Consumer Group Challenges Provisions in NAIA Takeover Agreement

MANILA – ConsumerUnion-Philippines Inc. has filed a petition seeking to nullify several provisions in the concession agreement for the Ninoy Aquino International Airport (NAIA) Public-Private Partnership (PPP) project. The agreement handed over the airport’s operations and maintenance to San Miguel-led New NAIA Infra Corp. (NNIC).

The petition for declaratory relief, filed before the Regional Trial Court of Manila, argues that certain provisions of the agreement and the 2024 Revised Manila International Airport Authority (MIAA) Administrative Order (AO) are contrary to law, discriminatory, and against public policy.

Provisions Under Question

The consumer group is asking the court to declare the following provisions invalid:

1. Sections 1.1, 4.2, 4.2.1, and 5.4 of the 2024 Revised MIAA AO, alleging violations of the PPP Code and improper delegation of powers.
2. Section 3.1 of the same AO for being arbitrary and discriminatory.
3. Sections 24.3.2, 24.5, 24.5.1, 27.1.3, and 31 of the Concession Agreement for allegedly being against public policy.

The group particularly opposes provisions allowing NNIC to impose Non-Regulated Fees and Charges without government oversight, calling this a violation of the PPP Code and a detriment to public interest.

Key Arguments

• Unregulated Charges: The petitioners contend that the DOTr and MIAA improperly granted NNIC “unbridled power” to set certain fees and charges without regulatory approval.
• Unreasonable Rates: Rates adopted in the 2024 MIAA Revised AO are described as “unjust and unreasonable,” citing NNIC’s commitment to return 82.16% of gross revenues to the government as an indicator of inflated charges.
• Deficit Payment Clause: The group claims the provision guaranteeing fee approvals or liability for non-approval is unconstitutional, disadvantageous to the government, and contrary to public policy.

Government and NNIC’s Response

MIAA spokesperson Chris Bendijo stated that the process leading to the concession agreement was transparent and in accordance with law but declined further comment pending review of the petition.

NNIC has yet to issue a response as of this report.

NAIA Rehabilitation Goals

NNIC took over NAIA operations in September 2024 after winning the government bidding process. The company has committed to invest P144 billion to address longstanding issues, including undercapacity and congestion.

Key improvements include:

• Increasing passenger capacity from 35 million to 62 million annually.
• Expanding air traffic movements from 40 to 48 per hour.
• Upgrading passenger terminal buildings, adding parking slots, and enhancing transport connectivity.

The agreement is also expected to reduce flight delays and cancellations caused by facility issues, improving overall passenger experience.