NAIA modernization to generate P900 billion in earnings for gov’t: DOTr

(Eagle News)–The public-private partnership for the modernization of the Ninoy Aquino International Airport is expected to yield P900 billion in earnings for the national government.

According to the Department of Transportation, the NAIA PPP, over the course of its 25-year agreement with the winning concessionaire SMC-SAP Consortium, the government will earn P36 billion annually, which can be redirected to other social and infrastructure programs.

The DOTr said the government would secure a guarantee of P30 billion as upfront payment and P2 billion in annual payments.

These are in contrast to the P23.3 billion remitted by the Manila International Airport Authority from 2010 to 2023, which would translate to P1.78 billion annually.

The DOTr announced last week that the concession agreement for the modernization of NAIA was awarded to the Consortium under the PPP scheme.

The agency said the winning bidder had proposed allocating 82.1% of NAIA revenues to the government.

The other two, GMR Airports Consortium and Manila International Airport Consortium, meanwhile, proposed revenue shares of 33.3% and 25.9%, respectively.