The concession agreement between San Miguel Corp. and the national government for the rehabilitation of Ninoy Aquino International Airport (NAIA) was formally signed on Monday. 

According to the Manila International Airport Authority (MIAA), in order to improve the airport's overall services and infrastructure, increase its yearly passenger capacity from 35 million to 62 million, and increase tourism arrivals, this deal gives the New NAIA Infra Corp. a 25-year concession to rehabilitate and enhance the airport's operation.

The airport authority added that it is anticipated that the government will receive about PHP 36 billion annually from the privatization of NAIA during the concession's 25-year period. The PHP 2 billion yearly fixed annuity payment, the PHP 30 billion upfront payment from the San Miguel Group, and the 82.16% government share are all included in this sum.

MIAA General Manager Eric Jose Ines stated that rehabilitating NAIA, which is currently considered one of the worst airports in the world, requires a massive budget that the MIAA doesn't have. 

The airport chief clarified that their budget is insufficient because they need to remit a percentage of their revenue to the National Treasury. 

GM Ines expects increased rates for NAIA concessionaires, which are still being finalized. He also revealed that discussions with the SMC-led group are still ongoing, including the decision about whether the airline plans to introduce a flight via NAIA. 

The SMC's chief executive, Ramon Ang, claims that their goals for NAIA extend beyond simple renovation. They have put together a team of specialists with its partner, Incheon, who are committed to putting immediate improvements into place in order to support them in achieving their long-term objective for NAIA. 

Transport Secretary Jaime Bautista mentioned that the NAIA Public-Private Partnership Project (PPP) sends a strong signal to the international business community about the viability of government infrastructure projects. 

However, he also emphasized that this radical transformation comes at no small price, and substantial investments in infrastructure and technology will necessitate collaborations with local and foreign partners.