Allocates ₱122.3 billion for Capital Investment
16 February 2024
The Philippines largest conglomerate has won the right to operate and manage Ninoy Aquino International Airport for the next fifteen (15) years, according to Transport Secretary Jaime J. Bautista, during a media briefing this morning.
San Miguel Corporation subsidiary, SMC SAP Company Consortium, has won the ₱171 billion contract to rehabilitate, operate, and maintain the Philippines premiere gateway.
SMC SAP & Company comprises San Miguel Holdings Corporation (33%), RMM Asian Logistics Inc. (30%), RLW Aviation Development Inc. (27%), Incheon International Airport Corp – Operations and Maintenance Partner (10%).
SMC SAP Company Consortium offered the highest bid of 82.16 percent revenue share to the government, which excludes passenger service charge and aeronautical service charges, at the opening of financial proposals for the Ninoy Aquino International Airport (NAIA) Development Project.
Under the terms of reference, the percentage revenue share to the government is the main bid parameter for the auction. This means the higher proposed revenue share to the government is better.
SMC SAP in its proposal undertakes to pay ₱30 billion upfront cost and annual annuity payment of ₱2 billion to the government, and 82.16% government share of unregulated profits which comprises its operations, like parking services, merchant and airline leases, ramp and cargo operations, advertising, among others, for a total of ₱36 billion per annum remittance to the National Treasury.
Two other bidders which submitted financial bids were Manila International Airport Consortium, which is comprises the group of Aboitiz InfraCapital, Ayala’s AC Infrastructure Holdings Corp., Alliance Global-Infracorp, Filinvest and JG Summit Holdings (25.91 percent), and GMR Airports International B.V., Cavitex Holdings, Inc. and House of Investments, Inc. of GMR Airports Consortium (33.3 percent).
Asian Airport Consortium was disqualified to join the bidding process by the Pre-qualifications, Bids and Awards Committee (PBAC) because it failed to comply with the technical proposals for NAIA.
Asian Airport Consortium comprises Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders Inc. and PT Angkasa Pura II.
The winning bidder will have until March 6 to submit the post-award requirements and deliver ₱30 billion pesos to the government.
The DOTr expects to sign the concession agreement with SMC on March 15, with the turnover of the facility scheduled in September this year.
The option for a 10-year extension will begin to be evaluated on the seventh (7) year of the contract based on key performance indicators, such as asset quality, passenger experience, and infrastructure development, while award for extension will be made in the 8th year.
The NAIA Operations, Management and Maintenance contract involves capital investment of ₱122.3 billion for expansion of Terminals 2, and Terminal 3, apron redevelopment, terminal 1,2,3, and 4 interconnection facilities, and upgrades of aeronautical facilities, ILS and other equipment that will shorten and maximize aircraft separation, and increase air traffic during bad weather, compliant with the International Civil Aviation Organization (ICAO) and other internationally accepted standards.
Terminal 2 and Terminal 3 will be expanded to have capacity of 30 million and 25 million passengers per annum from the current 10 million and 15 million, respectively, optimizing and enhancing the capacity of the airport terminals to accommodate a total of 62 million passengers a year for all terminals on the 10th year, or 2034. NAIA Terminals currently handled 45.3 million in 2023. Current projections indicate it will reach 60 million on the fifth year of the concession agreement.
The concessionaire will be responsible for both landside and airside operations of the NAIA.
Meanwhile, DOTr Secretary Bautista disclosed that New Manila International Airport in Bulacan will begin operations in 2028, with a terminal capacity of 35 million passengers per annum.
It would be very crucial for SMC to link NAIA and Bulacan Airport for connecting passengers. I hope this is already in the pipeline of SMC, and will not only settle for an expressway linking the two airports. I do not think extending MRT-7 would be viable and as of the moment there are no proposals to extend it south of the Pasig River; it would only be a circle line traversing QC, Manila, Navotas and Bulacan. But it would be more logical and feasible to utilize the NSCR by building a spur line from Bocaue or Marilao to Bulacan Airport, and another from Nichols to NAIA T3. I wish SMC will consider setting up a railway company to operating a "through service" or "through running" train service utilizing NSCR tracks. This is being done in Tokyo right now: the private commuter rail Keikyu Line operates an airport express service linking HND and NRT airports "through running" with Toei Subway Asakusa Line and Keisei Electric Main Line.
ReplyDeleteIt' s already connected via NLEX-SLEX connector. NMIA expressway is being constructed via NLEX and R10 to coincide its opening in 2028
ReplyDeleteyes but we need an urgent alternative. skyway stage 3 is newly opened yet is now congested. basically you're paying a premium just to get stuck in traffic congestion. and this doesn't look pretty nor sounds "world class" for connecting passengers if they get stuck along skyway or nlex-slex connector between NAIA and Bulacan airports.
DeleteNMIA project also has a circular railway component traversing R10, NSCR and MRT7. Both NSCR and MRT7 are under construction now. They are being built.
Deletecan the bulacan airport and naia really co-exist? clark has also been recently expanded but under capacity, sangley is being developed as well. what are the target segments for these multiple Airports which are not too far from each other? will foreign carriers fly to all of them? are we seeing some white elephants in the making here?
ReplyDeleteNAIA cannot support passenger traffic beyond 60mppa. Its the maximum thru put. Had it not for covid that statistics could have been breached by now. That is the reason why DOTr was developing Sangley fast to transfer all turboprops and domestic cargo operations there. Next year we would be seeing that reality.
DeleteRegards.
Mike
thanks for the comment, but still doesn't address my concerns about the bulacan mega airport and naia being redeveloped and clark operating under capacity. How do you incentive foreign carriers to fly to Bulacan and Clark if Naia is being redeveloped?
DeleteNAIA redevelopment is for it to accommodate the maximum thru put of 60mppa. The allowable limit is 65mppa and no more. NAIA terminal capacity is breaching its limit at 45mppa. You need an expanded terminal or a new terminal to add 15 million more people comfortably. That can't be done immediately until about 3 years time. In the meantime, 20 or more airlines are awaiting approval for 30 paired slots which is not forthcoming until such time. And that was 2023 alone. So there is Clark to funnel the excess. That is the reason why DOTr is in Singapore basically to sell CRK. Not MNL.
Delete