After the Department of Transportation (DOTr) on Thursday determined that the SMC SAP & Company Consortium's financial offer was the best among the three bidders, San Miguel Corporation (SMC) declared that it was prepared to take on the modernization of the Ninoy Aquino International Airport (NAIA).
Ramon S. Ang, President and CEO of SMC, stressed that the consortium's funding plan gives the government and the Filipino people priority.
“Our aim is to elevate NAIA to world-class standard, ensuring an exceptional experience for all travelers with first-rate services and facilities. Our commitment is to ensure this project brings significant value and advantages to our nation, our government, and our kababayans (fellow Filipinos),” said Ang in a press release.
The government gave a group led by billionaire Ramon Ang's San Miguel the 170.6 billion peso contract to renovate and run the Ninoy Aquino International Airport (NAIA), the nation's principal international gateway.
Tapping the private sector
To lessen the financial strain on the government, the Philippines is turning to the private sector to renovate NAIA, which the travel website Sleeping In Airports has repeatedly named the worst airport in the world.
The successful bidder will renovate and run the crowded airport for roughly 170.6 billion pesos, or $3 billion.
The project is for a 15-year concession deal with a 10-year option to extend it, as well as nearly increasing the airport's yearly passenger capacity to 62 million.
Before the pandemic, NAIA handled 48 million passengers, far more than its 33.2 million capacity. Recently, the airport has been finding it more difficult to accommodate the increasing volume of air traffic.
Collaboration with IIAC
The partnership, which includes Incheon International Airport Corp. of South Korea, proposed an 82.2% revenue share to the government for NAIA en route to the winning bid.
Ang emphasized its strategic partnership with IIAC, which is centered on creating an airport ecosystem that supports improved connectivity, superior service, and operational effectiveness in addition to providing Filipinos with accessible and reasonably priced travel options.
Named the fourth best airport globally in 2022 by air transport research firm Skytrax, the largest airport in South Korea, Incheon International Airport, opened its doors in 2001 and is owned and operated by IIAC.
Incheon International Airport is the first airport in the world to get the highest customer experience award from Airports Council International, a trade body representing the world's airports.
“Our vision is to create an integrated airport network that not only improves the travel experience but also supports sustainable economic growth and elevates the Philippines as a prime hub for tourism, business, and investment in the region,” said Ang
