A consortium led by San Miguel Corp. (SMC) and South Korea’s Incheon International Airport Corp. (IIAC) offered the highest bid among three qualified groups for the rehabilitation, operation and maintenance of the Ninoy Aquino International Airport (NAIA), according to the Department of Transportation (DOTr).
During the opening and preliminary evaluation of the financial proposals for the P170.6 billion NAIA Public-Private Partnership (PPP) project on Thursday, Feb. 8, the SMC-SAP and Company Consortium offered to give the national government 82.16 percent of airport revenues under its bid to operate and modernize the country's premier international airport.
GMR Airports Consortium followed with 33.30 percent offer, and Manila International Airport Consortium (MIAC) with 25.91 percent. The specific amounts of the three bids were not disclosed.
SMC SAP Company Consortium is formed by the San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc. and Incheon International Airport Corp.
MIAC includes Aboitiz InfraCapital, Ayala’s AC Infrastructure Holdings Corp., Alliance Global-Infracorp, Filinvest, and JG Summit Holdings.
GMR Airports International B.V., Cavitex Holdings, Inc. and House of Investments, Inc make up the GMR Airports Consortium.
Upon review of their proposals, the DOTr’s Bids and Awards Committee (BPAC) found that all of the bidders were compliant with the requirements, meaning they had complete papers, namely their financial plan, financial model, and list of other necessary documentation.
Prior to the financial review, the DOTr underwent an evaluation of the technical proposals of the then four bidding groups who met the initial bidding deadline last December 2023.
The Asian Airport Consortium, comprising the Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders, Inc. and PT Angkasa Pura II, was not included in the financial review due to noncompliance. The details of the noncompliance were not disclosed.
What's next?
The review board will proceed to conduct a detailed evaluation of the financial proposals, with the expected announcement of the winning bidder by next week, Feb. 14 or 15.
DOTr Undersecretary for Planning and Project Development and BPAC Chairperson Timothy John Batan noted that there are disputes submitted by certain bidders vis-a-vis other bidders, and there is ongoing resolution by the BPAC, pursuant to the dispute resolution mechanism.
The disputes will be resolved before Feb. 14, with all concerned bidders provided with the resolution.
SMC ready to modernize NAIA
As the highest bidder, SMC expressed its eagerness to spearhead the modernization of the Manila airport.
“Our aim is to elevate NAIA to world-class standard, ensuring an exceptional experience for all travelers with first-rate services and facilities. Our commitment is to ensure this project brings significant value and advantages to our nation, our government, and our kababayans,” said SMC President and CEO Ramon Ang in a statement.
Ang also commended the DOTr for their “transparent and equitable bidding process.”
SMC has also been involved in the ongoing development of the New Manila International Airport (NMIA) project in Bulacan.
“Our vision is to create an integrated airport network that not only improves the travel experience but also supports sustainable economic growth and elevates the Philippines as a prime hub for tourism, business, and investment in the region,” Ang said.