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Sunday, May 19, 2024

BCDA seeks threefold increase in NAIA annual lease to P600m

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By Othel V. Campos

State-run Bases Conversion Development Authority (BCDA) is pushing a P15-billion deal with the Manila International Airport Authority (MIAA) for the renewal of the 25-year lease for the 60-hectare land occupied by Ninoy Aquino International Airport (NAIA) Terminal 3.

BCDA president and chief executive Joshua Bingcang said over the weekend negotiations were ongoing on raising the lease threefold to P600 million a year from P200 million.

“One of the biggest revenue potentials of the BCDA is the renewal of lease for the land where Terminal 3 is located. Basically, we’re projecting at least P600 million a year. We own the land,” Bingcang said in a briefing with reporters.

“They actually have two options. They can either buy the land at zonal rates, or we can renew that contract for another 25-year lease,” he said.

The tract of land where Terminal 3 is located is part of the asset disposition portfolio of the BCDA.

Bingcang said the agency was willing to dispose of the land and sell it to MIAA for P50 billion at current zonal valuation, which could be higher if the BCDA would sell at current market value.

The lease contract for Terminal 3 was signed in 1997 during the Ramos administration.

Bingcang met with MIAA acting general manager Eric Jose Castro Ines Wednesday to serve the order of payment for the land where Terminal 3 is located.

He said the airport agency had met its payment obligations.

“They have to raise the payment from commercial revenues, not just from terminal fees. But it’s regulated. That’s a good thing about airport, they just cannot raise fees, they’re under regulation,” he said.

He said airport users should not worry about sudden increases in fees or rental charges for airport occupants and retailers.

Proceeds from airport fees and revenues support the Armed Forces of the Philippines’ (AFP) modernization program.

BCDA said that from May 1993 to October 2023, it remitted P78.34 billion to the program.

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