In a landscape-defining moment for the aviation sector, San Miguel Corporation wins the 15-year contract bid to manage NAIA. The responsibility was labeled as “upgrading one of the worst airports in the world.” This was announced by Transport Secretary Jaime Bautista on Friday.
The prestigious project was won over by the SMC SAP & Co. Consortium by offering a revenue-sharing proposal with a whopping 82.16% share extended to the government. With this, SMC is to make an upfront payment of P30 billion to the government, along with annual payments of P2 billion throughout the concession period. Other competitors were the GMR Consortium and the Manila International Airport Consortium, which were eventually bypassed by SMC’s bid.
The efficiency of a Public-Private Partnership is definitely a note highlighted in this project. Transportation Undersecretary Timothy John Batan mentioned how the entire project development took shape in just one year, from the transaction advisory agreement with the Asian Development bank to the issuance of the notice of award.
What entails this upgrade is the reutilization of passenger terminals and vital airside facilities such as runways, airfield lighting, and aircraft parking areas. Apart from that, it also aims to enhance the overall travel experience by facilitating seamless intermodal transfers within the terminal. Improvements like increased parking availability, reliable airport facilities, and shorter wait times can be expected by passengers from this project. All of this, led by SMC, is initially to transpire on a 15-year concession period, and if necessary, will be extended by 10 years.
The project has received optimism and support from government officials like Senator Grace Poe, who acknowledged the transformative potential it can bestow to NAIA. SMC-SAP & Company likewise declared its commitment, guaranteeing utmost collaboration and communication with the government and stakeholders to upraise the national airport to international standards.
