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Manila Bulletin devider Business devider DOTr: NAIA to improve with SMC takeover in September

DOTr: NAIA to improve with SMC takeover in September

Published Aug 18, 2024 09:18 pm

The Department of Transportation (DOTr) said that travelers can look forward to an improved experience at Ninoy Aquino International Airport (NAIA) as its operation and maintenance (O&M) is set to be transferred to the private sector next month.

In a statement, DOTr Secretary Jaime J. Bautista said that a comprehensive overhaul of facilities at NAIA Terminals 1, 2, and 3 will take place once the consortium led by San Miguel Corp. (SMC) takes over the airport’s O&M responsibilities. 

Earlier, San Miguel President and Chief Executive Officer Ramon S. Ang said that they will assume control of NAIA’s operations on Sept. 18, 2024, marking the beginning of the P170-billion modernization project aimed at addressing the airport's congestion issues.

“Expect that there will be many changes, many improvements of the facilities and terminals—all the terminals—particularly Terminals 1, 2 and 3,” Bautista said in a statement.

The proposed rehabilitation plan aims to enhance its capacity and facilities significantly. With projections to increase annual passenger throughput from 35 million to 62 million and boost runway capacity from 40 to 48 movements per hour.

The San Miguel-led consortium also plans to invest P88 billion within the first six years— a rise from the government’s previous average annual investment of just P2 billion. 

The funding will be directed toward modernizing NAIA's infrastructure to meet International Civil Aviation Organization (ICAO) standards. A key aspect of the project is not only to improve capacity and safety but also to streamline the passenger experience throughout the airport.

The government, meanwhile, expects that the project will generate approximately P900 billion in revenue over a 25-year concession period, which includes a P30 billion upfront payment, annual payments of P2 billion, and an 82 percent share of future revenues generated by NAIA.

The P170.6 billion contract signed in March grants the consortium the rights to operate, maintain, and upgrade NAIA for an initial 15 years, with the possibility of a 10-year extension. 

San Miguel is also constructing the P740 billion New Manila International Airport in Bulacan, and progress at the site is moving ahead steadily.

Related Tags

San Miguel Ninoy Aquino International Airport NAIA REHABILITATION Department of Transportation (DOTr)
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