade. Its the same reason why SMC failed. Well, they revised their dreams again, this time operating it as a budget airport with SM.  I already mentioned this plan before.

Anyway, What's the catch? 13 million budget passengers out of NAIA. It should be a good thing if they dont require relocation of present traffic but only the excesses, yes the ones that shoud be going to Clark, but the thing is they do want the relocation not only of Genav but all LCC operations out of NAIA which prompted Tugade to say NO. And you wont hear that in the news. So they went to the President who told them to talk to Tugade just the same.

Should they succeed though, the bigger terminal complex should be in the bag. Mind you, the windfall is 1000 times greater than PIATCO. Why we should be worried? Because it won't be completed in our lifetime.

As for the rest, they are on the news right now.

[Solblanc]

Okay, how will the government be able to force LCC traffic to go to Sangley? First, Cebu Pacific would be the biggest complainer, right? Since they're 100% LCC, this affects them lock stock and barrel.

Second, how would they define LCC? And how would they legally define it in a way that would stop any existing LCC from just changing one or two aspects of their service to be classified as a FSC?

Finally, if all LCC ops are indeed transfered to Sangley in the short term, that would lengthen the lifespan of NAIA dramatically. Nobody would ever want to move out of there as it's the prized airport near the city.

[Arianespace]

You did not get my post. I was kind of posting between the lines so to speak as not to get the ire of some groups that may come across this forum.

Anyway, the airport proponent wants to transfer all LCC operations from NAIA to Sangley as a condition of contract. That is already a "red" line. You cannot do that. A similar proposal to develop Clark failed because the arab developer demanded transfer of all LCC operations out of MNL. Offer similar to that should be treated with utmost caution. The lobby though is very lucrative.

There is a plan though to transfer all turboprop operations to Sangley, kinda like London City setup before together with genav, making NAIA all jet. Airlines are receptive of the idea. That idea and nothing else.

As Cherie Mercado put it, you don't put demands on the government. You can make proposal but you cannot make demands.

[Solblanc]

My point was, nobody can demand of the government an assurance that a specific amount of traffic will be forced to relocate to an airport. Even if the government were to say yes to such a demand, the implementation will be filled with court cases every step of the way. Stakes are just too high.

Something small like turboprop operations being relocated can be doable. But to demand for all LCC traffic? I'd like to see that happen. If PDuts just says yes, how will people go about it?

[Arianespace]

Exactly. Turboprop operations are viable for relocation if all the airlines agree to it, which at this stage they all support. CEB and PAL has nowhere to fly their numerous ATRs and Q400s coming in two years time and that is not counting ATX and the rest. So having this support airport near MNL is sensible for them. After all they can fit almost every one there.

If the airport expansion project in 2017 is approve by DU30 it should be a go not just for Genav but Turboprop operations. Because what will happen next is the bidding of the landside development projects under propose PPP for O&M contract. There will also be widening of the access road under emergency powers. Imagine, its 10 times bigger than Caticlan so there should be plenty of bidders to this project which should be ready by 2019.  It is at this stage where proponent should only come in and not before. Extensive lobbying before it happens is quite alarming. And then they started calling Tugade names because the sec aint listening to them. Mind you he has a brilliant air team that manages to ward off Gordon's blow.

[Arianespace]

The first trance of the Sangley Airport Development Project with a price tag of 1B pesos will be approved by DU30 on December 22. The much anticipated airport expansion is starting to roll.

[Arianespace]

I've been ranting about this schemes lately and despite Ang's closeness to DU30, his SMC airport went to the door like the other one. This one though is made public. You would learn a thing or two here.This is good read so I'm posting the entire content to see the perspective.

Neda: No unsolicited bids for Manila airport

By Cai Ordinario
January 2, 2017

The National Economic and Development Authority (Neda) has advised against considering unsolicited proposals from parties interested in constructing the New Manila International Airport (NMIA).

The Neda made this recommendation in its letter to Transportation  Secretary Arthur P. Tugade dated October 27, 2016, signed by Neda Undersecretary and, at that time, officer in charge, Rolando G. Tungpalan.

The letter was sent by the Neda in response to the Department of Transportation’s (DOTr) request to review the unsolicited airport proposal made by San Miguel Holdings Corp. (SMHC).

“Given the numerous proposals received with regard to the development of the NMIA, you may wish to subject the project to a competitive bidding rather than through unsolicited mode, unless SMHC has been accorded by your department an original proponent status,” according to a copy of the letter obtained by the BusinessMirror.  With the current administration’s openness to unsolicited projects, there are at least five groups keen on undertaking the construction of the NMIA.

These groups include SMCH, which is reviving its $10-billion airport proposal in Bulacan under the Aquino administration; the DM Wenceslao group, which proposed a combined airport and shipping port project in Sangley; and the Sy and Tieng group, which proposed a $50-billion airport and economic zone in Sangley.

The Neda also said the New San Jose Builders group has also proposed to include an airport in its Manila Bay flood defense project, while the Okada group is looking to increase its investments in the country by participating in the bidding for the NMIA. If the DOTr decides to conduct competitive bidding for the project, this means that the performance requirements or project specifications will be drawn up by the government.

These requirements may include components, such as the capacity of the terminal, the number of runways, access to and from the airport, and other key aspects that will allow the NMIA to meet the country’s needs.

The DOTr will also have to finalize the bid parameters, such as sovereign guarantees or premium payments and the award will be granted to the group that offers the highest net present value.

This means that if sovereign guarantees were chosen, the government will award according to the lowest subsidy sought. In terms of premium payments, the award will go to the company/group that will provide the highest offer.

Going through a competitive bidding for a project will also promote transparency and prevent naysayers from claiming that the choice of the unsolicited proponent was made through a “sweetheart deal.”

The unsolicited proposal, if the DOTr will push through with this mode, will still require a Swiss Challenge, a process by which other private groups could match the bid of the proponent.

However, the primary actor in the NMIA is still the DOTr. Whether it decides to implement the NMIA through unsolicited or solicited mode, the fact remains that the country is already in dire need of a new international airport to decongest the Naia.

“They have not made a decision yet, that’s the problem. In the last two Infracom [Infrastructure committee] meetings, we were forcing the issue already because we need to decide on an international airport because we need one,” a Neda source told the BusinessMirror.

The Neda estimates that building a brand-new international airport will take over five years to complete. This is mainly because of the extent of civil works and the standards needed to be met to make the airport up to code.

The Neda said the development of the NMIA was identified by the DOTr as one of its Core Investment Programs and Projects through the Public Investment Program Online.

Earlier, Tugade said he is open to allow the private sector to build airports. He said the only condition is for the private sector to undertake the project on their own without asking the government for guarantees or funds to build the airport.

The SMHC proposal was initially pitched to the Aquino administration three years ago. However, San Miguel’s proposal was shot down by the Cabinet.

By the way Sangley Airport Development Project is bidded out already. That is super fast in DOTC years.

[tigz]

How firm is that statement by Neda when the words "advise" and "recommend" are being used in the letter. Does it mean DOTC will have the discretion whether or not to follow Neda's advise and recommendation? I was expecting the word "No" and in a directive manner.

[Arianespace]

In billion pesos contract DOTr doesn't have the power to say what it want, NEDA does so it just right that it was referred to them. I already discussed this scenario before and even the President has to abide by the decision of the Board because any wrong decision will have adverse effect to the economy.

Contrary to the report, DOTr already has set its decision. There are just some people that try to muddle the issue and I've been telling you guys this stuff before. What has not been set is how to fund its massive expenditure. $10 billion is not a small amount of money you can be wrong with.

[tigz]

Then that is good if DOT will need to abide with NEDA. Now what I'm seeing here is that the current Sangley runway will undergo rehab to start with and a modest PTB will be erected to accommodate pax for small airline operators like Skyjet and Airswift as well as large charters correct?, and all genav from NAIA will relocate?

[Arianespace]

That would be correct. Skyjet and Airswift are using terminal 4.

[Solblanc]

Interesting developments.

BTW, how's the JICA feasibility study on the Manila Airport going? Is it still going on? Isn't it supposed to be finished soon?

[tigz]

Well PAF could have vacated Sangley way back then even before Mar Roxas issued the memo in his time. Tambler Airport in GenSan was abandoned long time ago then PAF training took residence only to revert back to Lipa.

[Richard]

And did Duterte approve the first trance at Sangley on Dec. 22? I did not read anything in the papers......

[Arianespace]

What do you think?

For Richard

Why bother a newspaper when picture paints a thousand words.
Anyway, you can see the news now.

[Richard]

Thanks Ariane for sending the picture. Unfortunately I cannot open solblank´s post referring to your image, so I have to admit, I can´t follow up anymore. What is Duterte signing ? Sorry to ask once again.....