Last Holy Week, the Ninoy Aquino International Airport (NAIA), was expectedly crowded as residents and tourists traveled to and from the nation’s major islands. In mid-March, President Marcos witnessed the signing of a concession agreement involving a Public Private Partnership (PPP) between the government and a consortium led by San Miguel Corporation to rehabilitate, expand and modernize the NAIA at an estimated cost of ₱170 billion.
“The gate that should be the red carpet to our country has become a dirty rug that unfairly defines a visitor’s first impression,” the President said, emphasizing the urgency for completing its rehabilitation and capacity expansion.
Recall that on Jan. 1, 2023, a major power outage crippled the NAIA’s air traffic management system; it affected around 65,000 passengers from almost 300 international and domestic flights. A relatively minor, two-hour power outage was experienced at the NAIA Terminal 2 last Wednesday, March 27, but the airport management said there were no flight delays or cancellations.
Within a year after its last major expansion in 2014, the NAIA serviced some 36.7 million passengers annually — exceeding its current capacity of 35 million — thus prompting the Department of Transportation (DOTr) to embark upon a significant capacity expansion to 62 million that enables an increase from 40 to 48 in air traffic movements per hour, in accordance with international benchmarks.
The SMC Consortium is required to “rehabilitate, operate, optimize, and maintain the NAIA, which includes improvements to its runways, four terminals and other facilities.” The consortium submitted the highest bid amount and signified that it is sharing 82.16 percent of future gross revenues with the government, excluding passenger service charges.
According to the DOTr, the consortium will assume control of airport operations within the next six months — and that “the public can expect service improvements as early as the first year of operations.”
The SMC Consortium committed to make an upfront payment of ₱30 billion to the government “as a premium,” and an additional ₱2 billion in annuity payments. According to the Department of Finance, this PPP agreement will generate around ₱900 billion in government revenues for its entire concession period of 15 years with a 10-year extension provision. These amounts represent a quantum leap compared to the total dividends of ₱22.05 billion earned by the government from 2012 to 2023.
But President Marcos emphasized that “this undertaking is not just about revenues” but an “investment in the future” aimed at restoring the tarnished image and reputation of the country from the dismal condition of its primary international airport.
A new and modernized NAIA will facilitate the influx of tens of thousands of tourists and visitors that would be encouraged and attracted to experience the Filipinos’ unmatched reputation as being, arguably, the most friendly and hospitable people in Southeast Asia. Hopefully, the projected timetable will be met with no undue delays. The government’s manifestation of strong political will in modernizing the NAIA deserves the people’s unqualified support.