The consortium headed by San Miguel Corporation, known as SMC-SAP and Company Consortium, has been awarded the contract to rehabilitate the Ninoy Aquino International Airport (NAIA), announced on February 16. After emerging as the frontrunner with the highest bid just days before, the consortium will now manage NAIA for 15 years, with an option to extend for another 10 years.
This agreement mandates San Miguel’s group to upgrade and maintain the airport, including its runways, four terminals, and additional facilities. Moreover, the consortium agrees to share 82.16% of its gross revenue with the government, alongside an initial payment of P30 billion and an annual P2 billion thereafter.
This development marks another significant venture into the aviation sector for Ramon Ang’s conglomerate, following their acquisition of the New Manila International Airport project in Bulacan in late 2020. Despite previous ownership limitations that could have hindered San Miguel’s bid for NAIA, the government’s relaxation of these restrictions facilitated the consortium’s successful bid.
The bidding process saw intense competition among three major consortiums, with SMC-SAP and Company Consortium offering the highest revenue share to the government. The selection of San Miguel’s bid raises questions about the operational profitability of NAIA under such generous terms and the qualifications of some consortium members, given their recent formation and limited capital.