DOTr and SMC-SAP Consortium Set To Sign P170.6 Billion NAIA Rehab Contract On March 18
NAIA REHAB – The signing of the P170.6-billion agreement for the rehabilitation of NAIA is set to take place on March 18th.
The Ninoy Aquino International Airport (Naia) rehabilitation contract, valued at P170.6 billion, is slated for signing on March 18, marking the official initiation of a crucial upgrade for the nation’s primary international gateway. Transportation Secretary Jaime Bautista affirmed the progress at a recent event in Quezon City, confirming adherence to the schedule for the contract signing.
Based on a report from Inquirer, the SAP & Co. Consortium, led by San Miguel Corp. (SMC) under Ramon Ang, has reiterated its financial commitment with an ambitious 82.16-percent revenue share proposal to secure the contract.
The anticipated financial benefits for the government during the 25-year concession period amount to P900 billion, inclusive of a P30-billion upfront payment, a P2-billion annuity payment, and revenue sharing. Bautista noted ongoing efforts on post-award documents leading up to the official signing.
Comprising SMC, RLW Aviation Development Inc., RMM Asian Logistics Inc., and Incheon International Airport Corp., the consortium emerged victorious in the bidding race on February 16, surpassing competitors such as GMR Airports Consortium and Manila International Airport Consortium.
The SMC-led group’s concession period is initially set at 15 years, with a potential extension of another 10 years contingent upon a performance evaluation in the 8th year. The consortium’s responsibilities include overhauling passenger terminals, runway, aircraft parking area, and airfield lighting, while also constructing facilities for intermodal transfers at the terminals.
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According to the report, expectations are in place for the consortium to implement preliminary improvements at the airport as early as next year, concentrating on reducing wait times at check-in and immigration counters, increasing parking availability, and enhancing seating capacity in pre-departure areas. The overarching goal of the rehabilitation project is to elevate Naia’s annual passenger capacity to around 60 million from its current 32 million, alleviating the strain on its existing capacity.