MANILA (UPDATE) -- The Department of Transportation (DOTr) on Monday signed the deal with the San Miguel-led consortium to rehabilitate the Ninoy Aquino International Airport.

SMC SAP & Co. Consortium bagged the deal to modernize the country's main gateway for about P170 billion.

The consortium is composed of San Miguel Holdings, RMM Asian Logistics, RLW Aviation Development, and Incheon International Airport Corporation.

Transportation Secretary Jaime Bautista said the project will boost the airport’s capacity from 35 million to 62 million passengers annually.

With the signing of the concession agreement, the operations and maintenance of the airport will be handed over to the consortium on or before September 2024.

He also clarified that the consortium will give 82 percent of other income from airport operations.

“Yun [namang] other income kung saan magkakaroon ng share ang gobyerno, eto yung mga tinatawag natin na mga fees, yung bayad ng mga concessionaires doon sa kanilang inuupahan na area, yung landing & takeoff fees, counter rentals, marami kasing mga income ang pwedeng ma-generate dito sa airport,” he explained.

(The other income, from which the government will get a cut, will come from fees, concessionaire rentals, landing and takeoff fees, counter rentals, there are a lot of sources of income you can generate at the airport.)

Transpo chief assures no job losses as SMC takes over NAIA modernization

Bautista noted that the government will also get a small cut from the terminal fees, but noted that the bulk of it will go to the operator for their expenses.

He stressed, however, that terminal fees won’t be increased right away.

“Hindi kaagad pwedeng magtaas ng terminal fee. Ang usapan dito ay kailangan magkaroon ng notable improvement in service,” he stressed.

(You can’t hike the terminal fees right away. We agreed that there must be notable improvements in service first.)

IMMEDIATE IMPROVEMENTS

In a press conference after the signing, San Miguel President and CEO Ramon Ang said passengers will immediately feel the difference as it plans to upgrade many aspects of the airport.

“Wala na yang mga isyu ng sirang upuan, sirang aircondition, escalator, elevator, walkalator. Lahat ng problemang yan, dapat ayos na yan. Pati mga boarding bridge,” he said.

(There will be no more issues with broken chairs, broken air conditioning, escalators, elevators, walkalators. All those problems should be fixed including boarding bridges.)

Ang added they will also upgrade the X-ray machines, as well as use technology to make it easier and quicker to pass through Immigration and Customs. Some of the offices at NAIA will also be transferred to a soon-to-be-built building to decongest the terminals now. A Skyway bypass road will also be constructed to reduce traffic going to NAIA.

Ang also vowed to add another passenger terminal building which will be located at the Philippine Village Hotel, pending approvals. It will be a big terminal near NAIA Terminal 2.

“[It's a] brand new passenger terminal building that will handle 35 million passengers per year with a concourse with a target to build 50 boarding bridges. Parang 66 feet ang floor-to-ceiling height niyan. Grabe ang ganda niya, engrade talaga,” he exclaimed.

Bautista also made a request to Ang, adding that his request would normally take several months or over a year to do if the government did it.

‘Request ko kay Mr Ang sana bigyan priority construction ng Visual Tracking Guidance System. Eto po yung pag nag-park ng eroplano, instead may marshall, it will be automated na,” said Bautista.

(My request to Mr. Ang is to give priority to the construction of the Visual Tracking Guidance System. It’s for when airplanes park--instead of marshalls, it will be automated.)

Ang also promised to clean NAIA after the airport was hounded by reports of pests and rodents. The San Miguel chief however called on the public and the media not to report about the pests as it is an embarrassment to the country.

The government stands to get P900 billion from this deal for the duration of the 15-25 year term. San Miguel group is also constructing the multi-million peso Bulacan airport, but Ang assures the public that San Miguel has enough funds for these major infrastructure projects