Recto: Gov’t blitzed airport PPP approval

The Department of Finance has revealed that the government’s evaluation of the Ninoy Aquino International Airport modernization and expansion project took only six weeks prior to President Ferdinand Marcos Jr. approving it on 19 July 2023.

“The NAIA PPP project sets the benchmark for efficiency for the government’s pipeline projects, being the fastest-approved PPP proposal in Philippine history,” Finance Secretary Ralph Recto said.

Recto said the process for more public-private partnership or PPP projects will be accelerated.

The government has lined up over 100 infrastructure flagship projects that are open for PPP and cover land and sea transport, water and energy supply, and education and health.

As of 7 February, the PPP Center said there were 117 projects being worked out.

With the new NAIA, Recto expects more tourists flocking to the country, resulting in more tourism jobs that could employ more than 11.4 percent of the country’s total workforce.

Under the contract, 82.16 percent of future gross revenues from the airport operations, excluding passenger service fees, will be shared with the government.

“This means that the government is assured a healthy income stream from the private sector operator amounting to P36 billion annually to fund expanded social services in education, public health, and infrastructure,” Recto said.

“If we act with the same dispatch on all public projects, I am confident that we can sustain the momentum of growth necessary to deliver an inclusive economy for our people,” he added.

Transportation Secretary Jaime Bautista, MIAA General Manager Eric Jose Ines, and San Miguel Corporation president and chief executive officer Ramon Ang signed the PPP agreement.