BCDA MIAA sign lease, sale agreement for NAIA T3 property
Under a memorandum of agreement, Manila International Airport Authority will pay Bases Conversion and Development Authority a higher annual lease of P489 million from the prior P180 million for the Ninoy Aquino International Airport Terminal 3 property. Photo from BCDA.

The Bases Conversion and Development Authority (BCDA) and Manila International Airport Authority (MIAA) have signed a lease and sale agreement for the 61-hectare Ninoy Aquino International Airport (NAIA) Terminal 3 property.

Under a memorandum of agreement, NAIA regulator MIAA will pay BCDA a higher annual lease of P489 million from the prior P180 million.

The MOA also grants MIAA a three-year option period to decide whether to purchase the property for P48.89 billion or continue leasing it from BCDA.

BCDA president and chief executive officer Joshua Bingcang in a statement said the agreement “is a win-win for the government, as it enables BCDA to contribute more to the state coffers, while helping MIAA ensure uninterrupted air traffic flow through this critical gateway.”

“This serves as a vital public service contribution that will ultimately lead to the development of NAIA,” Bingcang added.

MIAA general manager Eric Jose Castro Ines said that “through this lease-to-own agreement between the MIAA and the BCDA, we are taking a crucial step towards securing a long-term development of NAIA Terminal 3.”

He added: “By transitioning from a leaseholder to a rightful owner, MIAA gains full control of the land, allowing us to plan, expand, and modernize the terminal without external limitations,.”

Should MIAA exercise its option to purchase, a downpayment of P10 billion, less the total cumulative annual payments already remitted, will be required. The outstanding balance will accrue interest at an annual rate of 5%, reflecting a reasonable return on investment for the government.

BCDA has likewise structured a 15-year payment plan, comprising equal semi-annual installments, which total approximately P3.74 billion annually.

BCDA said this potential acquisition would allow MIAA to secure ownership of the land and infrastructure, enabling them to make substantial and lasting investments in the airport’s development, modernization, and expansion, thereby enhancing its capacity to serve the ever-growing demands of both domestic and international air travel.

During the first quarter of 2024, NAIA Terminal 3 handled significant passenger traffic, processing 1.7 million international passengers across 7,700 flights and 1.5 million domestic passengers across 8,200 flights.

Pursuant to its mandate under Republic Act 7227 or the Bases Conversion and Development Act, the BCDA transforms former military camps into centers of economic growth, generating income through disposition proceeds from sale, lease, and joint venture, as well as concession fees and other receipts.

Portions of these proceeds are remitted to the Bureau of the Treasury through dividends and contributions to the Armed Forces of the Philippines and other beneficiary agencies. A share of the earnings is also used to fund BCDA’s infrastructure projects to help strengthen and boost the competitiveness of its economic zones.

READ: PEZA, BCDA eye areas of collaboration

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