BDO willing to provide San Miguel with loans for NAIA modernization

The country’s largest bank is willing to provide San Miguel Corp. with loans to bankroll the modernization of the Ninoy Aquino International Airport (NAIA).BDO Unibank Inc., owned by the Sy family, said that as a lender, it is willing to support San Miguel for the rehabilitation, operations and maintenance of the main gateway in Parañaque City.“There is no problem. I think they have the substance, and we believe that we have to improve NAIA. So, we’re helping,” BDO chairperson Teresita Sy-Coson told reporters when asked about BDO’s interest in financing the NAIA project.Coson said, however, that BDO has no plan to invest in the San Miguel—led consortium.“No investment, just a lender,” she said.The SMC SAP Company Consortium, formed by San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc. and Incheon International Airport Corp. secured a P171-billion contract to rehabilitate, operate and maintain NAIA.San Miguel Group is mobilizing at least P88 billion in capital investments within the first six years and at least P122.3 billion in capital investments for its entire 25-year concession period.The operations and maintenance of the airport will be handed over to San Miguel Group on or before September 2024 after the signing of the concession agreement with the government last month.The NAIA PPP Project is expected to boost economic growth, while lifting tourism arrivals with improved levels of services and upgraded airport infrastructure.The project involves capital investment to improve the airport’s facilities to comply with the International Civil Aviation Organization (ICAO) and other internationally-accepted standards.The concessionaire will be responsible for both landside and airside operations of NAIA.It will be required to undertake works to enhance the compliance, safety and security of the airport, optimize and boost airport capacity to cater to the increasing air traffic in accordance with objective parameters to be provided in detail in the concession agreement.