16-2-2024 (MANILA) The long-awaited transformation of the Philippines’ main international gateway is finally on the horizon as the government awarded a $3 billion contract to modernize the Ninoy Aquino International Airport (NAIA) in Manila. The airport, known for its subpar performance and ranking among the world’s worst, will undergo a much-needed facelift.
On Friday, the transportation ministry selected a consortium led by San Miguel Corp, a conglomerate, as the preferred bidder for the project. San Miguel’s group, which includes South Korea’s Incheon International Airport Corp, outcompeted India’s GMR Airports Consortium and the Manila International Airport Consortium by offering the government the largest share in airport revenues at 82%.
Expressing gratitude for the selection, San Miguel President Ramon Ang said, “Thanks to DOTR (Department of Transportation) for choosing the best deal for our country,” ahead of the official announcement.
Previous attempts to upgrade NAIA have faced numerous obstacles, including disputes between airport authorities and contractors, resulting in failed or abandoned projects. The airport has been plagued by flight backlogs and, more recently, power outages.
The modernization of NAIA is part of the government’s broader initiative to revamp and modernize the country’s infrastructure. The government aims to attract private capital to fund these ambitious projects, which encompass railways, ports, and bridges.
Transportation Secretary Jaime Bautista stated at a media briefing, “After thirty years in the making, we will finally be able to privatize the operations and maintenance of the Manila international airport.” He further added that the 15-year concession agreement, which has the potential for a 10-year extension, will be signed with San Miguel within the next 30 days.
According to the agreement, the winning bidder is obliged to nearly double NAIA’s capacity from the current 32 million passengers per year to at least 60 million. Additionally, the air traffic movements should increase from 30-40 per hour to 48.
In 2019, NAIA handled a record-breaking 48 million passengers on its 600-hectare (6 sq km) premises. However, the airport faced a major setback last year when a massive power outage disrupted air traffic control, leading to the cancellation of 300 flights.
To alleviate the pressure on NAIA and accommodate the growing demand, new airports are being constructed in provinces surrounding Manila. San Miguel, in collaboration with construction firms involved in building Singapore’s Changi airport, is also spearheading the construction of airports in Cavite and Bulacan.
