The Bases Conversion and Development Authority (BCDA) has signed an agreement granting the Manila International Airport Authority (MIAA) a three-year option period to either purchase or continue leasing the 61-hectare Ninoy Aquino International Airport (NAIA) Terminal 3 property.
The new memorandum of agreement (MOA) was inked following the expiration of MIAA’s 25-year lease on the property in 2023.
Under the revised terms, BCDA said it has secured an increased annual lease payment of ₱489 million, a notable increase from the previous ₱180 million.
The MOA grants MIAA the option to either purchase the property for ₱48.89 billion, or continue leasing it from the state-owned corporation.
“This agreement is a win-win for the government, as it enables BCDA to contribute more to the state coffers, while helping MIAA ensure uninterrupted air traffic flow through this critical gateway,” said BCDA President and Chief Executive Officer (CEO) Joshua Bingcang in a statement.
“This serves as a vital public service contribution that will ultimately lead to the development of NAIA,” he added.
If the MIAA chooses to exercise its option to purchase the property, it will be required to put up a downpayment of ₱10 billion, less the total cumulative annual payments already remitted.
BCDA has structured a 15-year payment plan, comprising equal semi-annual installments, which will approximately cost ₱3.74 billion annually.
The outstanding balance will have an annual interest rate of five percent, which reflects a reasonable return on investment for the government.
MIAA General Manager Eric Jose Castro Ines said this lease-to-own agreement is a crucial step towards securing a long-term development for NAIA Terminal 3.
“By transitioning from a leaseholder to a rightful owner, MIAA gains full control of the land, allowing us to plan, expand, and modernize the terminal without external limitations,” Ines said.
According to the BCDA, the MIAA’s potential acquisition of the property would allow for substantial investments in NAIA’s development, modernization, and expansion.
This would help accommodate the growing demands of both domestic and international air travel.
In 2024, the passenger volume in NAIA notched a record-high 50.1 million.
This is expected to grow even further this year following new investments by the New NAIA Infra Corporation (NNIC(, a San Miguel Corp. (SMC)-led consortium, which took over operations and maintenance of the country’s main gateway in September of last year.
Once the airport operator, MIAA is now transitioning into a regulatory authority.