Finance Secretary Ralph G. Recto assured that the Ninoy Aquino International Airport (NAIA) will finally offer world-class service following the signing of a concession agreement for the Public-Private Partnership (PPP) project.

“Our people must receive full VIP airport treatment—no hassles, no long lines, and definitely no bed bugs and rats, just excellent service. After all, the Filipino people deserve nothing but the best,” Recto said on Monday, March 18.

“This project will ensure that only world-class service will be delivered to our people and international visitors, setting NAIA's departure from its notorious reputation as one of the world's worst airports to one of the best,” he added.

The finance chief also said that the swift process of the NAIA rehabilitation program, which only took 12 months, will serve as the blueprint for future PPP projects in the country.

The PPP deal is seen to generate around P900 billion in revenues for the national government during its entire 15-year concession period.

“This means that the government is assured a healthy income stream from the private sector operator amounting to 36 billion pesos annually to fund expanded social services in education, public health, and infrastructure,” the finance chief said.

The forecasted national government revenues from the said deal will include payments of such as P30 billion upfront payment and a fixed P2 billion annual payment.

Recto also called on the San Miguel Corp.-led consortium to maximize NAIA's potential so that the country can reap the full benefits of the tourism industry for economic growth.

The share of Tourism Direct Gross Value Added (TDGVA) to the country’s gross domestic product was estimated at 6.2 percent while the tourism sector employed 11.4 percent of the total workforce.

“The stakes are high. We cannot afford to falter in our efforts,” Recto stated.

“Rest assured, every project, every contract undergoes rigorous scrutiny by the Department of Finance to ensure the utmost benefit for the Filipino people,” he further said.

For PPP Center Executive Director Ma. Cynthia C. Hernandez, the NAIA PPP collaboration testifies to the Marcos administration’s commitment to strengthen the public and private sector alliances in infrastructure development.

“It is a significant milestone in the Philippine infrastructure landscape, highlighting the government’s commitment to its Build-Better-More program,” Hernandez said.

“We are confident that the streamlined process this project underwent will serve as a blueprint for future Philippine PPP projects,” she added.

The NAIA project was the first PPP contract that was awarded by the government since the PPP code, the legal framework for attracting foreign investments, took effect in late December 2023.

The SMC-SAP & Company Consortium was declared by the Department of Transportation (DOTr) and Manila International Airport Authority (MIAA) as the winning bidder after proposing a revenue share of 82.16 percent, higher compared to its competitors GMR consortium (33.3 percent) and the Manila International Airport Consortium (25.91 percent).

In addition to the revenues, payments from the said deal will also include a P30 billion upfront payment and a fixed P2 billion annual payment.

The project aims to increase airport capacity from 35 million passengers to 62 million passengers each year, and increase air traffic movements from 40 to 42 per hour to 48 per hour.

The concession agreement was signed between DOTr Secretary Jaime Bautista, MIAA General Manager Eric Jose Ines, and San Miguel Corporation President and Chief Executive Officer Ramon Ang.