SMC leads race in NAIA bidding

Offers highest revenue share for government

MANILA, Philippines —  Diversified conglomerate San Miguel Corp. (SMC) is leading the race for the contract to operate and maintain the Ninoy Aquino International Airport (NAIA), as it is willing to give the government the highest revenue share.

The Department of Transportation (DOTr) yesterday opened the financial bids submitted by the remaining groups vying for the 15-year concession to manage NAIA.

Based on the financial proposals, SMC SAP & Co. Consortium will remit to the government as much as 82.16 percent of revenue from NAIA operations if it bags the contract.

On the other hand, the GMR Airports Consortium submitted a proposed share of 33.3 percent, while the Manila International Airport Consortium (MIAC) offered 25.91 percent. As such, SMC SAP & Co. Consortium is ahead of the pack given the government’s premium for a higher share.

SMC president and CEO Ramon Ang said the company is prepared to take over the operations and maintenance of NAIA if it lands the contract. His commitment is that NAIA will be elevated to first-rate standards under SMC.

Ang also aired his desire to synergize NAIA with the airport being built by SMC in Bulacan. He said the two gateways should complement each other to reduce business costs and optimize flight schedules to the benefit of travelers.

Ang said SMC wants to create an integrated network of airports that can turn the Philippines into an investment and tourism hub in Southeast Asia.

Transportation Secretary Jaime Bautista said the DOTr would choose the proponent that will split the highest revenue share with the government. Whoever wins the project will also pay an upfront fee of P30 billion and annuity cost of P2 billion.

However, Transportation Undersecretary Timothy John Batan clarified that nothing is final as of now, as the DOTr is sticking to its timeline of issuing the notice of award on Feb. 14.

Batan also said the Pre-Qualification Bids and Awards Committee (PBAC), which he heads, is investigating the disputes filed by one of the bidders against another proponent.

To avoid any delay, Batan committed that the PBAC will resolve the issue before the scheduled award of the project on Feb. 14.

Transportation Undersecretary Roberto Lim confirmed that the Asian Airport Consortium, led by tycoon Lucio Co and businessman Jefferson Cheng, failed to hurdle the technical evaluation of PBAC, putting it out of the race even before it could present its financial offer to the government.

“Only three bidders’ technical proposals were complying with the terms of reference. The Asian Airport Consortium was determined as not complying, thus, only three bidders proceeded to the next stage of having their financial proposal opened by PBAC,” Lim said.

SMC SAP & Co. Consortium consists of San Miguel Holdings Corp., RMM Asian Logistics Inc, RLW Aviation Development Inc. and Incheon International Airport Corp.

San Miguel Holdings Corp. unit San Miguel Aerocity Inc. is developing the P735.6 billion New Manila International Airport in Bulacan, set to become the biggest gateway in the Philippines.

SMC’s international partner Incheon International Airport Corp. is responsible for running one of the best airports in the world according to Skytrax, Incheon International Airport.

Indian multinational GMR Group had worked with Megawide Construction Corp. in designing and building the Mactan-Cebu International Airport. GMR submitted its bid alongside Cavitex Holdings Inc. and Yuchengco-led House of Investments Inc., which are involved in the $11 billion effort to put up an airport in Cavite.

MIAC is composed of Aboitiz InfraCapital; AC Infrastructure Holdings Corp.; Alliance Global’s Infracorp Development Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; and JG Summit Infrastructure Holdings Corp. MIAC is led by New York-based Global Infrastructure Partners.

In 2023, MIAC made a P267-billion pitch to rehabilitate NAIA, but the DOTr rejected it to solicit fresh offers for the project.

The winning concessionaire for NAIA will be given 15 years, extendable by 10 years, to invest in projects that would improve the gateway.