San Miguel defends P1.5-T NAIA PPP deal vs corruption, fee claims

Insider Spotlight

• DOTr, PPP Center: NAIA modernization was competitively bid
• NNIC invested P3.25B in first year under P72-B upgrade plan
• Government to get 82% of revenues, P57B already remitted

The conglomerate operating the country’s premier airport on Tuesday pushed back against accusations that the P1.5-trillion Ninoy Aquino International Airport (NAIA) public-private partnership (PPP) was “scandal-ridden,” saying the project was competitively bid and has already delivered financial and service improvements.

Competitive bidding, not negotiation

No less than the Department of Transportation (DOTr) and the Public-Private Partnership (PPP) Center said the NAIA rehabilitation project was “competitively bid out” with the Asian Development Bank as independent transaction advisor, the firm pointed out in a rebuttal to a press statement issued by the Puso ng NAIA advocacy group earlier.

Both government agencies noted that “all terms were set by the government, not by any bidder,” adding that results were audited and published.

The New NAIA Infrastructure Corp. (NNIC), led by San Miguel Corp., won the bid by offering the highest revenue share to the government—82.16 percent—and meeting all technical and financial qualifications.

P3.25B in upgrades in first year

NNIC said it has already invested P3.25 billion in upgrades as part of a P72-billion, five-year modernization plan since taking over operations in September 2024.

The firm listed key works completed or ongoing, including:

• new chillers, power substations, and drainage upgrades;
• airfield lighting and pavement rehabilitation;
• terminal refurbishments, Wi-Fi upgrades, and faster immigration lines;
• new escalators, walkalators, and CCTV systems;
• traffic flow improvements and wider curbsides;
• construction of Terminals 4 and 5;
• rollout of biometric processing systems soon.

“Modernizing a decades-old, over-capacity airport simply cannot be done overnight,” NNIC said.

Fee hike ‘still among lowest in region’

NNIC said the new passenger service charges—P950 for international and P390 for domestic flights—remain below inflation-adjusted 2000 levels and are among the lowest in Southeast Asia.

The government approved the adjustments after review by the ADB. “Keeping outdated rates for 25 years crippled NAIA’s ability to invest in maintenance and service improvements,” it said.

Transparency and public benefit

The firm denied claims that it violated transparency rules or that the PPP favored any conglomerate. The Independent Consultant required under the contract “is being finalized” through government procurement.

NNIC said the public stands to gain the most, with P57 billion already remitted to government in the first year and an estimated P911 billion over the 25-year concession.

“This arrangement protects taxpayers while modernizing NAIA using private funding,” it said. — Edited by Daxim L. Lucas