MANILA — The government’s non-tax revenue stream received a substantial boost from a PHP30 billion upfront payment by San Miguel Corporation’s New NAIA Infra Corp. (NNIC) for the Ninoy Aquino International Airport (NAIA) public-private partnership project, announced Finance Secretary Ralph Recto.
According to the Philippines News Agency, the substantial payment was part of the terms for the transfer of NAIA’s operations and maintenance to NNIC, which officially took place on September 14. Recto confirmed that the payment was processed by the Bureau of the Treasury on Monday. “This strategic project serves dual purposes: transforming NAIA into a world-class facility and ensuring a robust income stream for the government,” Recto stated in a news release.
The agreement with San Miguel not only includes this hefty upfront payment but also stipulates a fixed PHP2 billion annual payment in addition to an 82.16 percent revenue share for the national government, which excludes passenger service charges. Recto highlighted the long-term financial benefits of this agreement, noting, “The PHP30 billion is just the initial contribution from our private sector partner. Over the life of the 15-year concession, extendable by another 10 years, the government anticipates generating approximately PHP900 billion in revenue, which equates to roughly PHP36 billion annually.”
These funds are earmarked for further investments in key sectors such as education, public health, and infrastructure development. The NAIA rehabilitation project, valued at PHP170.6 billion, represents the largest PPP initiative under President Ferdinand R. Marcos Jr.’s administration. It is projected to enhance the airport’s capacity from 35 million to 62 million passengers annually and increase air traffic movements from 40 to 48 per hour.
The project is a collaborative effort led by the Department of Transportation and the Manila International Airport Authority, aiming to significantly upgrade the airport’s facilities and operational capabilities.