MANILA, Philippines — The Ninoy Aquino International Airport (NAIA) is now under the management of the San Miguel-led New NAIA Infra Corp. (NNIC), marking the start of a major modernization effort that has been in the works for 30 years.
Top officials from the Department of Transportation (DOTr) and Manila International Airport Authority (MIAA), San Miguel Corp. (SMC) and NNIC attended the handover ceremony at Terminal 3 on Saturday, September 14.
NNIC Chairman Ramon Ang hailed the concession agreement, which was finalized on March 18, as a critical investment in the nation’s future.
"A world-class airport will bring more jobs, attract tourists, and strengthen the country’s economy," Ang said in a statement released Saturday on DOTr's Facebook page.
As the government officially entrusted NAIA’s operations to its new private operator, NNIC General Manager Lito Alvarez said it is their duty "to carry it forward to the finish line."
Transportation Undersecretary Roberto Cecilio Lim welcomed the NNIC-led project, saying that it will be "a precursor to a world-class and modernized NAIA."
"Today, we celebrate the competitive spirit of the winning consortium, which brings financial muscle, management expertise, and technical operating strength and experience of the Incheon Airport," Lim said.
The San Miguel-led consortium, previously known as SMC SAP & Co. Consortium, will invest approximately P144 billion in the 15-year concession, with an option to extend for an additional decade.
While NNIC will manage NAIA, the DOTr clarified the government will retain ownership and take back operations at the end of the concession period.
"Once the airport’s modernization has been completed, its capacity will increase from 35 million passengers to 62 million passengers and an uptick in air traffic movement from 40 movements per hour to 48, and improve service quality and compliance with International Civil Aviation Organization (ICAO) standards," the DOTr said.
The project is expected generate P900 billion in revenue for the government and create at least 58,000 jobs for Filipinos.
"Other improvements expected at the airport are aircraft parking bays, increase in vehicular parking slots, installation of world-class systems and technology, more food and beverage (F&B) and retail options, more convenient land transport connectivity, among others," the DOTr said.
The takeover comes as NAIA has faced various issues and was ranked as the “fourth worst airport in Asia” earlier this year.