The Bases Conversion and Development Authority (BCDA) said that it is in talks with the Manila International Airport Authority (MIAA) concerning possible renewal or acquisition of the agency's leased land at the Ninoy Aquino International Airport (NAIA) or buy it for P50 billion.
BCDA President and Chief Executive Officer (CEO) Engr. Joshua M. Bingcang told reporters on Jan. 16 that they have set up a meeting with MIAA officials on Jan. 17 to discuss the property, currently the site of NAIA Terminal 3. The 25-year lease arrangement took effect beginning August 1998, and expired last year.
BCDA leased the NAIA T3 to MIAA with an annual rental of one percent of the appraised value at P33,000 per square meter in area, comprising 600,503 square meters. It has 10 percent escalation every five years up to the end of the 25th year.
BCDA would like to renegotiate the annual rental of the property to P600 million a year from the old lease agreement of P200 million. MIAA also has an option to acquire the property for P50 billion.
Bingcang clarfiied that MIAA has no debt, and their payments are up-to-date, however he noted that the value of the property has significantly risen since the contract terms were made.
"If we'll sell it at a zonal value, it's P50 billion. If its at market value, then all the more," he said.
The BCDA is giving MIAA the option to either purchase the land now or renegotiate a long-term lease, Bingcang explained.
He added that they've talked with the aviation agency before for them to buy the land since they can't have other uses for it.
If MIAA chooses a lease renewal, Bingcang noted that they will increase the revenue, noting that "the price in 1997 is different in 2024."