Philippines, Germany sign Clark Airport MRO facility lease agreement
President Ferdinand R. Marcos Jr. and President Frank-Walter Steinmeier of the Federal Republic of Germany hold a bilateral meeting at the Malacañan Palace on June 16, 2026. (PCO)
The Philippines and Germany signed a lease agreement for the use of a maintenance, repair, and overhaul facility within the Clark International Airport.
It was signed during the meeting between President Marcos and German President Frank-Walter Steinmeier at Malacañan on Tuesday, June 16.
According to Malacañang, the lease agreement provides for the use and development of a 157,000-square-meter support, maintenance, repair, and overhaul facility within Clark International Airport.
Marcos and Steinmeier witnessed the exchange of the signed agreement during a joint press conference.
The agreement was signed by the Bases Conversion and Development Authority (BCDA), Luzon International Premier Airport Development Corporation, and Lufthansa Technik Philippines.
Before the presentation of the agreement, Marcos and Steinmeier held a bilateral meeting where they discussed various areas of cooperation, including peace and development, defense, maritime cooperation, economic cooperation, climate change, renewable energy, and labor.
In his statement during the joint press conference, Marcos stated that the Philippines' relations with Germany "are important not just because our portfolio of cooperation spans a wide array of sectors, but because these partnerships and projects have proven to be successful and beneficial to our national development efforts."
He thanked Steinmeier for Germany’s support for development cooperation programs and projects in the country, including on peace and development efforts in Mindanao.
Marcos noted that Germany remains a strong partner of the Philippines in trade and investment, being the Philippines’ biggest trading and investment partner in the European Union, with total bilateral trade at about $5.5 billion and net foreign direct investment of $10.26 million in 2025.
On defense cooperation, Marcos said Germany is an important defense partner of the Philippines, and has been participating as an observer in the Balikatan exercises for three years now since 2024.
Germany is also an important partner and like-minded country in the Philippines’ efforts to promote the rule of law and the rules-based international order, he added.
"I thanked Germany specifically for consistently and publicly expressing its support for Philippine efforts to uphold the rule of law in the South China Sea, including by calling on all parties to abide by the final and binding 2016 Arbitral Award," Marcos said.
"On maritime cooperation, I conveyed appreciation for the partnership in modernizing the maritime and aviation capabilities of the Philippine Coast Guard (PCG). This includes the provision by Germany of two Airbus H145 twin-engine helicopters in 2019 and unmanned aerial vehicles in 2024," he added.
Marcos went on to acknowledge Germany's support for the Philippines in trade, people-to-people exchanges, the labor market, technical and vocational education and training (TVET), and the Association of Southeast Asian Nations (ASEAN).
The President also underscored that "Germany’s strength in renewable energy technology and the Philippines’ abundance of natural resources and friendly investment environment make the two countries natural partners in this sector."