NAIA Set for Private Management as Government Plans Turnover to San Miguel Consortium by September 2024

The Ninoy Aquino International Airport (NAIA), one of the busiest airports in the Philippines, is scheduled to be transferred to private management under a consortium led by San Miguel Corporation by September 14, 2024. This move is part of a broader strategy by the government to improve airport services and facilities through private sector involvement.

Details of the Turnover

Transportation Secretary Jaime Bautista confirmed ongoing preparations for the turnover following a landmark concession agreement signed in March. The consortium, NAIA Infra Corp., which includes notable partners such as San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp., has been in continuous talks with the government to meet all conditions and requirements necessary for a smooth transition.

Financial and Structural Commitments

Under the P170.6-billion concession agreement, the consortium has pledged significant capital investments totaling at least P122.3 billion over the 25-year concession period, which breaks down to about P4.89 billion annually. Additionally, San Miguel is required to make an upfront payment of P30 billion to the government, alongside annual payments of P2 billion throughout the contract duration.

Future Developments and Benefits

San Miguel Corp. President and CEO Ramon Ang has announced plans to construct a new passenger terminal designed to handle 35 million passengers per year and include a car park capable of accommodating 9,000 vehicles. This development is expected to significantly enhance the operational capacity and efficiency of NAIA.

Government’s Financial Projections

The government projects that the public-private partnership (PPP) will generate P900 billion in revenue, encompassing the upfront payment, annual contributions, and committed government revenue shares. This extensive financial influx underscores the substantial economic impact anticipated from this privatization effort.

Impact and Expectations

This transition marks a pivotal moment in Philippine aviation as NAIA moves towards privatization to leverage private expertise and investment for infrastructure development. The government and the managing consortium are committed to ensuring that the changeover will lead to enhanced airport services and facilities, aligning with international standards of efficiency, safety, and customer service.

The successful execution of this project is expected to set a precedent for future public-private partnerships within the country, potentially leading to more efficient and modernized public service infrastructures.