BCDA expects to raise P48 billion from sale of NAIA property

MANILA, Philippines — The Bases Conversion and Development Authority (BCDA) has signed an agreement with the Manila International Airport Authority (MIAA) for the disposition of the Ninoy Aquino International Airport (NAIA) Terminal 3 property valued at P48 billion.

In a social media post, the BCDA said a memorandum of agreement (MOA) was signed with the MIAA on Tuesday for the 61-hectare property.

BCDA officials led by chairperson Hilario Paredes, president and CEO Joshua Bingcang, executive vice president Gisela Kalalo and director Marvin Ponce de Leon attended the ceremony together with MIAA general manager Eric Jose Ines and senior assistant general manager Ma. Lourdes Reyes.

The MOA was signed following the expiration of the 25-year lease for the property in 2023.

Under the new agreement, an annual lease amounting to P489 million will be paid to the BCDA for the property, higher than the previous lease of P180 million.

It also gives MIAA a three-year option to purchase the property for P48.89 billion or to continue leasing it from the BCDA.

Should the MIAA decide to acquire the property, it will have full ownership of the land and infrastructure, paving the way for more investments to expand and modernize the airport.

“This would ultimately enhance its capacity to accommodate the growing demands of both domestic and international air travel,” the BCDA said.

Last year, Bingcang said the lease for the NAIA Terminal 3 property is expected to be a big revenue source for the state-run firm.

Under Republic Act 7227 or the Bases Conversion and Development Act, the agency is mandated to transform former military bases and properties into premier centers of economic growth in partnership with the private sector to generate funds.

The proceeds are remitted to the Bureau of the Treasury (BTr) to support the Armed Forces of the Philippines and other beneficiary agencies.

In April last year, the BCDA said it doubled its dividend remittance to the BTr to P1.1 billion from P527 million in 2023.

Since its inception in 1992, the BCDA has remitted almost P9.6 billion to the national government.