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NAIA Infrastructure Corporation’s takeover of Ninoy Aquino International Airport will drastically improve the country’s main gateway, said Transportation Secretary Jaime Bautista
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Once the NAIA transformation is complete, the airport’s capacity will increase from 35 million passengers to 62 million passengers
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Air traffic movement is expected to rise from 40 movements per hour to 48 movements
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NNIC general manager Angelito Alvarez said several consultants have been engaged regarding terminal reassignment
NAIA Infrastructure Corporation’s (NNIC) takeover of the operations and maintenance of the Ninoy Aquino International Airport (NAIA) will drastically improve the country’s main gateway, according to Transportation Secretary Jaime Bautista.
“We have no doubt these SMC (San Miguel Corp.)-implemented projects, once completed, will conform with the comfortable, accessible, safe, secure, and affordable parameters we instituted in DOTr – that is, our transport infrastructures will provide comfortable, accessible, safe, sustainable and affordable travel experience,” Bautista said in a statement during the recent Aviation Forum organized by the Economic Journalists of the Philippines and SMC.
SMC is part of the SMC SAP & Company Consortium, which won the bidding for the 15-year concession agreement for the NAIA rehabilitation project. NNIC is the special purpose company for the concession that was created by the consortium, which also includes RMM Asian Logistics, Inc.; RLW Aviation Development Inc., and Incheon International Airport Corp.
READ: SMC-led consortium bags P170.6B NAIA rehabilitation project
NNIC is scheduled to take over NAIA on September 14.
Once the NAIA transformation is complete, Bautista said the airport’s capacity will increase from 35 million passengers to 62 million passengers and an uptick in air traffic movement from 40 movements per hour to 48.
The government is also expected to take in P900 billion in revenues for the duration of the concession agreement. This is inclusive of the concessionaire’s P30 billion upfront payment, fixed annuity payment of P2 billion annually, and 82.16% government share.
The rehabilitation will also generate at least 58,000 employment for Filipinos, according to Bautista.
NNIC general manager Angelito Alvarez, during the forum, said they have already engaged with several consultants regarding terminal reassignment.
Under the plan, NAIA Terminal 2 will be a purely domestic terminal while Terminal 3 will cater to foreign airlines currently operating in Terminal 1. Terminal 1 will be used by Philippine Airlines while Terminal 4 will cater to AirAsia flights that are currently in Terminal 2.
The reassignment will, however, take several years to complete as NNIC is awaiting completion of NAIA Terminal 2 extension.
DOTr earlier said NNIC plans to expand two of NAIA’s passenger terminal buildings. The north wing of Terminal 2 will be expanded towards the Philippine Village Hotel and Nayong Pilipino area. The south wing will be extended towards Terminal 1 after the International Cargo Complex and fuel farm are relocated.
The concessionaire also plans to spend P3 billion to P5 billion to construct a new off-ramp connection between the NAIA Expressway to NAIA Terminal 3 to improve access to the terminal.
The 15-year contract involves the rehabilitation, expansion and operation of NAIA to address long standing capacity issues.
Under a rehabilitate-operate-expand-transfer arrangement, the concessionaire has 15 years–extendable by another 10 years–to enhance airport passenger terminals, airside facilities, develop commercial assets and utility systems, and provide surface access facilities for intermodal transfer, inter-terminal passenger transfer facilities, and services, among other obligations.
Capital outlay for the project is estimated at P88 billion in the first six years, or at least P122.3 billion for the entire 25-year concession period.
