• The NAIA Public-Private Partnership Project has been awarded “Transport Deal of the Year” under the Asia-Pacific Awards by Project Finance International
• The project is spearheaded by the Department of Transportation and San Miguel-led New NAIA Infra Corp, considered one of the most ambitious and impactful airport rehabilitation efforts globally
• The consortium is comprised of San Miguel Holdings Corp, RMM Asia Logistics, RLW Aviation Development, and Incheon Airports, which set up the NNIC
The Ninoy Aquino International Airport (NAIA) Public-Private Partnership (PPP) Project has been awarded the “Transport Deal of the Year” under the Asia-Pacific Awards by Project Finance International (PFI).
Spearheaded by the Department of Transportation (DOTr) and San Miguel-led New NAIA Infra Corp (NNIC), the project is hailed as one of the most ambitious and impactful airport rehabilitation efforts globally.
PFI said: “The project is of great significance to the Philippines. The airport is overused and overwhelmingly exceeds its capacity, thus rehabilitation and expansion is much needed. This project is possibly the largest brownfield airport PPP project effected anywhere in the world at the time of its launch.”
The San Miguel consortium New NAIA Infra Corp, which includes San Miguel Holdings Corp, RMM Asia Logistics, RLW Aviation Development, and Incheon Airports, was selected via a tender process, offering a revenue-sharing ratio of 82.16% of gross revenue.
The project raised P116.2 billion ($2 billion) in financing, with P80 billion ($1.4 billion) as a project finance (PF) loan and $600 million in equity. The PF debt, arranged by BDO Capital and lenders included BDO Unibank, Bank of Commerce, Asia United Bank, China Banking Corp, Security Bank, and Development Bank of the Philippines.
Loan terms include a 15-year tenor, extendable by another decade. Legal and consultancy support involved firms such as Picazo Buyco Tan Fider & Santos, SyCip Salazar Hernandez & Gatmaitan, and Lee & Ko as Korean counsel.
The transport department engaged the Asian Development Bank as its transaction adviser. In turn, the bank brought on PwC as a commercial consultant, Pinsent Masons as international counsel, and PJS Law as local counsel.
The NAIA project aims to increase passenger capacity from 47 million to 62 million annually and includes significant upgrades to airside infrastructure and air traffic control systems. It also integrates sustainability features such as solar panels, energy-efficient systems, and rainwater harvesting, with at least 20% of total energy from renewable sources.
This initiative is recognized as the largest brownfield airport PPP project globally at its launch, addressing the critical overcapacity issues faced by NAIA.
Transport Secretary Jaime Bautista said it has been collaborating with the private sector to “bankroll big-ticket infrastructures that are seen to provide world-class and improved travel experience for all.”