Finance Chief comments on NAIA PPP Concession agreement

Finance Secretary Ralph G. Recto expressed confidence in the transformation of the Ninoy Aquino International Airport (NAIA) into one of the world’s best airports following the signing of the NAIA public-private partnership (PPP) Concession Agreement on March 18, 2024.

Recto emphasized that the project aims to provide world-class service to passengers, ensuring a departure from NAIA’s previous reputation as one of the world’s worst airports to becoming one of the best.

The estimated project cost of PHP 170.6 billion will address challenges such as undercapacity, congestion, and underinvestment at the country’s main gateway.

Under the Marcos, Jr. administration, the NAIA PPP deal is seen as a significant achievement, setting unprecedented benchmarks in efficiency and speed.

The project was evaluated and approved within a record-breaking six weeks, showcasing remarkable efficiency in the approval process. Recto highlighted the importance of this project as a model for future PPP initiatives, emphasizing the economic benefits it will bring to all stakeholders.

The contract for the NAIA project was awarded to the SMC-SAC Consortium on February 16, 2024, with the consortium sharing 82.16% of future gross revenues with the government, excluding passenger service charges.

This partnership is expected to generate approximately PHP 900 billion in revenues for the national government over the concession period, contributing significantly to funding social services and infrastructure development.

Recto called on the consortium to maximize NAIA’s potential to leverage the tourism industry for accelerated economic growth. With tourism playing a vital role in the country’s GDP and employment, the Finance Chief stressed the importance of ensuring the success of such projects to drive economic progress.

He also emphasized that the NAIA PPP concession agreement is just the beginning of a series of pioneering projects that the government aims to finalize in the future.

Each project undergoes rigorous scrutiny by the Department of Finance to ensure maximum benefits for the Filipino people. The signing of this agreement marks a significant step towards enhancing infrastructure and services, setting the stage for further development and growth in the country.