SMC-led group to pay gov’t P30B upfront for Naia deal
This photo, taken on March 7, 2014, shows the Ninoy Aquino International Airport (NAIA) Terminal 1. (File photo by GRIG C. MONTEGRANDE / Philippine Daily Inquirer)
SMC SAP & Co. Consortium will pay the government P30 billion upfront when signing the P170.6 billion Ninoy Aquino International Airport (Naia) rehabilitation contract at Malacañang Palace on Monday, March 18.
This payment is a portion of the concession agreement aimed at enhancing the operations of the Philippines’ primary international airport and boosting government revenues.
The Department of Transportation (DOTr) estimated this public-private partnership project with the San Miguel Corp. (SMC)-led group would generate P900 billion for the government, or about P36 billion annually, should the concession period run for 25 years.
The consortium is given 15 years to realize the big-ticket infrastructure project but the term can be extended by 10 years depending on the results of a performance evaluation during the eighth year.
Winning consortium
Along with San Miguel, local companies RLW Aviation Development Inc. and RMM Asian Logistics Inc. and Korean airport operator Incheon International Airport Corp. are part of the winning consortium.
The contract signing comes about a month after the DOTr proclaimed the San Miguel-led group’s bid the winner. It put forward the highest proposal for revenue share with the government, besting the bids of GMR Airports Consortium and Manila International Airport Consortium.
Following the inking of the partnership, the DOTr previously said the private concessionaire would conduct financial closing for three to six months before kicking off the project.
The consortium is tasked with rehabilitating passenger terminals and airside facilities such as runway, aircraft parking area and airfield lighting. It would also build facilities enabling intermodal transfers at the terminals.
The DOTr earlier said they were expecting the group to already deliver some improvements in the airport as early as next year. These include making waiting time at check-in and immigration counters shorter and more predictable, more available parking slots and additional seats at the pre-departure areas.
Rehabilitating Naia will increase its capacity up to around 60 million passengers per year, which is seen as a must given that it is already handling volume beyond its capacity. INQ
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