NAIA’s P170.6 Billion Rehabilitation Contract to be Signed on March 18
NAIA – The signing of the P170.6-billion rehabilitation agreement for Ninoy Aquino International Airport (NAIA) is scheduled for March 18.
The contract for the P170.6-billion rehabilitation of the Ninoy Aquino International Airport is scheduled to be signed on March 18 by the Department of Transportation (DOTr) and the SAP & Co. Consortium led by San Miguel Corp. (SMC). This signifies the official commencement of the essential upgrade for the country’s primary international gateway.
Transportation Secretary Jaime Bautista confirmed the progress during an event in Quezon City last week, expressing that they are on schedule for the contract signing. The consortium, led by Ramon Ang, has affirmed its financial commitment to the project, having proposed an ambitious 82.16-percent revenue share with the government to secure the contract.
Anticipated to generate P900 billion for the government over the 25-year concession period, the public-private partnership project includes a P30-billion upfront payment, a P2-billion annuity payment, and revenue sharing. Bautista mentioned ongoing work on post-award documents before the official signing.
Comprising SMC, RLW Aviation Development Inc., RMM Asian Logistics Inc., and Incheon International Airport Corp., the consortium emerged as the winner of the bidding race on February 16, surpassing GMR Airports Consortium and Manila International Airport Consortium.
Based on a report from Inquirer, the concession period for the SMC-led group is 15 years, extendable by an additional 10 years based on a performance evaluation during the 8th year. The consortium is tasked with revamping passenger terminals, runway, aircraft parking area, and airfield lighting, along with constructing facilities for intermodal transfers at the terminals.
Expectations are set for the consortium to deliver initial improvements at the airport as early as next year, focusing on reducing waiting times at check-in and immigration counters, providing more parking slots, and increasing seating capacity in pre-departure areas. The rehabilitation aims to boost Naia’s capacity to approximately 60 million passengers annually from the current 32 million, addressing the existing strain on its capacity.
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