The government plans to sell the 30-year-old Ninoy Aquino International Airport, (Naia) Terminal 1 in Parañaque to raise an estimated $2.5 billion (roughly P100 billion) to build more terminals in Clark, Pampanga.
But the plan “will not happen overnight or within one to three years,” said Transportation Secretary Manuel Roxas II, who revealed it on Wednesday, ironically, on the heels of reports that Naia 1 was voted the world’s worst airport.
“The customer is always right, this will serve as a challenge to do what we have to do faster and better,” Roxas said about the airport’s ranking. “There are already plans and ongoing actions but clearly this is not enough so we will expand our efforts.”
These plans include phasing out and selling the terminal in order to pay for the cost of the proposed Clark
International Airport that will meet the long-term airport needs of the country, and boost the country’s tourism industry.
In stressing that the privatization plan was not in the immediate future, Roxas said: “If the growth is very high, we may keep two airports. But if the growth is just what’s projected, we may have only Clark and then sell it [Naia] to pay for the transfer,” he said.
The privatization of Naia 1, the DOTC said, could raise revenues of up to $2.5 billion—enough to fund the construction of the new international gateway in Clark, which is four times bigger than the Naia complex.
“Just like in Hong Kong when they sold the old Kai Tak airport in Kowloon, which paid for the transfer to the newer and expanded Chek Lap Kok airport on Lantau Island,” Roxas said.
But given the Naia 1’s reputation, the government must first improve the airport for it to fetch that price.
“There’s potential,” said University of the Philippines economist Ernesto Pernia, citing the terminal’s location. “But it has to be spruced up and improved. At its current state, I don’t know.”
University of Asia and the Pacific economist Victor Abola added: “I think Cebu Pacific may be interested, as they will likely be eased out from Terminal 3. Or it could be PAL. Of course, the price will be low since it is old, and needs a lot of remodeling. In short, at the right price, there will be a buyer.”
Another option for the government is to reclaim land around the Naia, but Roxas said this appears “unreasonable” with only Talim Island in Rizal having a big enough area to be used as an alternative.
With the huge cost involved in the expansion plan, the less expensive Clark airport is a better option, Roxas said.
A study by the DOTC showed that Naia has already reached its saturation point, and there is not much room for expansion. The rated capacity of all four Naia terminals is about 32 million passengers a year, and is expected to hit 30 million passengers this year. It is not only reaching the limit runway-wise, but terminal wise, as well.
“The Naia facility is more than 30 years old and the last rehabilitation was done years ago. This is not an excuse but a fact, so we will do what we can faster,” said Roxas.
He said the government is studying all possible options in achieving cost efficiency in constructing a “globally upgraded” international airport. This is to realize value for money in what can turn out to be a huge multibillion- dollar international airport expansion project.
Making the Diosdado Macapagal International Airport the country’s premier gateway is expected to solve aircraft congestion at Naia and even transform the town of Mabalacat, Pampanga, as the “next Makati” north of Manila.
For easy access, the DOTC is developing the NorthRail, which will serve as an airport link by connecting the Caloocan line to the central business district in Makati, and Mabalacat as the end station.
“The NorthRail project originally started as an airport link. Caloocan is 20 kilometers from the central business district and Mabalacat is 15 kilometers short of Clark. What started out as an airport express became a commuter with 12 stops, that’s why we proposed to reconfigure it, and that’s what we’re working now,” Roxas said.
(With Cai Ordinario)
