Mega consortium MIAC to invest P210-B for NAIA modernization

The proposed rehabilitation of the Ninoy Aquino International Airport (NAIA) by the Manila International Airport Consortium (MIAC) is projected to contribute $14.6 billion to the Philippine economy through direct investments and knock-on effects on trade and tourism.

The mega-consortium – composed of six of the country’s largest conglomerates – said its unsolicited bid to upgrade the NAIA would cost $3.8 billion in total or roughly P210 billion — double the P100-billion project cost it announced in April. 

The P100 billion is only the initial portion of MIAC’s investments. Approximately $1 billion would be spent in the first five years while the remaining $2.8 billion will be used for the rest of the 25-year concession.

“This investment will be geared toward undertaking facility upgrades, maintenance work, implementing new operating processes and introducing new technologies that will increase passenger capacity, shorten waiting and processing times, introduce more comfortable and modern facilities, and provide better connectivity between terminals, among others,” the consortium noted.

MIAC seeks to double passenger capacity of the congested international gateway to 62.5 million per annum by 2028 from 31 million currently. The new proposal also offers $1 billion in upfront concession payment.

“We believe that an upfront payment now to the government can potentially contribute to the country’s response to fiscal challenges due to the economic impact of the pandemic and current tightening global financial conditions,” said Cosette Canilao, president and CEO of consortium member Aboitiz InfraCapital.

The consortium also includes Ayala, Lucio Tan, Andrew Tan, Gotianun and Gokongwei groups, as well as US-based fund Global Infrastructure Partners.