SMC-SAP & Company Consortium signs NAIA PPP Concession Agreement, first PPP contract to be awarded since effectivity of PPP Code

The Department of Transportation (DOTr) and the Manila International Airport Authority (MIAA) signed today the Concession Agreement with the SMC-SAP & Company Consortium for the Ninoy Aquino International Airport (NAIA) Public-Private Partnership (PPP) project, the first PPP contract to be awarded since the new PPP Code took effect on December 23, 2023.

On February 16, 2024, DOTr and MIAA declared SMC-SAP & Company Consortium as the winning bidder following its submission of the highest bid amount. The SMC-SAP & Company Consortium, which has been incorporated as the New NAIA Infra Corp., is composed of conglomerates San Miguel Holdings Corp, RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp.

With an estimated project cost amounting to P170.6 billion, the public can expect a marked improvement in overall passenger experience through modernized terminals, optimized airport capacity, and reliable operations over its 15-year concession period, which may be extended for another 10 years.

This landmark PPP project aims to increase airport capacity from 35 million passengers per annum to 62 million passenger per annum, increase air traffic movements from 40-42 per hour to 48 per hour, and deliver internationally benchmarked performance to provide excellent service for its passengers.

In her speech, PPP Center Executive Director Ma. Cynthia C. Hernandez emphasized that the signing of the NAIA PPP Concession Agreement is a testament of the Marcos administration’s commitment to fostering stronger collaboration between the public and private sectors in infrastructure development.

“It is a significant milestone in the Philippine infrastructure landscape, highlighting the government’s commitment to its Build-Better-More program. We are confident that the streamlined process this project underwent will serve as a blueprint for future Philippine PPP projects,” Hernandez said.

The NAIA PPP project is one of the fastest PPP initiatives undertaken in the country. Following its signing today, the NAIA PPP Concession Agreement achieves the distinction of being the fastest PPP project to progress from submission to the NEDA Investment Coordination Committee for approval to Concession Agreement signing.