The San Miguel-led consortium, officially known as the SMC SAP & Company Consortium, has successfully clinched the 15-year contract for the extensive rehabilitation of the Ninoy Aquino International Airport (NAIA). The Department of Transportation (DoTr) made the announcement earlier today, marking a pivotal moment in the country’s pursuit of modernized aviation infrastructure.
Comprising San Miguel Holdings Corp., RLW Aviation Development Inc., RMM Asian Logistics Inc., and the esteemed Incheon International Airport Corp. from South Korea, the consortium emerged victorious in a highly competitive bidding process. The project, valued at PHP170.6 billion, encompasses the rehabilitation of passenger terminals, airside facilities, commercial assets, utility systems, and various surface access facilities for intermodal and inter-terminal transfer.
Transportation Secretary Jaime Bautista lauded the SMC SAP & Co. Consortium for their winning proposal, emphasizing their significant revenue share commitment of 82.16%, more than double that of their competitors. The other bidders included India’s GMR Airports Consortium and the Manila International Airport Consortium.
The entire project development process, conducted as a Public-Private Partnership (PPP), transpired within an efficient 12-month timeline. The journey began with the government’s signing of a transaction advisory services agreement with the Asian Development Bank (ADB) on 02 February 2023, followed by the National Economic and Development Authority’s (NEDA) approval of feasibility studies.
Bautista disclosed that the Notice of Award (NOA) has been issued to the SMC SAP & Co. Consortium, with the contract signing scheduled for the following month. He highlighted the meticulous evaluation process carried out by the Bids and Awards Committee (BPAC) of DOTr, culminating in the MIAA Board’s approval on 16 February 2024.
During a media briefing today, Bautista emphasized the significance of this privatization project, tracing its roots back 30 years to the administration of former President Fidel V. Ramos. The SMC SAP & Co. Consortium’s proposal aligned seamlessly with the PPP initiative of the national government, aiming to enhance NAIA’s capabilities and overall passenger experience.
The concession period for NAIA spans 15 years, extendable for an additional 10 years. After the eighth year, the concessionaire’s performance will be evaluated to determine the potential extension of their concession period.
The SMC SAP & Co. Consortium, comprised of San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp., showcased their experience and capabilities in airport operation, with a specific focus on Incheon Airport in South Korea.
This monumental PPP venture is anticipated to generate a substantial PHP900 billion or PHP36 billion annually for the national government over the 25-year period. The breakdown includes a PHP30 billion upfront payment, a PHP2 billion annual payment, and a remarkable 82% share for the government.
Undersecretary for Planning and Project Development, Timothy Batan, outlined the capital expenditure (CAPEX) estimate for the project at PHP122.3 billion, covering the entire 25-year concession. The agency is set to mobilize around PHP88 billion in capital investments within the first six years.
The SMC-led consortium’s bid, which excludes passenger service charges but includes aeronautical charges and commercial revenues from duty-free, ads, parking, and kiosks, secured its position as the highest bidder among the qualified groups, paving the way for a new era in NAIA’s development.