Total financing, amounting to P116.2 billion ($2 billion), stands out for its innovative financing structure and its transformative impact on Southeast Asia’s transport landscape, said PFI, a leading source of data and analysis on the global financing industry.
The winning consortium comprises San Miguel Holdings Corp (33 percent), RMM Asia Logistics, RLW Aviation Development, and Incheon Airports.
Led by billionaire Ramon S. Ang, SMC is one of the country’s largest conglomerates with a portfolio that spans food, drinks, power, and infrastructure.
PH banks recognized
The 15-year project finance loan includes a P28-billion upfront payment and a P52-billion capital expenditure facility for construction and renovations. Local banks “overwhelmingly” supported the project finance debt, leaving no room for international or multilateral lenders.
BDO Capital served as the lead arranger, with lenders including BDO Unibank, Bank of Commerce, Asia United Bank, China Banking Corp, Security Bank, and Development Bank of the Philippines.
The borrower’s legal counsel is Picazo Buyco Tan Fider & Santos, while lenders are advised by SyCip Salazar Hernandez & Gatmaitan and Lee & Ko (Korean counsel). The Department of Transportation engaged the Asian Development Bank as its transaction adviser, supported by PwC, Pinsent Masons, and PJS Law.
Major PPP
The public-private partnership project was successfully launched in collaboration with the DOTr.
“The project is of great significance to the Philippines,” according to PFI.
“The airport is overused and overwhelmingly exceeds its capacity, thus rehabilitation and expansion is much needed. This project is possibly the largest brownfield airport PPP project launched anywhere in the world at the time of its launch,” it added.
NAIA upgrades on the way
The NAIA project includes terminal expansions to increase passenger capacity from 47 million to 62 million annually, along with upgrades to airside infrastructure and air traffic control systems. Sustainability is a key focus, with plans to integrate solar panels, energy-efficient systems, and rainwater harvesting. At least 20 percent of the airport’s energy needs will come from renewable sources.
DOTr welcomes award
“The recognition underscores the landmark collaboration between the DOTr and the San Miguel-led New NAIA Infra Corp (NNIC), which has undertaken one of the most ambitious and impactful airport rehabilitation efforts in Southeast Asia and globally,” the Transportation department said.
“The DOTr, under the leadership of Secretary Jaime J. Bautista, has been collaborating with the private sector to bankroll big-ticket infrastructures that are seen to provide a world-class and improved travel experience for all,” it added.
