‘Ramon Ang will deliver’
The signing of the documents turning over to the group of San Miguel Corp. the management and modernization of state-run Ninoy Aquino International Airport took only 40 seconds last March 18 at the presidential palace.
But the contract will change the tempo and direction of tourism, aviation and, indeed, the Philippine economy, over the next quarter century. Aviation contributes 5 percent to 17 percent of GDP.
Forty seconds for 25 years of unprecedented boom in travel with what can be the best gateway there is in this part of earth, NAIA. From the world’s worst airport to the world’s best. That is the dream of most Filipinos.
Last Tuesday, in Malacañang, three men of vision in aviation signed the public-private deal for San Miguel’s takeover of NAIA from the government: SMC president and CEO Ramon S. Ang (RSA) for the New NAIA InfraCorp., Transportation Secretary Jaime Bautista and GM Eric Jose Castro Ines of the Manila International Airport Authority, the NAIA manager.
Bagging the largest and fastest-gestation PPP deal, RSA offered what could be a large corporation’s fortune for life, P1.052 trillion – P911 billion as the state’s share of airport revenues over 25 years, plus P141 billion in airport physical improvements. Immediately, SMC must pay P30 billion down, plus P2 billion annuity every year for 25 years, or P50 billion, for a total of P80 billion, in cash. The P911 billion, reckons RSA, “is nearly 9x the benefit offered by the previous unsolicited proposal.”
In 2020, a consortium of six powerful conglomerates, the Manila International Airport Consortium (MIAC), offered to rehab MIA for just P102.1 billion. DOTr chief Bautista rejected that bid and instead conducted an open, transparent auction, which SMC won.
Can RSA give away so much money (P1.052 trillion) just to inherit a highly rated (for being the worst) airport in the world? Crowds of cynics erupted in jeers. Not President Marcos. “Ramon Ang promises he will fix this problem once and for all. And if his record is anything to go by, I’m fairly confident that he will manage to – by hook or by crook, ayan naman si Ramon, by hook or by crook gagawin
niya’t gagawin niya,” the President enthused. BBM had no choice but feel confident. He explained in his speech:
“Because after more than 30 years, the comprehensive modernization of Manila International Airport in partnership with the private sector finally is taking off. Bureaucratic inertia; political turbulence; legal wranglings – these are among the things that conspired to maroon the international airport rehabilitation on the tarmac of inaction. The nation has unfortunately paid a heavy price for that indecision.
“The reputation of this airport has been shredded, and let us be frank about it, not by bad press, by its actual poor state.
“The gateway that should be the red carpet to our country has become a dirty rug that unfairly defined a visitor’s first impression, which we all know is extremely important for all of those who are tourists, who are travelers, who… for any reason have come to the Philippines.”
Last March 18, thus, BBM said, “we chart the future of the airport,” signalling “departure honors” for the old NAIA.
BBM’s marching orders to SMC: passengers must whiz out of NAIA in 20 minutes, just like in Singapore. Aircraft movements, taking off and landing, must increase from 40-42 an hour, to 48. Passenger capacity must almost double, from 35 million to 62 million.
Restoration, the President said, “requires major overhaul such as the rehabilitation of the passenger [terminals], the airside facilities, the development of commercial assets and utility systems, the provision of inter-modal and inter-terminal transport facilities.” RSA is prepared for the challenges. NAIA modernization’s impact, the SMC CEO stressed, “goes beyond financial gains, promising to boost the economy and improve the lives of countless Filipinos. Our vision for NAIA extends beyond mere rehabilitation. We aim to significantly enhance its functionality and establish a new standard in service excellence.”
RSA assured: “Together with our partner Incheon, we have assembled a team of experts focused on implementing immediate improvement and helping us achieve our comprehensive long-term goal for NAIA. This approach ensures the current user will enjoy an enhanced experience, even as we lay the groundwork for the future.
“Within six months from September 2024, we aim to elevate your airport experience through a streamlined process, faster check-ins and upgraded amenities for greater comfort and convenience,” Ramon Ang vowed, adding:
“We will establish additional dedicated facilities for our overseas workers in honor of their significant contribution to the country. Our goal is to increase the airport’s capacity by enhancing runway-taxiway efficiency (2:17) and reducing travel time to and from the airport. These efforts are part of the broader commitment to transport NAIA efficiency, increase its handling capacity and raise the standard of service.
“Our ultimate goal is to provide an exceptional travel experience for every passenger at every touchpoint. In partnership with the government, we are committed to serving the wider public interest and realizing the long-cherished dream of many Filipinos to finally have a NAIA that we can all be proud of.”
For his part, Bautista said NAIA’s “achieving internationally benchmarked standards should cascade to passengers and airport users. This radical transformation comes at no small price. Substantial investments in infrastructure and technology will necessitate collaborations with local and foreign partners.”
The transport czar said: “New NAIA InfraCorp. has a wide network of financing sources to support its vision for this airport. The NAIA privatization sends a strong message to the international business community on the viability of the government’s transport infrastructure projects.”
After NAIA, Jimmy disclosed, Bohol’s Panglao International Airport will be privatized next.
In fact, BBM has lined up 185 major infra projects for PPP. Their value: P9.3 trillion. Small change.
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