THE International Finance Corp. (IFC) has released the finalized agreements between the Bases Conversion and Development Authority (BCDA) and the North Luzon Airport Consortium on running Clark International Airport in Pampanga province.

In a statement on Wednesday, the World Bank Group member said the concession on the operation and maintenance (O&M) of the Central Luzon air hub for 25 years followed “the engineering, procurement and construction (EPC) public-private partnership (PPP) concluded in 2017.”

“This project demonstrates IFC’s willingness to test and try out new PPP models in support of the government’s goal to deliver crucial infrastructure that is key to sustaining the country’s growth momentum,” IFC Director for East Asia and Pacific Vivek Pathak said in the statement.

“The handover of the airport to a globally recognized operator will also help ensure quality service delivery and boost traffic connectivity to the northern provinces of the country—as well as to the region and the rest of the world,” he added.

“As the first hybrid PPP airport awarded through a transparent and competitive tender, we are confident that Clark Airport will soon be able to welcome more passengers with higher-quality service,” BCDA President Vince Dizon said.

“IFC’s advice has been instrumental in structuring these transactions, which have become a model for hybrid PPPs in the Philippines,” he added.

IFC served as BCDA’s lead advisor, offering expertise in rendering the EPC and O&M contracts for the concession.

Under the concession deal, the consortium — made up of Changi Airport of Singapore, Filinvest Corp., JG Summit Holdings Inc. and
Philippine Airport Ground Support Solutions — will build and manage a new, 100,000-square-meter terminal at the airport that can serve an estimated 8 million passengers annually, compared with the current 2 million.

This terminal’s construction is expected to decongest the country’s main gateway, Ninoy Aquino International Airport, and generate more jobs and increase development in Central Luzon, which the IFC sees as a “growing economic center.”

The BCDA awarded the O&M contract to the consortium in December.