San Miguel Corporation (SMC) on Thursday said it is ready to modernize the Ninoy Aquino International Airport (NAIA) after it emerged as the highest bidder for the P171 billion contract to rehabilitate, operate and maintain the country’s main international gateway.
The SMC SAP Company Consortium, which is formed by San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc. and Incheon International Airport Corp. offered a highest bid of 82.16 percent revenue share to the government at the opening of financial proposals for NAIA.
Under the terms of reference, the percentage revenue share to the government is the main bid parameter for the auction. This means the higher proposed revenue share to the government is better.
The other two bidders that submitted financial bids were Manila International Airport Consortium, which is composed of Aboitiz InfraCapital, Ayala’s AC Infrastructure Holdings Corp., Alliance Global-Infracorp, Filinvest and JG Summit Holdings (25.91 percent), and GMR Airports International B.V., Cavitex Holdings, Inc. and House of Investments, Inc. of GMR Airports Consortium (33.3 percent).
Asian Airport Consortium was disqualified to join the bidding process by the Pre-qualifications, Bids and Awards Committee (PBAC) because it failed to comply with the technical proposals for NAIA, according to Department of Transportation (DOTr) undersecretary for aviation Roberto Lim.
Asian Airport Consortium, is composed of Asian Infrastructure and Management Corp., Cosco Capital Inc., Philippine Skylanders Inc. and PT Angkasa Pura II.
Lim said this meant only three bidders were allowed to proceed to the next stage of having their financial proposals opened by PBAC.
Ramon S. Ang, president and chief executive of SMC, emphasized that the consortium’s financial proposal prioritizes benefits to the government and the Filipino people.
“Our aim is to elevate NAIA to world-class standard, ensuring an exceptional experience for all travelers with first-rate services and facilities. Our commitment is to ensure this project brings significant value and advantages to our nation, our government, and our kababayans,” said Ang.
He lauded the DOTr for facilitating a transparent and equitable bidding process.
Ang also pointed to the potential synergies with its ongoing development of the New Manila International Airport (NMIA) project in Bulacan. This concurrent development is expected to enhance operational efficiencies, reduce costs, and optimize flight schedules, contributing to a more connected and accessible Philippines poised for future growth.
“Our vision is to create an integrated airport network that not only improves the travel experience, but also supports sustainable economic growth and elevates the Philippines as a prime hub for tourism, business, and investment in the region,” Ang said.
Meanwhile, DOTr-PBAC chairperson Timothy John Batan noted that a certain bidder filed a dispute and they will resolve it before Feb. 14. While the dispute is ongoing, Batan said the financial bid evaluation will proceed.
The results of the financial evaluation will be announced on Feb. 14.
The government will issue the notice of award on Feb. 15. The winning bidder will have until March 6 to submit the post-award requirements.
The DOTr expects to sign the concession agreement with the winning bidder on March 15, with the turnover of the facility likely in September this year.
It will serve as co-grantors for the project with the Manila International Airport Authority (MIAA), which would have a 15-year concession period and an option for a 10-year extension.
The NAIA project involves capital investment to improve the airport’s facilities to comply with the International Civil Aviation Organization (ICAO) and other internationally accepted standards.
This 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.
The concessionaire will be responsible for both landside and airside operations of the NAIA.
It will be required to undertake works to enhance the compliance, safety and security of the airport, optimize and boost airport capacity to cater to the increasing air traffic, in accordance with objective parameters to be provided in detail in the concession agreement.
Editor’s Note: This story has been updated. New details include a reaction from the San Miguel Corporation.