A CONSORTIUM has proposed to the National Government to upgrade the Ninoy Aquino International Airport (NAIA) in Pasay City, Metro Manila.
The unsolicited proposal was submitted by the Manila International Airport Consortium (Miac), a partnership among six leading Filipino conglomerates and US-based Global Infrastructure Partners (GIP).
Valued at over P100 billion, the proposal includes a significant upfront payment to the National Government and committed investments in new facilities and technology to transform NAIA into a world-class airport, Miac said in a press statement on Thursday, April 27, 2023.
Miac Director Kevin L. Tan said they “are ready to put our combined resources forward in partnering with the government on this massive undertaking.”
“Our consortium brings unrivaled expertise, proven solutions and extensive capital. As the only large-scale operating gateway airport to the Philippines, the modernization and long-term sustainability of NAIA is a critical development priority for both the country’s public and private sectors. Recognizing the primacy of NAIA to the country’s economic growth, the consortium is bringing highly complementary expertise and making an unprecedented commitment to its sustainability and continued viability,” Tan added.
The Philippine-based conglomerates that comprise Miac are Aboitiz InfraCapital Inc., AC Infrastructure Holdings Corp., Asia’s Emerging Dragon Corp., Alliance Global – Infracorp Development Inc., Filinvest Development Corp. and JG Summit Infrastructure Holdings Corp.
The conglomerates have joined forces with GIP, one of the leading infrastructure investors and airport operators in the world, to propose this significant endeavor in partnership with the National Government, according to Miac.
Airports currently and previously owned or operated by members of the consortium include Mactan-Cebu, Clark, London Gatwick, Edinburgh, London City and Sydney airports.
Unparalleled
Miac said it has “unparalleled scale, track record, resources and expertise to deliver best-in-class solutions for the transformation of NAIA and aims to set the country’s airport infrastructure up for success in line with the government’s ‘Build, Better, More’ program.”
For her part, Tan’s fellow director Josephine Gotianun Yap said they submitted the proposal “united in the belief that our gateway to the world needs to represent the best of who we are as Filipinos.”
“Passing through our international gateway should be a seamless experience. We want the first thing that locals and foreigners alike see when they arrive in the Philippines to be a source of pride for all Filipinos. The Consortium is confident that with additional financial resources as well as operating process and technology improvements, NAIA can help achieve that vision,” Yap said.
Miac said it believed that with the significant capital investment and the implementation of its proposed operational and technological improvements, NAIA will have the ability to serve up to 62.5 million passengers per annum (“MPPA”) efficiently by 2028—more than double its currently constrained design capacity, which stands at only 31 MPPA.
Pre-pandemic passenger traffic had already reached 48 MPPA in 2019, underscoring the need to upgrade the airport to meet growing demand.
“We envision a truly world-class airport befitting the beauty of the Philippines: one where congestion, reliability issues, and unpleasant passenger experiences will become things of the past. Domestic and international connectivity are keys to unlocking economic growth to take the country to upper middle-income status,” Tan said.
“We look forward to a very near future where we in the private sector are working hand in glove with the government to operate an efficient and future-ready international gateway in and out of a more prosperous Philippines,” he added.