SMC to transform NAIA to world-class airport

San Miguel Corporation (SMC) is preparing to take over the operations of the Ninoy Aquino International Airport (NAIA) and transform it into a world-class facility.

On September 14, SMC will start operating and maintaining NAIA after winning DOTr’s hotly contested privatization exercise. SMC partnered with Incheon International Airport Corporation in its bid for the 15-year NAIA concession agreement.

NAIA has been tagged for so long as one of the worst airports, plagued by congestion, outdated infrastructure and logistical nightmares.

“We are preparing. Everything that needs to be prepared, the order of all the necessary equipment,” SMC president Ramon Ang said at the sidelines of the recent Philippine Economic Briefing in Pasay City.

The San Miguel Group is spending at least P88 billion within the first six years and P122.3 billion in capital investments for its entire 25-year concession period.

The project involves the improvement of the airport’s facilities to comply with the International Civil Aviation Organization (ICAO) and other internationally accepted standards.

It means modernizing the terminals, optimizing and enhancing the capacity of the airport to 62 million passengers a year, enhancing asset quality and passenger experience, improving the information and technology systems infrastructure and ensuring reliable operations over the period of the concession.

Transportation Secretary Jaime J. Bautista said SMC has formed a special purpose company – New NAIA Infra Corp. (NNIC), that will take over NAIA. They plan to expand two of the four passenger terminals.

“The north wing of Terminal 2 will be expanded towards the Philippine Village Hotel and Nayong Pilipino area. The south wing will be extended towards Terminal 1 after the International Cargo Complex and fuel farm are relocated,” Bautista said.

The terminal 2 expansion will lead to a jump in capacity from 9 million passengers a year to 32 million. The north concourse of Terminal 3 will be expanded to accommodate 25 million passengers a year, from 14 million.

“Also, passengers using Terminal 3 will have convenient access to the Metro Manila subway with the final station of the Metro Manila Subway’s airport service to be constructed in front of the terminal,” Bautista said, adding that the Terminal 1 would be rehabilitated, while Terminal 4 would eventually be closed once Terminal 2 was expanded.

“Terminal 4 will be repurposed as a warehouse and site of admin offices,” he said.

Passenger capacity at all terminals will eventually jump from 32 million passengers a year to 60 million.

A new remote apron will be designated for general aviation, while aircraft parking will increase from 61 to 104 bays.

Bautista said NNIC would build a three-story AirPort Express Hotel adjacent to the north wing of Terminal 2 to accommodate those who missed their connecting flights and those who have early morning departures.

“Vehicle parking outside of Terminals 1 and 3 will more than double – from 5,800 to 12,400 slots. At Terminal 1, a multi-level carpark building will rise with an area of more than 62,000 square meters, while at Terminal 3, a new five-level car park will be added to the existing carpark,” he said.

An access road will be constructed towards the north wing of Terminal 2 once expansion is finished.

Bautista said that at Terminal 3, a new 63,000-square-meter headhouse building would be constructed, equipped with the necessary airport systems and management components. “San Miguel’s plans also include building an OFW lounge at Terminal 3 similar to that at Terminal 1,” Bautista said. “They will also undertake a re-training of air traffic controllers and construct a new sewage treatment plant.”

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