PHILIPPINES. A consortium led by Filipino conglomerate San Miguel Corp (SMC) has been awarded the contract to modernise and operate the Manila Ninoy Aquino International Airport (NAIA).
As reported, the SMC SAP & Company consortium includes South Korea’s Incheon International Airport Corp and Filipino companies RLW Aviation Development Inc and RMM Asian Logistics Inc.
The group outbid other competitors by offering the national government an 82.2% share of future gross revenues, excluding passenger service charges.
The Department of Transportation (DOTr) said the Ps170.6 billion (US$3.04 billion) project is intended to elevate passenger experience, enhance efficiency in operations and expand airport capacity.
The project involves a 15-year concession agreement with the possibility of a ten-year extension. According to DOTr, the concessionaire will be required to “rehabilitate the airport’s passenger terminals and airside facilities and develop commercial assets and utility systems”.
In a 16 February press briefing streamed live on Facebook, DOTr Secretary Jaime Bautista announced: “Today, we are pleased to announce that we will award this project to the winning bidder, the SMC-SAP group.”
He added: “The pre-qualification bids and awards committee has just completed the evaluation and made the recommendation approved by the board of MIAA [Manila International Airport Authority].”
The signing of the concession agreement is scheduled for 15 March, with the SMC SAP & Company consortium expected to manage Manila Airport by September.
The DOTr noted that after signing the agreement, the SMC SAP & Company will be required to pay an upfront fee of Ps30 billion (US$534.3 million).
Further details of the rehabilitation project have yet to be disclosed.
In a statement, San Miguel Corporation said: “We are grateful to the Department of Transportation, led by Secretary Jaime Bautista, for conducting a fair and comprehensive bidding process. We also commend President Ferdinand Marcos Jr’s administration for its commitment to modernising NAIA.
“Our proposal is designed not only to elevate NAIA to world-class standards but also to ensure that the government benefits from the most advantageous revenue-sharing agreement. This aims to secure a favourable outcome for our shareholders while prioritising fairness and long-term sustainability over immediate profits.
“Recognising the weight of the responsibility entrusted to us, we are committed to collaborating closely with the government and our various stakeholders, harnessing every resource available to us, to transform NAIA into a modern international gateway that Filipinos will be proud of.” ✈
