Business Bayani PH

The Philippines unveiled a game-changing infrastructure project on Monday with the signing of a ₱170.6 billion Public-Private Partnership (PPP) deal for the Ninoy Aquino International Airport (NAIA) modernization program. President Ferdinand Marcos Jr. witnessed the historic agreement, signifying the government’s commitment to transforming the country’s main gateway into a world-class facility.

A much-needed upgrade

NAIA currently serves as the Philippines’ busiest airport, handling millions of passengers annually. However, the aging infrastructure has struggled to keep pace with growing demand, leading to congestion and inefficiencies. The modernization program aims to address these issues by significantly upgrading the airport’s capacity and facilities.

The project will be undertaken by a consortium led by San Miguel Holdings Corp., alongside RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp. – a company with proven expertise in managing major airports. The consortium secured the contract by offering the government a hefty revenue share of 82.16%. The partnership is expected to last for 25 years.

Benefits for passengers and the economy

The NAIA revamp promises a more comfortable and efficient travel experience for passengers. The project will increase the airport’s capacity from 35 million passengers annually to 62 million, significantly reducing congestion. Passengers can expect shorter waiting times and a smoother travel experience.

Beyond passenger comfort, the project is expected to deliver a significant economic boost. Speaker Martin Romualdez lauded the deal, highlighting its potential to “foster sustainable growth and innovation in our transportation infrastructure.” The project is expected to create jobs, stimulate tourism, and improve the Philippines’ overall connectivity with global markets.

Focus on passenger experience

President Marcos acknowledged the urgent need for improvement at NAIA, calling the project a “catch-up plan” after decades of delays. He emphasized the negative impact of the airport’s current state on tourism and the overall economy.

While the project will generate significant revenue for the government, Marcos stressed that the primary goal is to enhance passenger experience. The project aims to double NAIA’s annual capacity to 62 million passengers and increase air traffic movements. Additionally, it promises a cleaner, more comfortable environment for travelers.

The government completed the evaluation process for the PPP project in a record-breaking seven weeks. President Marcos assured the public that speed did not compromise thoroughness, highlighting the project’s adherence to international best practices.

Positive reactions and next steps

Senator Grace Poe welcomed the project, describing it as “a step in the right direction.” She emphasized the deal’s ability to showcase the Philippines’ commitment to infrastructure development, potentially attracting further foreign investment.

The Manila International Airport Authority (MIAA), which currently manages NAIA, has openly acknowledged the need for improvement. The agency expects to officially hand over operations and maintenance to the winning consortium by September 2024.

The signing of the NAIA modernization program marks a significant milestone for the Philippines. The ₱170.6 billion investment is a testament to the government’s commitment to improving the country’s infrastructure and propelling the aviation sector forward. With a world-class NAIA on the horizon, Filipinos and international travelers alike can expect a smoother and more efficient travel experience in the years to come.Ⓒ