The NAIA PPP project has been in the works for three decades, spanning six administrations. It has finally turned into a reality under the Marcos, Jr. administration,” Secretary Recto said.
Manila, Philippines — Finance Secretary Ralph G. Recto has invited the Manila International Airport Authority (MIAA) Board’s new endorsement to grant an agreement to a triumphant private bidder for the restoration of the Ninoy Aquino International Airport terminal (NAIA) – the biggest solicited Public-Private Organization (PPP) project under President Ferdinand R. Marcos, Jr.
“This is certainly a welcome development for this long overdue project. NAIA has been operating beyond capacity for 9 years, leading to poor service and passenger inconvenience,” Secretary Recto said.
With an expected task cost of PHP 170.6 billion, the requested proposition to restore NAIA means to address the longstanding difficulties of undercapacity and underinvestment in the country’s primary air passage.
This solicited proposal points to projects distinguished by the executing organization from the list of their projects that are of priority and the preference of the private proponent performed through a public bidding process.
The Department of Finance’s (DOF) Privatization and Corporate Affairs Group (PCAG) is liable for assessing requested and spontaneous PPP propositions, which go through a thorough screening process before they are submitted to the Investment Coordination Committee (ICC) and the National Economic and Development Authority (NEDA) Board.
On February 16, 2024, the MIAA board granted the agreement for the task to the SMC-SAP Consortium, which presented the largest bid sum and is also sharing 82.16% of future gross revenues to the governing body – traveler administration charges excluded.
The SMC SAP Company Consortium is composed of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp
It is expected to restore, work, advance, and keep up with the NAIA terminal, which incorporates enhancements to its runways, four terminals, and different offices.
The expected public government incomes adding up to PHP 900 billion from the said bargain incorporate installments from the triumphant bidder of the following: a PHP 30 billion payment, a PHP 2 billion yearly installment, and 82.16% public government revenue share, not including traveler administration charges.