The Department of Transportation (DOTr) is set to sign the concession agreement with SMC SAP & Co. Consortium for the P170.6-billion contract to operate, maintain and rehabilitate Ninoy Aquino International Airport (NAIA).
The contract signing is set on March 18 in Malacanang to be witnessed by President Ferdinand Marcos Jr., the DOTr said.
Last February, the DOTr and the Manila International Airport Authority (MIAA) declared SMC SAP & Co. as the winning bidder for the NAIA modernization project, after submitting the highest bid. It offered 82.16 percent revenue share to the government, excluding passenger service charges.
Aside from the revenue share and upfront payment of P30 billion, the winning consortium also committed to spend P122.3 billion capital outlay over the entire 25-year concession period, or an average of P4.9 billion per year. Although the concession period is initially for 15 years, it is subject to an extension of 10 years.
The DOTr is set to turn over the operation of NAIA to the private consortium in three to six months after signing the concession agreement.
The project scope includes the operation of passenger terminals and related facilities, airside facilities and commercial assets, cargo terminal facilities, maintenance of passenger terminal building, airside and CNS/ATM equipment, and capacity augmentation, including maximizing the utilization of the current airport facilities, enhancement of operational efficiencies and digitalization.
Jaime Bautista, DOTr secretary, has assured the personnel of MIAA that no one will be displaced once the government turns over to the consortium the operation and maintenance of NAIA for its modernization.
Part of the concession agreement is for the concessionaire to offer positions to existing employees of MIAA, according to Bautista.
In a related development, MIAA general manager Eric Ines yesterday met the Airline Operators Council (AOC) and Philippine Airlines (PAL) to discuss the handling of excluded passengers who are denied entry into the country by the Bureau of Immigration.
During the meeting, Ines reminded the airlines’ responsibility over these passengers and the need to bring them back to their country of origin as soon as possible after being handed over to them by the Bureau of Immigration (BI).
“I call upon our airline operators to do their part of the responsibility over passengers who are denied entry into the country. We must remember that though inadmissible, they are still first and foremost, airline passengers. The responsibility of taking care of them does not end there,” Ines said.
The AOC offered to submit to MIAA a proposal on how to address the handling of excluded passengers who inevitably may take time to be flown back to their country of origin. The proposal will be discussed with the BI to ensure that no provisions under the Immigration Act will be violated.
PAL said it will house its excluded passengers in its lounge which is still under construction in NAIA Terminal 1.
Passengers of other airlines with existing lounges in Terminals 1 and 3 may be accommodated inside their lounges.
MIAA has a main lodging facility in Terminal 3 located on the 2nd level with an extension near Gate 116. These rooms have beds, simple storage, a toilet and bath, a charging station, and a simple dining area equipped with a refrigerator and a water station. Combined, these facilities can accommodate 33 passengers.
In NAIA Terminal 1, a new and improved lodging facility is due to open soon. The same provisions are expected for use by passengers.