PHILIPPINES. A consortium led by Philippine conglomerate San Miguel Corporation and South Korea’s Incheon International Airport Corp (IIAC) yesterday signed the concession agreement for the modernisation of Manila Ninoy Aquino International Airport (NAIA).
As reported, the group won the US$3.05 billion contract after offering the largest revenue share of 82.2% to the government.
Now established as the New NAIA Infra Corp (NNIC), the consortium also includes Filipino firms RLW Aviation Development Inc and RMM Asian Logistics Inc.
Led by Philippine President Ferdinand Marcos Jr and Department of Transportation Secretary Jaime Bautista, the signing ceremony took place at the Malacañang Palace in Manila. It was attended by the group’s top executives including IIAC Chief Executive Lee Hag-jae; San Miguel Chairman Ramon Ang; RLW CEO Robert Wong; and RMM CEO Raymond Moreno.
In a statement, IIAC Chief Executive Lee Hag-jae said: “We plan to dramatically improve the operation and airport service level of Manila Airport, the gateway airport to the Philippines, by utilising the world-class construction and operation know-how accumulated by Incheon Airport.
“Through successful execution of the project, we will continue to expand Incheon Airport’s overseas business base around the world.”
Incheon International Airport Corp holds a 10% stake in NNIC, while San Miguel has the largest share with 33% – RLW and RMM own 30% and 27%, respectively.
In a statement, the Korean company said that it will be responsible for the overall operation of Manila Airport during the management period. It will also work separately to secure additional operational consulting contracts.
IIAC plans to form a separate task force comprised of experts in each field including terminal operations, security and facility maintenance for the immediate upgrade of the airport, scheduled to start in September this year.
In addition, IIAC will deploy four construction experts to the site to assist Manila’s airport authorities.
San Miguel Chairman Ramon Ang added: “Today, we reached a milestone with the signing of the concession agreement for the NAIA rehabilitation, marking one of the largest and most impactful infrastructure projects in Philippine history. This project is expected to generate over P900 billion (US$16 billion) for the government and the Filipino people.”
He added: “For us in the consortium, this initiative goes beyond mere rehabilitation, it is about realising our collective vision for an international gateway that every Filipino can take pride in. We understand the significance of the responsibility entrusted to us and are fully committed to meeting this challenge.”
As reported, the landmark project involves a 15-year concession agreement with the possibility of a ten-year extension.
The rehabilitation programme includes an upgrade of the passenger terminals and airside facilities, the development of commercial assets and utility systems, and building inter-terminal transport facilities.
In an interview with state-owned media, Ang said that the airport shall see improvements within six months from the start of the takeover in September.
He added that they are planning to add a passenger terminal with 50 boarding gates to accommodate 35 million passengers and decongest traffic in the existing terminals. The building is expected to be completed in three years.
The group will also resolve the problems in the airport’s power system and air conditioning, and enhance facilities including escalators, elevators and walkways across terminals. ✈
