With an investment of P144 billion, can Ang and partners really modernize the airport often listed as “the worst in the world”?
New NAIA Infrastructure Corp. (NNIC) general manager Angelito Alvarez said at the simple turnover rights early Saturday morning, “Minimizing the distractions, improvements will begin immediately in tangible changes that passengers will feel by Christmas. That’s the commitment of our Chairman [Ang]. By Christmas you will see significant improvements.”
Media has reported over the years of airport security staff stealing from foreign tourists, bribes demanded by customs personnel to allow passengers to bring in personal possessions such as pets, and immigration staff escorting VIP guests with questionable papers, to name a few.
During the recent Economic Journalists Association of the Philippines-San Miguel Corp. Aviation Forum, Alvarez said, among the “quick improvements” that will be felt within three to 12 months are new toilets and refurbishment of existing ones; additional seating capacity at the passenger terminals; installation of new airconditioning units and refurbishment of existing units; reliable high-speed Internet; additional backup generators and UPS units; repair of walkalators, escalators, and elevators; to name a few.
There will be terminal reassignments, for sure, but that won’t happen immediately, as local carriers such as Cebu Pacific and Air Asia Philippines, pressed for more consultations before said move is finalized. “It will be a gradual process,” the NNIC GM stressed.
Prayers for corrupt gov’t personnel
To solve the frequent power outages mainly affecting NAIA-terminal 3, a new power substation will be built as per agreement between Ang’s group and Meralco, led by business mogul Manuel V. Pangilinan.
“The new power substation will be built, but that will take about two years to be completed. For the time being, we have engaged the services of consultants [to] review the existing electrical installations…. To ensure power reliability, we will be in investing in additional gen-sets,” said Alvarez.
Asked how they will address the many complaints against government agencies whose corrupt personnel make traveling through the NAIA a huge headache, NNIC president Ang said, perhaps, half in jest: “Ipagdadasal ko na lang sila (I will just pray for them).”
But Alvarez expressed confidence that these government agencies, such as the Bureau of Immigration, Bureau of Customs, Office of Transportation Security (OTS), among others, are on board with the improvements NNIC will be making at the airport. “The confidence is very high… that they [government agencies] will be very cooperative in the significant improvements [we will implement] in the days and months to come.”
Media has reported over the years of airport security staff stealing from foreign tourists, bribes demanded by customs personnel to allow passengers to bring in personal possessions such as pets, and immigration staff escorting VIP guests with questionable papers, to name a few.
Alvarez said improved inspection processes and technological upgrades will enhance the passenger experience. For instance, “The X-ray inspection will be done right after the passengers get their baggage from the carousel, similar to what is happening in Japan, Hong Kong, Malaysia and other countries.” With the installation of new electronic gates, “I think the interaction with Immigration officials will be somewhat reduced.”
Higher terminal fees next year
Because of these immediate improvements, the passenger terminal fee, currently at P550 for international flights and P200 for domestic trips, will be increased next year. “Based on the Administrative Order that was recently signed, the implementation in the terminal fee will only take effect after one year. The concession agreement [between NNIC and the government],” said Alvarez. He underscored the importance of collecting a higher terminal fee: “That is really very important, because remember, 82 percent of the revenues under the passenger service charge will go to the government,” as the latter invited the private sector to make a significant investment in the project.
Under the Manila International Airport Authority (MIAA) Revised Administrative Order 1, Series of 2024, the passenger service charge will be raised to P950 (international) and P390 (domestic) in October 2025. Any new adjustments in the fees will be made in the seventh and 12th year of the NNIC’s management. If the company’s management contract is extended after the 15th year, the terminal fees can again be increased in the 17th and 22nd year.
In a news statement following the turnover rites, Transportation Secretary Jaime J. Bautista wished the NNIC success in its plans. “Today, we are finally doing what the government has wanted to do since the 1990s—to use public-private partnership (PPP) in enabling a private operator to manage the operations and maintenance of NAIA and make it truly world-class. We wish NNIC much success,” he said.
P144B investment by Ang’s group
Meanwhile, Ang expressed his gratitude and excitement in modernizing the Manila airport, stressing that it was an investment in the country’s future.
“A world-class airport means more jobs, more tourists, and a stronger and more prosperous Philippines. NAIA is the first place travelers get [an impression] of our country and we want the world to see its beauty and the incredible potential of the Filipino people. Let’s take pride in what we accomplished so far and everything we will accomplish together moving forward,” he said.
For his part, MIAA General Manager Eric Jose C. Ines assured NNIC of his agency’s full support and cooperation as the company takes over NAIA operations. About 500 MIAA employees will be transferring to the private company, while the rest have opted to retire.
NNIC, a joint venture between San Miguel Holdings Corp. RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp., bested two other companies in a public bidding in February for the NAIA modernization project, offering the largest revenue share to the government at 82.16 percent share. NNIC will invest some P144 billion in modernizing the airport complex, which will also include the construction of an extension of NAIA-Terminal 2 on the property, where the decrepit Philippine Village Hotel currently stands.
