September 18, 2024 | 12:00am
MANILA, Philippines — The Bureau of the Treasury received P30 billion in upfront payment as the new operator of the Ninoy Aquino International Airport (NAIA) formally takes over the country’s main gateway.
In a statement, the Department of Finance said the Manila International Airport Authority yesterday remitted the P30 billion from San Miguel Corp. through the New NAIA Infrastructure Corp. (NNIC).
This followed the official turnover of NAIA’s operations and maintenance to NNIC over the weekend, jumpstarting the 15-year transformation of what is seen as one of the worst airports in the region.
Finance Secretary Ralph Recto said the government is hitting two birds with one stone on the NAIA project, the largest public-private partnership deal under the Marcos administration.
“This will not only transform NAIA into a world-class airport, but also guarantees the government a healthy income stream from the private sector operator,” Recto said.
As the project takes off, the government is expected to generate around P900 billion from the 15-year concession period, extendable by another 10 years.
Apart from the upfront payment, the government will receive a fixed P2 billion annual payment and an 82-percent revenue share, excluding passenger service charges.
“This will be equivalent to a revenue source of more or less P36 billion annually to fund more projects in education, public health and infrastructure,” Recto said.
The NAIA project targets to address the longstanding problems of undercapacity, congestion and underinvestment.
It will increase airport capacity from 35 million passengers annually to 62 million and expand air traffic movements per hour from 40 to 48.
The project improves service by applying internationally benchmarked minimum performance standards and specifications and utilizes private sector expertise for modernization and capacity expansion.
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