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.
