A consortium led by conglomerate San Miguel Corp offered to give the national government 82 percent of airport revenues under its bid to operate and upgrade the country’s main international airport, the Department of Transportation (DOTr) said.
SMC SAP & Co Consortium is one of the three bidders still in the running to win a government contract to modernize the Ninoy Aquino International Airport (NAIA) after one of the investors, Asian Airport Consortium, was disqualified over technical issues.
The offers of the two other bidders – India’s GMR Airports Consortium and Manila International Airport Consortium, composed of the country’s richest families, were way below SMC SAP & Co’s group at 33 percent and 26 percent respectively.
The winning bidder will be announced on February 14, and the agreement, which covers a 15-year concession that is extendable by another 10 years, is expected to be signed next month.
NAIA handled a record 48 million passengers in 2019 despite its design capacity of only 32 million passengers.
The upgraded airport aims to serve at least 60 million passengers annually from the current 35 million.
Previous attempts to modernize the gateway were abandoned due to disputes between airport authorities, contractors, and potential bidders.
SMC in a statement said it is ready to take on the modernization of NAIA.
“Our aim is to elevate NAIA to world-class standard, ensuring an exceptional experience for all travelers with first-rate services and facilities. Our commitment is to ensure this project brings significant value and advantages to our nation, our government, and our kababayans,” said Ramon Ang, San Miguel chief executive officer.
Ang emphasized the consortium’s financial proposal prioritizes benefits to the government and the Filipino people.
Ang also pointed to the potential synergies of NAIA with San Miguel’s own New Manila International Airport project in Bulacan.
“This concurrent development is expected to enhance operational efficiencies, reduce costs, and optimize flight schedules, contributing to a more connected and accessible Philippines poised for future growth,” he said.
SMC SAP & Company includes San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development Inc., and Incheon International Airport Corp. (IIAC) .
San Miguel said each participant in the consortium brings unique strengths to the project.
Ang also highlighted San Miguel’s strategic collaboration with IIAC, which focuses on developing an airport ecosystem that promotes better connectivity, high-quality service, and operational efficiency, alongside offering affordable and accessible travel options for Filipinos.
IIAC is the developer and operator of the Incheon International Airport, the largest airport in South Korea, which opened in 2001.
Incheon International Airport was ranked by air transport research firm Skytrax as the 4th best airport in the world in 2022 and the world’s first airport to be awarded the highest level of customer experience by the trade association of the world’s airports, Airports Council International. (Reuters and Ruelle Castro)
