The Department of Transportation (DOTr) is finalizing an administrative order (AO) to increase airport charges at Ninoy Aquino International Airport (NAIA) before the government hands over the management of the main gateway to the private sector.
“It’s still undergoing review by our regulator. We expect to issue the AO before the handover,” DOTr Undersecretary for planning and project development Timothy John Batan said.
Batan said the DOTr expects to turn over the operations and maintenance (O&M) of NAIA to New NAIA Infrastructure Corp. (formerly SMC SAP & Co. Consortium) by Sept. 14, 2024.
Transportation Secretary Jaime Bautista earlier said airport charges, which include landing and take-off as well as parking fees, are expected to increase to recover the investments made by San Miguel Group, the new concessionaire of NAIA.
San Miguel Group earlier said it is mobilizing at least P88 billion in capital investments within the first six years and at least P122.3 billion in capital investments for its entire 25-year concession period.
The government expects to generate P900 billion in revenues in the course of the entire 25-year concession period, inclusive of the P30 billion upfront payment, P2 billion annual payment and 82 percent government revenue share.
NNIC in March 2024 signed the P170.6-billion contract to operate, maintain and upgrade NAIA for 15 years, extendible for another 10 years.
Meanwhile, a consumer group called on the government and the winning airport rehabilitation consortium to improve airport facilities and services first, before increasing the airport fees.
Bantay Konsyumer, Kalsada at Kuryente (BK3) secretary-general Patrick Climaco said in a statement the privatization of the NAIA was supposed to help the government fund the airport’s rehabilitation project.
“Our airport serves as the face of the country to the world. Due to the problems in NAIA, the government opted to do Public-Private Partnership to solicit help from the private sector in funding the rehabilitation and improvement of quality of facilities and services in NAIA,” Climaco said.
“However, instead of achieving this good objective, it seems that the interest of the private group, which won the contract, is being prioritized rather than the benefits the public should receive from this project. The people have yet to experience the improvements in NAIA but they are already asked to abruptly pay unconscionable airport fees increase,” Climaco said.
