To address the government's growing debt, Finance Secretary Ralph G. Recto suggested the possibility of selling the land currently housing the Ninoy Aquino International Airport (NAIA) in Parañaque City.
Recto estimated that leveraging the 600-hectare NAIA property, equivalent to six million square meters, could generate around P6 trillion in privatization proceeds for the government.
“This is just an example. The airport - how big is the airport? NAIA - that’s 600 hectares. At a million a square, that’s P6 trillion. That could wipe out how many percent of your debt. Think about it,” Recto told reporters.
By pricing each square meter at P1 million, Recto believes this strategy could significantly reduce the national debt, or by almost 40 percent.
Recto, however, admitted that the current impracticality of this sale plan due to the lack of a viable alternative airport to NAIA.
However, the finance chief expects a different scenario in the future with the upcoming operation of the New Manila International Airport in Bulacan owned by the San Miguel Corp. (SMC)
Ramon Ang-led conglomerate has also recently clinched the contract to operate NAIA under a 15-year privatization agreement.
Recto said that once SMC's license to operate NAIA expires after 15 years, the group’s Bulacan international airport will be fully operational.
“For 15 years, their Bulacan airport will also be completed. So, later on, will there be a need for that [NAIA]?” Recto asked.
Should NAIA be privatized, the airport will cease operations, and the new owner of the 600-hectare land could develop it into a new business district, potentially twice the size of the 240-hectare Bonifacio Global City (BGC).
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Recto, however, clarified that this is not the plan of the Marcos administration but emphasized the importance of foresight.
“I’m not saying that we will do that. What I'm saying is that we should be thinking about things like this,” the finance chief said.