MIAA set a timeline of 24 to 36 months to complete upgrades to the facilities and passenger processing systems of the Ninoy Aquino International Airport (NAIA). These projects include:

• Replacing the passenger boarding bridges
• Replacing chillers
• Upgrading taxiways
• Expanding the coverage of its CCTV system
• Digitizing airport operations and passenger systems

The agency also announced the “immediate construction” of six immigration counters in NAIA Terminal 3, increasing the total counters to 36.

A separate immigration annex in NAIA Terminal 3, set to open in December, is also being constructed to serve overseas Filipino workers, persons with disabilities, senior citizens, and diplomats. It will have six four-man counters with 24 immigration officers.

Electrical audit underway

Following another power outage that hit NAIA Terminal 3 last June 9, MIAA gave assurances that it would complete the electrical audit of the terminal with the aid of Meralco and MServ, a wholly owned subsidiary of Meralco.

Filipino tycoon Manuel V. Pangilinan, chairman of Meralco, earlier offered to conduct the electrical audit for free as a way to help the government map out projects to modernize and upgrade the terminal.

But although the electrical audit was pitched as a solution after the Labor Day fiasco, it also ended up being the cause of the next outage on June 9.

In an incident report, MServ clarified that its personnel “accidentally left grounding conductors attached to an electrical equipment during a testing activity,” which caused an electrical fault that eventually led to the 37-minute power interruption.

Besides the outages on May 1 and June 9, the entire Philippine airspace was also shut down on New Year’s Day after several components of the air traffic management system broke down. (READ: What caused the January 1 air traffic mess and what should be done about it?)

“Times are very challenging for us now; but be that as it may, we are taking steps and exploring all ways possible to achieve our deliverables based on our established priorities,” MIAA officer-in-charge Bryan Co said in a statement on Wednesday, June 14. – Rappler.com

MANILA, Philippines – Another power outage has struck the Ninoy Aquino International Airport (NAIA) Terminal 3, barely a month since it last happened. This comes days after the government advanced talks regarding the privatization of the operation of the airport, the Philippines’ main international gateway.

“It’s unfortunate po that today, again, we would like to apologize because of the interruption. Nagkaroon po tayo ng brief 37-minute interruption dito sa (We had a brief 37-minute interruption here in) T3 that caused some delays for our flights,” MIAA Officer-in-Charge Bryan Co said in a press briefing on Friday, June 9.

The power outage hit NAIA Terminal 3 at 12:52 pm. Commercial power from Meralco was restored by 1:29 pm.

This time, it was a “procedural lapse” that caused the power outage. This morning, MIAA shut down some substations to conduct its electrical audit, one of the solutions identified following the  Labor Day outage.

But as they were re-energizing the substations at around 12:50 pm, it turned out that a “testing cable” was left in the Roadway 2 Substation, which caused a shortage and led to the Terminal 3’s power to trip.

As a result, five domestic flights and two international flights experienced delays, with possible “consequential delays” to other fights. No flights were canceled. The power outage also caused a build-up of passengers in the immigration area because it took about 15 to 20 minutes for the immigration computer system to come back online.

This now marks the third major power disruption to the airport this year, which includes the New Year’s Day air traffic fiasco and Labor Day power outage. NAIA Terminal 3, in particular, has a history of being struck by power outages, such as in 2016 and again in September 2022.

Privatization talks

The latest outage happened exactly a week after the Department of Transportation (DOTr) and MIAA announced that it had prepared a joint proposal for NAIA’s rehabilitation. This would take the shape of a solicited Private-Public Partnership (PPP) project, paving the way for private companies eager to bid.

And just two days ago, a DOTr official said that the privatization of the country’s main gateway could happen as early as the first quarter of next year.

This wasn’t the first time that a major outage hit the airport following discussions on privatization. On May 1, Labor Day, NAIA Terminal 3 was also paralyzed by an hours-long power outage, causing 40 flights to be canceled. That too came just as the government received an unsolicited proposal for a multibillion rehabilitation project to modernize NAIA.

However, Co dismissed allegations that the power interruptions happening at the airport were related to these discussions.

“As I mentioned, we identified already the root cause, and it’s part of a procedural issue that should have been followed in terms of energizing or de-energizing a substation,” Co said. “At least, we can rule out those other angles na nagsasabi na (that say) it’s possible in relation to privatization.”

“Our stance as far as MIAA is concerned, whether privatization is there or not, MIAA has the mandate to improve, operate, and of course ensure na reliable po ang ating NAIA airport (that our airport is reliable),” he added.

What happened during the last outage?

Last time this happened, a fault current had triggered the main circuit breaker of NAIA Terminal 3 – but exactly where in the electrical system this came from remains a mystery.

In the meantime, MIAA relied on its generators to provide power, but there was another problem: the generator set could only support 30% of NAIA Terminal 3’s load. This was only enough for “mission critical areas,” which included: 

• Check-in systems
• Immigration system
• Final security x-ray
• Aerobridges
• Baggage carousel
• Elevators, escalators, walkalators
• Air-conditioning systems for select areas
• Lights

Because of this lack of genset power, Transportation Secretary Jaime Bautista said that several areas in the terminal had no air-conditioning on May 1. 

Co said that the MIAA has since started the procurement of additional gensets with a capacity of 6 megawatts, with the bid opening scheduled for next week. – Rappler.com

[Vantage Point] Are airport glitches avoidable?

“We can say that by the first quarter of next year, it is doable that there will be a conclusion, meaning to say an award that could possibly be proclaimed by the government,” Lim said in an ANC Headstart interview on Wednesday, June 7.

However, the undersecretary stressed that this would be a “tough and tight schedule,” as the timetable would include discussions with the different participants and an ocular inspection of the facilities conducted by the winning private concessionaire.

“There will be negotiations also as to specific terms and conditions. So, that takes time. And if there are more than one participant, we will have to talk to all of them in the process. So, it will take time,” he added.

Just last Friday, June 2, the DOTr and Manila International Airport Authority (MIAA) announced that it had prepared a joint proposal for NAIA’s rehabilitation through a solicited Private-Public Partnership (PPP) project. The proposal has been submitted to the National Economic and Development Authority (NEDA) board for approval. 

The DOTr is also reviewing a separate P100-billion unsolicited proposal submitted by a super consortium of the country’s biggest conglomerates.

How much will the upgrade cost?

Under the government’s joint proposal, the winning private concessionaire will be required to upgrade the airport’s aging equipment and facilities – an investment that is expected to cost up to P141 billion.

“We also expect the winning bidder to make a commitment to invest in the facilities. So, we expect the total project cost is about P141 billion. That is the investment that is required to upgrade, rehabilitate, and expand NAIA,” Lim said.

Having the private sector handle these upgrades means that the government could save billions of pesos since expenses needed to support NAIA will no longer be included in the national budget.

Besides this investment commitment, the winning bidder must provide an upfront payment of around P30 billion, with annuity payments of around P2 billion. The total revenue generated from both commercial and non-commercial operations will also be shared between the private concessionaire and the government.

“Malaki din ‘yan (That’s also quite big). We expect around…in the billions, to receive billions from that. Because there’s a lot of upside when you operate NAIA and introduce efficiencies. And when you say introduce efficiencies, that means you can process more passengers. You can take in more flights,” Lim said.

In return, the winning private concessionaire will have 15 years to run the airport and recover its investment.

Who will own the airport?

Lim clarified that they can consider foreign bidders as part of the project, pointing to the amendments in the Public Service Act, which allows full foreign ownership of airport facilities.

Although the PPP project will transfer operations of NAIA to the private sector, the ownership of NAIA will not change hands.

“Most people ask, are we selling anything? No. All of these assets will continue to belong to the government. But it’s being granted as a concession. So, it’s like a franchise that you’re granting with terms and conditions for operating the public facility,” Lim said.

The project also does not include the management of the country’s airspace, which will continue to be handled by the Civil Aviation Authority of the Philippines.

Handing over the operations of the NAIA to the private sector would also loosen the “constraints that hobble a government-owned corporation,” according to Lim. NAIA is managed by the Manila International Airport Authority or MIAA.

“[A] government-owned facility is unable to really break away from the strict government procurement rules that slow down the process and allows a facility to respond quickly. You’re unable to really beef up. You know, MIAA, for example, has a plantilla dated 1988,” he said.

What about the employees?

Lim also emphasized that there would generally be no loss of employment following the PPP project. After the airport is privatized, employees will have a six-month period during which they will be offered employment. 

“They’ll have to prove themselves in terms of their work competency and work habits,” he said.

When it comes to security personnel, the current law enforcement agencies will continue to provide the manpower. These include MIAA’s Airport Police Department, and the Philippine National Police’s Aviation Security Group.

However, the private concessionaire is expected to beef up the workforce with “highly technical personnel.”

“Now insofar as the private concessionaire is concerned, we would expect them not to replicate the existing workforce, but bring in the highly technical personnel that is needed to introduce the technology – in the terminal, in the control tower, and of course the management expertise that they also bring,” Lim said. – Rappler.com

DOTr chief bares plans for NAIA, among region’s ‘most stressful’ airports

The two agencies have submitted their proposal to the National Economic and Development Authority (NEDA) board for approval. The project, a solicited public private partnership deal, would “increase the capacity of NAIA and ensure safe operations while significantly improving the passenger experience,” the DOTr said in a press statement on Friday, June 2.

Here are some of the project’s goals:

• Higher passenger capacity
• Shorter waiting and processing times
• More comfortable and modern facilities
• Better connectivity between terminals

Under the PPP agreement, a private concessionaire will acquire modern air traffic control equipment, rehabilitate the airport’s runways and taxiways, and upgrade the terminal’s existing facilities. 

In return, the private concessionaire will have 15 years to run the airport and make a profit from its investment before turning it over to the government.

The DOTr said that this project would address the growing demand for air travel in the Greater Capital Region – which often refers to Metro Manila, Bulacan, Rizal, Cavite, and Laguna – while additional airports are built in the regions.

“Cebu and Clark have shown that when given the chance, private companies can provide excellent airport services to Filipino travelers and visitors to the Philippines,” DOTr Secretary Jaime Bautista said in a statement.

“With this project, it is our goal that travelers to and from Manila, our country’s main international gateway, also benefit from the improvements in efficiency and service that world class airport operators and investors can bring,” he added.

NAIA has been hounded by controversies – from being named the worst business class airport in the world to facing multiple complaints of passenger theft by security screening officers. The latest was on May 1, when a power outage disrupted the flights of 9,000 passengers while on New Year’s Day, the failure of air traffic equipment paralyzed the entire Philippine airspace and left more than 78,000 passengers stranded.

Must Read

What caused the January 1 air traffic mess and what should be done about it?

What about the MIAC proposal?

The DOTr and MIAA are considering both solicited and unsolicited proposals for the airport’s rehabilitation, with the Asian Development Bank (ADB) acting as a transaction advisor for both modes. 

A solicited proposal is submitted by a company in response to a request made by the government, which usually already outlines certain terms and conditions. Meanwhile, an unsolicited proposal is submitted before any such request is made by the government.

Earlier in April – and days before the Labor Day airport fiasco – a super consortium of the country’s biggest conglomerates submitted a P100-billion unsolicited proposal for the rehabilitation of NAIA.

The new consortium – called the Manila International Airport Consortium (MIAC) – includes many of the conglomerates that were part of an older proposal for the same project, which eventually fell apart during the height of the global pandemic.

Although the DOTr has already acknowledged receipt of MIAC’s unsolicited proposal, Bautista said that his department was still in the process of conducting a “completion check” on it.

“The initial study is to have a solicited [proposal]. That’s the reason why we engaged ADB for help, for us to be able to entertain a solicited proposal. But since there is this unsolicited proposal, we have to work on it…. We are given 35 days to do the completion check, and that’s what we’re doing,” Bautista told reporters on May 10.

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Newsbreak Chats: Navigating the NAIA turbulence

– Rappler.com

The DOJ referred to a legal opinion released on August 18, 1988, that the DPWH “shall bear the expenses only for serviceable pipes/sewers affected by DPWH infrastructure projects.”

DPWH Secretary Manuel Bonoan asked for the justice department’s guidance on how to settle the issue of the department’s widening projects causing the relocation of water pipelines and affecting road right-of-way (RROW).

The DPWH was clarifying if it would still necessary that they enter into a contract with the LWUA when the latter is already their attached agency.

Justice Secretary Jesus Crispin Remulla said in a four-page legal opinion that the DPWH does not have control over the LWUA.

“We advise that DPWH has to enter into a MOA with LWUA on the RROW and the cost of relocation, among others,” the DOJ said. “Stated differently, any party may enter into a MOA, regardless of whether a party is an attached agency of another party.”

There had already been a proposed memorandum of agreement between the LWUA and the Philippine Association of Water Districts.

Aside from the contract, the DPWH also asked the DOJ about the modes of payment and whether compensation could be sourced from the department’s right-of-way funds.

The justice department however did not answer these questions, and instead deferred to the Department of Budget and Management.

“We regret that we cannot issue an opinion thereon as the matter falls within the ambit of the Department of Budget and Management. Pursuant to its mandate, the DBM shall be responsible for the efficient and effective utilization of government funds and revenues,” the DOJ said. – Rappler.com

MANILA, Philippines – The Philippines’ main gateway, the Ninoy Aquino International Airport (NAIA), was again crippled by a power outage on a holiday, this time on Labor Day, May 1.

The NAIA Terminal 3 experienced the power outage at about 1:05 am on May 1. Initial investigations point to a “main breaker problem,” according to electric distribution firm Manila Electric Company (Meralco).

“Pinagaaralan nga namin bakit nagkaroon ng mga ganitong problema ulit. Tinitignan nila kung nagkaroon ng power surge ang Meralco (We’re studying how this problem happened again. We’re checking with Meralco if a power surge happened),” Transportation Secretary Jaime Bautista said in an interview with radio DZBB.

“Ngayon naman, normal ang operations natin, although hindi lahat ng area ay may air-conditioning ngayon. Maayos naman ‘yung pagpasok ng mga pasahero. Medyo nagkaroon ng konting congestion doon sa check-in area kanina, although tuloy-tuloy naman ‘yung mga pagpasok ng pasahero. Sa immigration naman, tuloy-tuloy naman ang kanilang pagtanggap ng pasahero,” Bautista added.

(Right now, operations have normalized, allthough not all areas have air-conditioning. The flow of passengers is good. There was some congestion in the check-in area awhile ago, although passengers could still enter. At the immigration area, they continuously process passengers.)

The airport terminal is currently being powered by a generator. According to the Manila International Airport Authority (MIAA), this limits the functions of the terminal.

“Standby power is now supplying electricity to critical facilities enabling computer systems of airlines and Immigration to function partially and enable processing of both inbound and outbound passengers. As a result, delayed flights shall be expected,” the MIAA said in a statement.

As of 8:10 am on May 1, 40 flights have already been canceled due to the power outage, with more expected to be delayed. Here is the list of cancelled flights:

Cebu Pacific (5J)

• 5J 504/503 Manila-Tuguegarao-Manila
• 5J 325/326 Manila-Daraga-Manila
• 5J 383/384 Manila-Cagayan-Manila
• 5J 196/197 Manila- Cauayan-Manila
• 5J 703/704 Manila-Dipolog-Manila
• 5J 637/638 Manila- Puerto Princesa-Manila
• 5J 911/912 Manila- Caticlan-Manila
• 5J 553/554 Manila-Cebu-Manila
• 5J 617/618 Manila- Panglao-Manila
• 5J 483/484 Manila- Bacolod-Manila
• 5J 951/952 Manila-Davao-Manila
• 5J 793/794 Manila- Butuan-Manila
• 5J 859/860 Manila- Zamboanga-Manila
• 5J 993/994 Manila- General Santos-Manila
• 5J 781/782 Manila- Ozamiz-Manila
• 5J 909/910 Manila-Caticlan-Manila
• 5J 449/450 Manila-Iloilo-Manila
• 5J 659/660 Manila-Tacloban-Manila
• 5J 887/888 Manila- Cotabato-Manila
• 5J 773/774 Manila- Pagadian-Manila

As of 9:30 am, the MIAA said that operations have normalized and that electricity has been restored in NAIA Terminal 3.

“Nagpapaumanhin po kami doon sa mga pasaherong naapektuhan. ‘Yun po ang aming inaatupag ngayon, kung paano maibsan ang kanilang mga issues dito sa airport,” MIAA General Manager Cesar Chiong said in an interview on Radyo5.

Earlier this year, the NAIA suffered “technical issues” with its power supply on New Year’s Day, affecting more than 78,000 passengers with flight cancellations or delays. – Rappler.com

[Vantage Point] Are airport glitches avoidable?

The power plants will have an annual generation capacity of around 202 gigawatt hours, powering 84,000 households. It is also expected to displace over 100,000 tons of coal per year, according to Prime Infra and its project partner, PowerChina B7 Philippines Corporation.

The facilities serve as an expansion of the 100-megawatt facility of Solar Tanauan Corporation, a company acquired by Razon from Solar Philippines founder Leandro Leviste last February.

“Our project here at Solar Tanauan Corporation embodies the values that we, as a company, and I personally align with. We have a strong ESG (environmental, social, and governance) commitment and sustainability focus and as such, our goal is to develop and operate our assets in a socially relevant manner,” said Solar Tanauan Corporation chair Katrina Razon during the groundbreaking ceremony held on Wednesday, April 12.

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A post shared by ꩜ Katrina Razon ꩜ (@katrinarazon)

Other executives and officials present during the groundbreaking were Prime Infra CEO Guillaume Lucci, Solar Tanauan Corporation director Donato Almeda, Calabarzon Regional Development Council Chair Batangas Governor Hermilando Mandanas, Cavite Governor Jonvic Remulla, Marogondon Mayor Lawrence Arca, Embassy of People’s Republic of China in the Philippines Minister Counsellor Yang Guoliang, and chief representative of PowerChina to the Philippines Zhao Zhihao. 

“The Philippines has sufficient sunlight and great potential for solar energy development. The development of photovoltaic projects not only alleviate the shortage of electricity consumption, optimize the energy structure, but also promote the employment of residents and improve people’s livelihood and well-being,” said Yang.

The Tanauan and Maragondon solar farms are the latest addition to Prime Infra’s portfolio in the renewable energy space. The projects currently are in various stages of development with a total gross installed capacity of 5,700 megawatts of solar generation and 4,000 megawatt hours of energy storage system. – Dennis Abrina/Rappler.com

The Department of Transportation (DOTr), along with the San Miguel Corporation (SMC), and Quezon City local government, broke ground for the project on Friday, April 14. The turnback guideway, situated along West Avenue and North Avenue in Quezon City, will allow MRT7 trains to loop around and change directions upon terminating at the North Triangle Common Station.

“This portion of the alignment is critical to ensuring that train services would remain on schedule across the entire alignment from North Avenue to San Jose del Monte,” railway assistant secretary Jorjette Aquino said on Friday.

“This pre-construction works’ program will guarantee the least possible disruption in the travel experience of both pedestrians and road users along West Avenue while the MRT 7 infrastructure is in place,” she added.

Metro Manila urban cable car? DOTr teases new rail projects

The first ten stations of the MRT7 are expected to become operational by the third quarter of 2025, according to railway undersecretary Cesar Chavez. 

“MRT7, 56% completed na [ang] civil works (around 56% of civil works is completed),” Chavez said in a chance interview on Tuesday, April 11. “Malaki na ang progress (We’ve made a lot of progress).”

Meanwhile, the Caloocan and Bulacan stations are expected to be completed in 2027.

“Sobrang delayed na sila. Remember, 2003 pa ito tapos ‘yung contract singing, 2014. Construction, 2016. Delayed na sila,” Chavez added. 

(They’re already very delayed. Remember, this began in 2003, and then the contract signing was in 2014. Construction started in 2016. They’re delayed.) 

The MRT7, which costs around P77 billion, will have 14 stations from North Avenue in Quezon City to San Jose del Monte in Bulacan. The SMC project, which has been hounded by right-of-way issues, was originally scheduled to start full operations in December 2022, before being delayed further to 2023.

Once completed, the railway line is envisioned to service about 800,000 daily commuters, reducing travel time from Quezon City to Bulacan from three hours to 35 minutes. – Rappler.com

The platform barriers would be “an additional safety measure to prevent passengers from falling from the platform to the tracks, whether intentional or unintentional,” Railways Assistant Secretary and MRT3 Officer-in-Charge Jorjette Aquino said in a statement on Thursday, April 13.

“However, due to budgetary constraints, the proposals to establish platform barriers have not yet materialized. The DOTr-MRT3 will still pursue the proposal,” she added, referring to the Department of Transportation.

This comes after a 73-year-old female passenger jumped onto the southbound tracks of the MRT3 Quezon Avenue Station on Wednesday morning, April 12.

The passenger was rescued from the tracks and loaded onto an ambulance at around 12:54 pm. She was brought to the East Avenue Medical Center, but was declared dead as of 2:20 pm.

“In the meantime, station personnel and the security services provided will be instructed to implement strict measures to prevent the passengers from crossing the yellow line/marker in the platforms while the trains have not yet come to a full stop at the stations. They will also continue to profile passengers on out-of-the-normal movements,” Aquino said.

Aside from the MRT3, the Light Rail Transit Lines 1 and 2 also lack safety barriers. (READ: DOTr approves LRT1, LRT2 fare hike)

According to Aquino, ongoing railway projects such as the North-South Commuter Railway and Metro Manila Subway will include platform screen doors. – Rappler.com

“There are other rail projects in the pipeline. Here are some teasers – a Skytrain between Fort Bonifacio and Makati, MRT10 and MRT11, LRT6 in Cavite, a Cebu monorail, and the Metro Manila urban cable car project,” Bautista said in an event on Wednesday, April 12, as he gave updates on the current state of transportation in the Philippines.

Though these projects may still be in the early planning phase, they are not entirely new. Former DOTr secretary Arthur Tugade had previously pushed for the establishment of a Metro Manila cable car system, citing his experience in Bolivia, which has the world’s largest system of cable cars.

Under Tugade, a cable car system for Metro Manila underwent a France-funded feasibility study. In 2021, the proposed Marikina-Ortigas cable car project was endorsed to the National Economic and Development Authority (NEDA).

Bautista also said that the DOTr was looking for private investors for the following projects:

• PNR North Long-Haul, which reaches the Ilocos Norte and Cagayan regions
• PNR South Long-Haul, which stretches to the Bicol region
• Subic-Clark Railway, which connects to the freeport zones of Subic Bay and Clark
• Mindanao Railway, which will be the first railway in Mindanao

The Transportation Secretary also said that he has formally asked the Asian Development Bank to assist in looking for “the most qualified private operators” of the Metro Manila Subway and the North-South Commuter Railway once completed.

Ongoing projects

Bautista also said that the LRT1 Cavite Extension project is slated to commence partial operations by September 2024. It hopes to cut travel time between Baclaran and Sucat to ten minutes.

The opening of the Unified Grand Central Station, or the Common Station, will also be pushed further back from the original date of May 2023.

“We visited the facility two weeks ago. Marami pang dapat ayusin. Unang-una ’yung Automated Fare Collection System. There are some things we need to settle. Also ’yung signaling system din,” Bautista said.

(There’s still plenty of things to fix. First is the Automated Fare Collection System. There are some things we need to settle. We also have to fix the signaling system.)

Bautista said that it will hopefully open within the year, just as the LRT1 connection to the Common Station is set to finish as well.

The Common Station will serve to connect the three train lines of the Light Rail Transit Line 1 (LRT1), Metro Rail Transit Line 3 (MRT3), and Metro Rail Transit Line 7 (MRT7).

Meanwhile, the first ten stations of the long-delayed MRT7 are expected to become operational by the third quarter of 2025, according to Railway Undersecretary Cesar Chavez. The Caloocan and Bulacan stations are still expected to be completed in 2027.

“MRT7, 56% completed na [ang] civil works (around 56% of civil works is completed),” Chavez said in a chance interview on Tuesday, April 11. “Malaki na ang progress (We’ve made a lot of progress).”

The MRT7, which costs around P77 billion, will have 14 stations from North Avenue in Quezon City to San Jose del Monte in Bulacan. The project, which has been hounded by right-of-way issues, was originally scheduled to start full operations in December 2022, before being delayed further to 2023. 

“Sobrang delayed na sila. Remember, 2003 pa ito tapos ‘yung contract singing, 2014. Construction, 2016. Delayed na sila,” Chavez added. 

(They’re already very delayed. Remember, this began in 2003, and then the contract signing was in 2014. Construction started in 2016. They’re delayed.) – Rappler.com