Gov't signs landmark deal for NAIA rehab, modernization

The modernization of the country’s main gateway is one step closer to actuality as the Department of Transportation (DOTr) and SMC SAP & Co. Consortium on Monday signed the landmark concession agreement for the Ninoy Aquino International Airport (NAIA) Public-Private Partnership (PPP) Project.

President Ferdinand "Bongbong" Marcos Jr. witnessed the signing and described the NAIA privatization project as "an investment in our future." 

"This undertaking is not just about revenues that will be remitted to treasury alone, but resources invested in the airport and in many ways, it is an investment in our future,'' Marcos said in a speech.

Marcos noted that the postponed improvement of the airport has caused delayed and reduced number of flights, which he said also affects the Philippine economy. 

He also said that the bottom line of the airport's resurgence was not what it will bring to the coffers of the government but the comfort it will bring.

Marcos said the restoration of the airport should go beyond its physical appearance. 

''It requires major overhaul such as the rehabilitation of the passenger terminals, the airsight facilities, the development of commercial assets and utility systems, the provision of intermodal and inter terminal transport facilities,'' Marcos said. 

He said the project is seen to ramp up the number of yearly passengers from 35 million to 62 million. The President added that the hourly air traffic movement would be increased to 48 movements per hour. 

Earlier, Transportation Secretary Jaime Bautista announced that the SMC-SAP & Company Consortium was the winning bidder of the P170.6-billion NAIA Public-Private Partnership project after it offered the highest share of its future revenues from operating the airport to the government.

The winning group is made up of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp. The SMC-SAP & Company Consortium offered the highest percentage share of its future gross revenues to the government at 82.16%.

''I urge the San Miguel Corporation & Company Consortium to fulfill its commitment to this PPP project,"  Marcos said.

In a separate statement on Monday, Bautista said the NAIA PPP Project will open the floodgates of opportunities for the country—from investments, business, tourism and employment.
 
"We welcome this development for the NAIA PPP Project as this will not only generate revenue for the government but it will also create opportunities for Filipinos. With a modernized NAIA, we are elevating the airport's facilities and services to international standards," the DOTr secretary said.
 
With the signing of the concession agreement, the operations and maintenance of the airport will be handed over to the Concessionaire on or before September 2024.  —KBK, GMA Integrated News