Rehabilitating the Ninoy Aquino International Airport, or NAIA, would help boost government revenues and make the lives of those using its terminals easier, President Ferdinand Marcos Jr. said yesterday.

Marcos described the P170.6-billion NAIA modernization project under a public-private partnership as a “fairly major catch-up plan.”

“This undertaking is not just about revenues that will be remitted to the treasury alone, but resources invested in the airport and in many ways, it is an investment in our future,” Marcos said.

He also acknowledged longstanding issues that have plagued the airport for nearly a decade, including its operating beyond its capacity, the logistical challenges, and infrastructure deficiencies.

A holistic approach encompassing the rehabilitation of the passenger terminals, airside facilities, commercial assets, utility systems, and the provision of inter-modal transport facilities is needed, Marcos stressed.

Passenger comfort and experience is paramount, he added, in trying to nearly double its handling capacity each year from 35 million to 62 million.

The initiative is projected to yield around P900 billion in revenue for the national government over the course of its 25-year concession, equating to an annual sum of about P36 billion.

President Marcos said the project would also attract approximately P88 billion in capital investments within the initial six years of its operation, a figure eight times the capital investment allocated to the Manila International Airport since 2010.

Furthermore, the private sector is expected to remit approximately P1.052 trillion to the government over 15 years, with an additional 10-year period thereafter.

Marcos lamented the tarnished reputation of the airport, attributing its decline not only to negative press but also to its state of disrepair.

“The gateway that should be the red carpet to our country has become a dirty rug that unfairly defines a visitor’s first impression,” Marcos said.

He highlighted the economic repercussions of the airport’s shortcomings, citing delayed and reduced flights resulting in diminished visitor arrivals and substantial losses in tourism revenues.

“It also affects our economy greatly,” the President said. “The postponed improvement of the airport has resulted in delayed and reduced numbers of flights.”

The concession agreement between San Miguel Corp. (SMC-SAP & Co., renamed New NAIA Infrastructure Corp.) and the national government for the rehabilitation of NAIA was formally signed on Monday.

The agreement was inked by Department of Transportation Secretary Jaime Bautista, MIAA general manager Eric Jose Ines and SMC president and chief executive officer Ramon Ang.

Ines stated that modernizing the NAIA, considered one of the worst airports in the world, requires massive funding that the MIAA doesn’t have.

The New NAIA Infrastructure Corp. said it is planning to transform the nearby Philippine Village Hotel compound into a new passenger terminal to further decongest NAIA.

In a press conference, Ang disclosed that the new terminal aims to serve 35 million passengers annually, which could free up about 30 percent of space across the three NAIA terminals presently serving international flights.

Ang said the new structure will have a car park with a capacity of 9,000 vehicles. “These terminals could soon handle 35 million passengers per year with a concourse and with 50, target-to-build, boarding bridges,” he added.

Once completed, Ang said all the offices in the existing NAIA terminals will be relocated to the new passenger terminal building.

According to Ang, once the government approves the plan, the consortium is ready to start the new building, which could take at least three years to build.

The New NAIA Infrastructure Corp. will operate, maintain, and rehabilitate the NAIA. Depending on its performance, it has the option to extend the 15-year deal for another 10 years.

The consortium is composed of diversified conglomerates SMC, Rmm Asian Logistics Inc., Rlw Aviation Development Inc., and Incheon International Airport Corp., the developer of the world-class South Korean air hub.

Under the NAIA PPP, the consortium will rehabilitate and upgrade the passenger terminals, commercial assets, and surface access facilities, and modernize the communications, navigation, and surveillance systems of the airport.

It will also provide a connection at Terminal 3 to the Metro Manila Subway, deploy buses for boarding transfers, and improve the baggage handling systems.

The turnover of operations to the private sector will take place in September, provided the original timeline is followed.

Amid questions on project financing, Ang assured that the group has sufficient funds to bankroll the rehabilitation, maintenance, and operation of the airport.

According to him, the Sy-led BDO Unibank Inc., along with other local banks, had committed to finance the NAIA PPP Project.