The Asian Development Bank (ADB) has asked the government to push back the bid submission for the P170.6-billion Ninoy Aquino International Airport (NAIA) modernization project by a month to attract more bidders and enhance competition.
In a document, the ADB, as transaction advisor, has recommended the extension of bid submission to Jan. 29, 2024, from December 27, to give bidders more time to prepare and submit bids, which will result in more competition and a better financial outcome for the government.
Four prospective bidders have asked for an extension of bid submission, the ADB added.
“Of the six prospective bidders which have been participating actively in pre-bid activities, four — including large, credible international airport operators with no prior investment in the Philippines — have requested an extension. They have asked for more time to request and analyze additional information from the Manila International Airport Authority (MIAA) and Department of Transportation (DOTr), and to secure their internal corporate approvals, which will take longer in light of the upcoming holiday season,” ADB said.
If the bid submission is retained on December 27, ADB expects only two bidders will participate in the bidding.
“We expect two prospective bidders with participation by large local corporations to submit bids. They have both submitted unsolicited proposals for NAIA in the past and are thus significantly more familiar with NAIA than the other four prospective bidders,” the ADB said.
As of November 16, eight companies have bought bid documents and are expected to submit bids this December, according to the DOTr.
These are GMR Airports International, San Miguel Holdings Corp., Manila International Airport Consortium, Spark 888 Management, Asian Airport Consortium, Cengiz Insaat Sanayi ve Ticaret A.S., Incheon Airport Corp. and Limak Group of Turkiye.
“We strongly believe that extending the bid submission date would attract more bids, thus resulting in greater competition and a better financial outcome for the government,” the ADB said.