“It is an exciting time because we are about to make history.”
There is no mistaking, upon entering the Ninoy Aquino International Airport (NAIA), how busy and congested it is. It is the premier international gateway of the country in the metropolis, after all. But there is hope for a comfortable and convenient travel experience.
Straddling the cities of Pasay and Paranaque, NAIA has four terminals sharing two runways being utilized by more than 30 airlines.
Last week, San Miguel Corporation’s New NAIA Infrastructure Corp (NNIC) formally took over the operation of NAIA. The project is another testament to a public-private partnership for infrastructure development. It is also the second massive airport development being undertaken by SMC, the first being the ongoing New Manila International Airport in Bulacan.
The NNIC, then known as SMC-SAP & Co. Consortium was awarded the P170.6 billion concession agreement to rehabilitate, operate and maintain the NAIA early this year. The SMC-led NNIC will invest around P144 billion for the project. The concession is for 15 years with provision for a ten-year extension.
Apart from allocating 82.16 percent of NAIA’s revenue as government share, a P30-billion upfront payment was required. NNIC promptly remitted the upfront payment after the official transfer of the NAIA operations.
Finance Secretary Ralph Recto was quoted in a report saying “as the project finally takes off, the government is expected to generate roughly P900 billion in revenues from this deal over the entire term.”
“This will be equivalent to a revenue source of more or less P36 billion pesos to fund more projects in education, public health, and infrastructure,” he added.
Frequent travelers are excited to witness the outcome of the NAIA retrofitting. For first time visitors, they get their first impressions of the country upon arrival, with the airport playing a vital role to showcase a positive image of the country and its people.
NNIC General Manager Lito Alvarez admitted the project will take time and commitment but “we will do it right, no shortcuts.” Toward the end of the year, which is still Christmas season in the country, travelers could see significant improvements in the airport. This will be a timely present to the many balikbayans and tourists who travel to the country during the holidays.
“A world-class airport means more jobs, more tourists, and a stronger and more prosperous Philippines,” SMC Chairman and CEO Don Ramon S. Ang (RSA), who is also Chairman of NNIC, said.
The Philippine Statistics Authority said that in 2023, the share of Tourism Direct Gross Value Added (TDGVA) to the Philippine economy, as measured by the Gross Domestic Product (GDP), was estimated at 8.6 percent, higher than the TDGVA in 2022 by 47.9 percent.
Meanwhile, employment in tourism characteristic industries was estimated at 6.21 million in 2023, higher by 6.4 percent compared with the 5.84 million employment in tourism characteristic industries in 2022.
It remains to be seen in the near future how a rehabilitated NAIA under NNIC will affect the growth of tourism and related industries, aside from increase in tourist arrivals. But I am optimistic an improved NAIA will further boost the country as a choice tourist destination.
NNIC intends to increase annual capacity from 35 million to 62 million passengers. It was reported that a concourse will be developed at the site of the Philippine Village Hotel near NAIA.
The renovation project will also include improvement on aircraft parking bays, augmentation of vehicle parking spaces, installation of world-class systems and technology, upgrading of baggage handling system, and more retail and food & beverage options that are world-class. Also on the table is improving runway efficiency to increase aircraft movement from 40 to 48 per hour.
Reassignment of terminals will be undertaken gradually. Prior to the NNIC takeover, Terminal 1 had almost all international flights; 2, international and domestic flights of Philippine Airlines; 3, international flights not handled in Terminal 1 and some domestic flights; and 4, flights from regional and local carriers.
The modernization that will generate about 58,000 jobs will ensure efficient passenger terminal transfers and provide convenient land transport connectivity. The latter will be a big help especially for domestic travelers who find themselves at the mercy of unscrupulous cab drivers.
For years, NAIA’s reputation has not been favorable, at times being called one of the worst airports in the world.
“It is an exciting time because we are about to make history. We can begin the work of modernizing our airports and giving the Filipino people a world-class facility they deserve,” RSA said.
With the rehabilitation and transfer of its operation and maintenance to the private sector, hopes are high that the facility will become at par with the best in the world.
The author is the president of Million Trees Foundation Inc., a non-government outfit advocating regreening and watershed protection. He has also written and published a number of coffee-table books.
