Metro Pacific Investment Corp. (MPIC), is considering backing out from the group which will rehabilitate and expand the Ninoy Aquino International Airport (NAIA) for P102 billion.
MPIC is one of the seven conglomerates that form the NAIA Consortium, proponent of the project.
With just a few days before this month’s deadline for the National Economic Development Authority (NEDA) to finalize the terms and condition of the concession agreement, MPIC chairman Manuel Pangilinan admitted it would be “tough for the company to join the NAIA project” citing the issues on real property tax (RPT) and the people mover component of the project.
“It’s going to be a tough one, for us to join. We’re thinking about it (possibility to pull out),”
Pangilinan told reporters Thursday at the sidelines of the inspection of the NLEX Harbor link C3-R10.
Pangilinan said MPIC will decide soon, but he clarified that he can only speak for the company, and not for the entire consortium.
“Soon (we will make a decision) , it’s unfair getting the consortium wait for us, ” Pangilinan said when asked onthe deadline for the decision.
Other consortium members include Aboitiz InfraCapital Inc; AC Infrastructure Holdings Corp.; Alliance Global Group Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp. and JG Summit Holdings Inc.
Manila International Airport Authority (MIAA), operator of NAIA is not subject to payment of RPT on properties it owns, but the private sector has to pay RPT once it takes over the operation.
However, the airport will still be owned by the government and will be turned over by private sector after the 15-year concession period.
Payment of RPT has been opposed by MPIC as this would have significant impact on the consortium’s return on investment.
The NAIA Consortium ‘s proposal to build a bus rapid transit system to connect the four terminals in NAIA was rejected by MIAA due to security concerns.
Vince Dizon, presidential adviser for flagship programs and projects, said in a press conference at the finance department on Friday the government and the NAIA consortium need to resolve the remaining issue left in the project “within the next few days,”
“It’s a technical issue that is now being negotiated by the MIAA, Department of Transportation, and the proponent. Once that is resolved, then …(it) should move forward,” he added.
