SMC wins bid for P170.6-billion Naia rehabilitation project

The consortium led by San Miguel Corp. (SMC) won the bidding for the P170.6-billion Ninoy Aquino International Airport (Naia) rehabilitation project, Transport Secretary Jaime Bautista announces on Friday, February 16, 2024. INQUIRER FILES

MANILA, Philippines — The consortium led by San Miguel Corp. (SMC) won the bidding for the P170.6 billion Ninoy Aquino International Airport (Naia) rehabilitation project, Transport Secretary Jaime Bautista announced Friday.

“Today, we are pleased to announce that we will award this project to the winning bidder, the SMC-SAP group,” Bautista said in a press briefing.

The SMC SAP & Co. Consortium was the front-runner in the race for the highly coveted project as it proposed a revenue share with the government of 82.16 percent – more than double that offered by its two competitors.

READ: SMC leads race for Naia rehabilitation contract

Transportation Undersecretary Timothy John Batan pointed out that the entire project development process for this Public-Private Partnership (PPP) only took about 12 months.

“This process is one of – if not the fastest – solicited PPP project of the Philippine government,” Batan said during the press briefing.

Batan noted that the process officially began when the government signed a “transaction advisory services agreement” with the Asian Development Bank on February 2, 2023. This was followed by the National Economic and Development Authority’s approval of requirements such as feasibility studies.

The invitation to bid for the rehabilitation of the country’s main international gateway formally started in August 2023, according to Batan.

“We really worked hard to see to it that these are implemented the fastest possible time because we think that this is a very important project,” DOTr chief Bautista said of the swift process.

Bautista said the notice of award (NOA) was likewise issued to SMC SAP & Co. Consortium on Friday.

After the issuance of the NOA, the contract signing for the big-ticket infrastructure project is scheduled for next month, he added.

READ: Three groups qualify to bid for the P170.6-billion Naia contract

The SMC SAP & Co. Consortium beat the GMR consortium, which proposed a share of 33.3 percent, and the Manila International Airport Consortium, which proposed a share of 25.91 percent.

The Naia upgrade project includes the rehabilitation of passenger terminals and airside facilities such as runway, aircraft parking area and airfield lighting, and the provision of facilities that will enable intermodal transfers at the terminal.

The SMC SAP & Co. Consortium will have a 15-year concession period to implement the project, which can be extended by 10 years, if needed.