Consortium bags $3bn PPP deal to rehabilitate Ninoy Aquino International Airport in Philippines

The SMC-SAC consortium, made up of San Miguel Holdings, RMM Asian Logistics, RLW Aviation Development and Incheon Airport Corp, beat two other bidders to the public-private partnership (PPP) deal.

SMC-SAC will be responsible for improving the airport’s runways, four terminals, and other facilities as part of its responsibilities as the airport’s concessionaire.

It will pay PHP 30 billion (US$540 million) up front to the government as well as an additional PHP 2 billion (US$36 million) each year under the terms of the 15-year deal.

To win the bid, it promised the government an 82.16% share of the revenue generated by the airport, not including passenger service charges. Rival bidders GMR Airports Consortium and Manila International Airport Consortium offered 33.3% and 25.9% respectively.

The PPP project is expected to increase airport capacity from 35 million passengers annually to 62 million, expand air traffic movements per hour from 40 to 48 and use private sector expertise for modernization and capacity expansion.

SMC-SAC will take over operation of the airport within three to six months.