NAIA REHABILITATION. President Ferdinand R. Marcos Jr. (center, back row), House Speaker Martin G. Romualdez (left), and Executive Secretary Lucas Bersamin (right) witness the signing of the concession agreement between the government and SMC SAP & Co. Consortium for the rehabilitation and modernization of the Ninoy Aquino International Airport in a ceremony in Malacañang on Monday (March 18, 2024). Bautista said the PPP project would "open the floodgates" of opportunities and signal to the international community of the viability of investing in the country's infrastructure projects. (Photo courtesy of Speaker Romualdez’s office)
MANILA – The PHP170.6-billion Public-Private Partnership (PPP) agreement for the rehabilitation of the Ninoy Aquino International Airport (NAIA) is expected to herald economic growth through better collaborations with both local and foreign investors, Transportation Secretary Jaime Bautista said Monday.
At the signing of the concession deal between the Department of Transportation (DOTr) and the New NAIA Infra Corp. (NNIC) in Malacañang, Bautista said the PPP project would “open floodgates” of opportunities from investments, business, tourism, and employment.
“We welcome this development for the NAIA PPP Project as this will not only generate revenue for the government but it will also create opportunities for Filipinos. With a modernized NAIA, we are elevating the airport’s facilities and services to international standards,” he said.
The agreement, Bautista said, would send signal to the international business community about the viability of government infrastructure projects.
“This radical transformation comes at no small price Substantial investments in infrastructure and technology will necessitate collaborations with local and foreign partners,” he added.
San Miguel Corporation president and chief executive officer Ramon Ang, for his part, said the NNIC would not only rehabilitate but also improve the airport’s functionality and “establish a new standard in serving excellence.”
“Together with our partner, Incheon, we have assembled a team of experts, focused on implementing immediate improvement, and help us achieve our long-term goal for NAIA,” Ang said.
President Ferdinand R. Marcos who witnessed the signing described the pact as an “investment in our future.”
“This undertaking is not just about revenues that will be remitted to treasury alone, but resources invested in the airport,” Marcos said.
'Pivotal role"
Meanwhile, the Department of Tourism (DOT) expressed its support for the signed agreement that plays a "pivotal role” in the government's commitment to elevate the standards of transportation and tourism infrastructure in the Philippines.
"With the redevelopment going beyond the physical design and structure of the Philippines' primary gateway, the NAIA PPP Project symbolizes the Marcos Administration’s dedication to improving infrastructure and enhancing the overall passenger experience and service quality at the country's primary gateway which our National Tourism Development Plan 2023-2028 concretely envisions," the department said in a statement.
The DOT emphasized that the privatization of the NAIA was the first of the many initiatives that the national government and the private sector should pursue to improve the country’s gateways including secondary airports and seaports.
"The DOT has fostered a strong alliance with agencies such as the DOTr and private sector partners since the early days of the Marcos administration, fully realizing that tourism, an industry that contributed a remarkable 6.2 percent to the country's Gross Domestic Product and employed over five million in 2022, can only continue to thrive and take its rightful standing globally through a multi-dimensional approach and by improving infrastructure, foremost of which is our gateways, which serve as the first and last impression of tourists," it said.
The agreement, signed by Bautista, Ang and Manila International Airport Authority (MIAA) General Manager Eric Ines, covers 15 years with an option for a 10-year extension.
The NNIC is composed of San Miguel Holdings Corp., RMM Asian Logistics, Inc., RLW Aviation Development, Inc., and Incheon International Airport Corp. (With a report from Ma. Teresa Montemayor/ PNA)
