The winning consortium for the Ninoy Aquino International Airport (NAIA) modernization project has been announced, with the concession agreement projected to generate P900 billion in revenue for the Philippine government over its 25-year contract.
The Department of Transportation (DOTr) states that the agreement will result in P36 billion annually for the government, a marked increase from the P1.78 billion in average annual remittance generated by the Manila International Airport Authority (MIAA) between 2010 and 2023.
According to a press release from the transportation department, this revenue boost will enable the government to bolster social and infrastructure initiatives.
The DOTr awarded the concession to the SMC-SAP Co. Consortium under a solicited public-private partnership (PPP) framework.
The SMC-SAP & Co. Consortium, which comprises San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp., bagged the P170.6 NAIA rehabilitation bid after offering the highest revenue share of 82.16 percent to the government.
The consortium has guaranteed a P30 billion upfront payment and P2 billion annual payments throughout the contract period.
Once SMC starts operating the capital airport, it is expected to work on and improve airside and landside facilities, such as passenger terminal buildings, runways, taxiways, air traffic systems, and terminal interconnectivity, among others.
These improvements are targeted to raise NAIA’s annual operating capacity to 62 million passengers with peak aircraft movements of 48 per hour.
Leave a comment