NAIA rehab to boost government revenues by P900B — DoF

The P900-billion revenue expected from an improved NAIA is substantially much higher than the P22.05 billion total dividends remitted by MIAA to the government from 2010 to 2023, ‘certainly a welcome development for this long overdue project. NAIA has been operating beyond capacity for nine years, leading to poor service and passenger inconvenience.’

The government expects to gain revenues amounting to P900 billion from the rehabilitation of the Ninoy Aquino International Airport or NAIA.

The Department of Finance said this will consist of the P30 billion upfront payment, a fixed P2 billion annual payment, and a 82.16 percent national government revenue share that excludes passenger service charges.

The Manila International Airport Authority Board recently awarded the contract for the NAIA rehabilitation to a consortium consisting of San Miguel Holdings Corp., RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp.

Public-private partnership

The P170.6-billion project falls under the public-private partnership mechanism of the government and underwent bidding as part of its solicited proposal.

With this, the DoF said the consortium must fulfill the aforementioned payments during the entire concession period of 15 years with provision for an extension of another 10 years.

The DoF said the P900-billion revenue from improved NAIA is substantially much higher than the P22.05 billion in total dividends remitted by MIAA to the government from 2010 to 2023.

Welcome development

“This is certainly a welcome development for this long overdue project. NAIA has been operating beyond capacity for nine years, leading to poor service and passenger inconvenience,” DoF secretary Ralph Recto said.

The Department of Transportation said the concessionaire will start operating the improved NAIA in three to six months.

The DoF aims to grow national revenues by at least 15 percent starting this year.

‘The agency was the fourth highest dividend contributor to the national treasury in 2023 after the Bangko Sentral ng Pilipinas, the Philippine Deposit Insurance Corporation, and the Philippine Amusement and Gaming Corporation.’

PHOTOGRAPH COURTESY OF DOTR Accelerating Manila Subway Completion The Department of Transportation marked a significant milestone last 15 February 2024 with the signing of the Switching Station Agreement with Deeds of Usufruct between DoTr and the Manila Electric Company, facilitating the use of 1,743 square meters of its Valenzuela City railway depot for Meralco’s Switching Station. This station will energize the Valenzuela depot and propel the Metro Manila Subway Project forward. Shown in the photo during the signing of the agreement are (from left) DoTr Secretary Jaime Bautista; Ms. Charina P. Padua, Meralco first vice president and head of customer retail services; Rene Y. Sua, Meralco Head of National Government Accounts; and DoTr Undersecretary for Railways Jeremy Regino.