The new private operator of the country’s premier airport, Ninoy Aquino International Airport (NAIA) plans to build a fifth passenger terminal building (PTB) to augment annual passenger capacity to 62 million in the next three years.
This was announced by Ramon Ang, president and chief executive officer of San Miguel Corp. which leads the NAIA consortium, following the signing yesterday of the concession agreement for the P170.6- billion public-private partnership project.
The new PTB represents the first major improvement under the P122.3- billion committed capital investment over the 25-year concession period of the airport by the New NAIA Infra Corp. which has also prioritized in the first few months of operation the improvement and repair the air conditioning, escalators, elevators, generators, among others.
Secretary Jaime Bautista of the Department of Transpiration (DOTr) and Ang signed the concession agreement in the presence of President Ferdinand Marcos Jr. in Malacanang.
New NAIA Corp. – composed of conglomerates San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp. (IIAC) – is expected to officially take over the operation of NAIA in the next six months or before September this year after the financial closing, according to Bautista.
In a press briefing, Ang said the consortium is ready to start the construction of the new PTB which has a capacity of 35 million annually, within the first six months after securing approval by the DOTr and the Manila International Airport Authority (MIAA).
The new PTB will be built at the Philippine Village Hotel in Pasay which is owned by MIAA.
The current terminals were designed to accommodate 32 million passengers annually.
New NAIA Infra Corp. is expected to spend over P202 billion for the 25-year concession, which includes the P122.3 billion capital outlay, P30 billion upfront payment and P2 billion fixed annual payment or P50 billion which is on top of the 82.16 percent revenue shares that will also be remitted to the government yearly.
To further address the traffic congestion going to NAIA, Ang said the SMC will build a bypass road that will expand the Skyway connecting directly to the NAIA Terminal 3.
With a project cost totaling P170.6 billion, the NAIA PPP Project covers all facilities of the airport such as the runways, terminals, and other facilities, and is poised to improve the overall passenger experience and service quality at the NAIA.
Ang said SMC has secured financing from banks on top of an equity share from the consortium.
Once the NAIA modernization is completed, runway capacity will increase to at least 48 air traffic movements at the peak hourly rate. Passenger capacity is expected to accommodate 62 million passengers annually.
The project is expected to generate P900 billion in earnings for the national government or about P36 billion annually over the course of its full 25-year concession period.
“Our vision for NAIA extends beyond mere rehabilitation. Together with our partner, Incheon, we have assembled a team of experts, focused on implementing immediate improvement, and help us achieve our long-term goal for NAIA,” Ang said.
Marcos said this concession is a major catch-up plan for NAIA and urged the consortium to fulfill its commitments to project, reminding them that rehabilitation is more than just the revenues to be generated but “an investment in our future.”
