The government projects generating P900 billion in revenue throughout the concession period of the Ninoy Aquino International Airport (NAIA) it has awarded the San Miguel consortium of companies.
Transportation Undersecretary and chairman of the pre-qualification bids and awards committee (PBAC) Timothy John Batan, said the San Miguel Group is mobilizing at least P88 billion in capital investments in the first six years of the concession. For the entire length of the contract, capital investments were to aggregate at least P122.3 billion.
In comparison, Batan said the total capital outlay for the NAIA imbedded in budget of the Manila International Airport Authority (MIAA) from 2010 to 2023 is only P27.09 billion.
According to Batan, the NAIA project is expected to generate P900 billion for the nation’s coffers for the duration of the 25-year concession period, inclusive of the P30 billion upfront payment; P2 billion annual payment and 82 percent government revenue share.
San Miguel said its proposal was designed not only to elevate the NAIA to world-class standard but also to ensure the government benefits from the revenue-sharing agreement.
“This aims to secure a favorable outcome for our shareholders while prioritizing fairness and long-germ sustainability,” San Miguel said.
The DOTr awarded the 171 billion contract to rehabilitate, operate and maintain the Ninoy Aquino International Airport (NAIA) to SMC SAP Company Consortium.
The SMC SAP Group, which is formed by San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc. and Incheon International Airport Corp. had offered a highest bid of 82.16 percent revenue share to the government at the opening of financial proposals for NAIA.
Under the terms of reference, the percentage revenue share to the government is the main bid parameter for the auction. This means the higher proposed revenue share to the government the better.
The winning bidder will also pay P30 billion upfront cost and annuity payment of P2 billion to the government.
Transport Secretary Jaime Bautista said the agency already informed the other bidders that the contract had been awarded to the San Miguel Group.
The other two were the Manila International Airport Consortium composed of Aboitiz InfraCapital, Ayala’s AC Infrastructure Holdings Corp., Alliance Global-Infracorp, Filinvest and JG Summit Holdings, and GMR Airports International B.V., Cavitex Holdings, Inc. and House of Investments, Inc. of GMR Airports Consortium.
Asian Airport Consortium was disqualified because it failed to comply with the technical proposals for the NAIA.
Asian Airport Consortium relates to the Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders Inc. and PT Angkasa Pura II.
The winning bidder still has until 6 March this year to submit the post-award requirements.
The DOTr looks to sign the concession agreement with the winning bidder on 15 March and the turnover of the facility in September this year.
It will serve as co-grantor of the project with the MIAA which has a 15-year concession period and an option for a 10-year extension.
