Kalayaan Hall, Malacañan Palace
March 18, 2024
“Today, we are celebrating a different kind of departure honor, because after more than 30 years, the comprehensive modernization of Manila International Airport in partnership with the private sector finally is taking off,” conveyed President Ferdinand R. Marcos Jr. after witnessing the signing of the landmark concession agreement for the Ninoy Aquino International Airport (NAIA) Public-Private Partnership Project in a ceremony at the Kalayaan Hall, Malacañan Palace.
Signed by Department of Transportation (DOTr) Secretary Jaime Bautista, Manila International Airport Authority (MIAA) General Manager Eric Ines and San Miguel Corporation (SMC) President and Chief Executive Officer (CEO) Ramon Ang, the agreement signals the start of the modernization of the country’s main gateway covering all facilities of the airport such as the runways, terminals and other facilities, and is poised to improve the overall passenger experience and service quality at the NAIA.
“Let us roll up our sleeves, let us be reminded that the bottom line of the Manila International Airport’s resurgence is not what it will bring to the coffers of government but the comfort it will bring to its passengers,” the Chief Executive said, emphasizing that the undertaking will ramp up the NAIA’s annual passenger capacity from 35 million passengers to 62 million passengers. The runway capacity will also increase at least 48 air traffic movements at peak hourly rate.
The concessionaire for the NAIA PPP Project is the SMC-SAP & Company Consortium composed of conglomerates San Miguel Holdings Corporation, RMM Asian Logistics, Inc., RLW Aviation Development, Inc. and Incheon International Airport Corporation (IIAC). During the submission of bids, the group offered to share with the government 82.16% of future gross revenues, excluding Passenger Service Charges. Following today’s signing, these consortium members shall incorporate into a Special Purpose Company (SPC) and will be called New NAIA InfraCorp.
“The PPP Project is the fruit of unity, of vision, of purpose. It highlights the great potential of public-private partnerships in accelerating infrastructure development. By bringing in the expertise of the private sector, we are pushing forward infrastructure projects to meet international standards and to provide the public with state-of-the-art services,” President Marcos Jr. added.
The NAIA PPP Project is expected to generate PhP900 billion of earnings for the national government or about PhP36 billion annually over the course of its full 25-year concession period. This will allow the government to redirect its earnings to other social and infrastructure projects.
“This PPP Project showcases what can happen when we join hands in solving the nation’s problems… Let us keep working together, let’s brave the turbulence that might come, so we may arrive at the destiny and the destination that we have dreamed for, for our people,” the President concluded in his message.
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