New NAIA Infra Corp. (NNIC), the private operator of the Ninoy Aquino International Airport (NAIA), seeks to proceed with the Philippine Village Hotel demolition to make way for a new passenger terminal.

NNIC general manager Angelito Alvarez told reporters last Friday that the company is working closely with government regulators and the Pasay City government to secure a demolition permit for the building.

“We want to start the demolition of the Philippine Village Hotel by early next year, but there are a lot of problems there. We are working with the LGU of Pasay to issue the demolition permit. They have seen the situation, and from the looks of it, they will issue it in the next few days,” Alvarez said.

The Philippine Village Hotel, once a notable landmark near the airport, has been closed for years and is now seen as a prime site for development. 

While the Manila International Airport Authority owns the land, the Nayong Pilipino Foundation has recently asserted a claim over it. The building itself is owned by a private company whose assets were foreclosed by the Government Service Insurance System.

Once demolition is approved, NNIC chairman Ramon S. Ang said the construction of the new terminal, to be called Terminal 5, could take up to four years.

22-M passengers yearly seen

The proposed terminal is expected to accommodate 22 million additional domestic passengers annually, easing congestion at the country’s busiest airport.

“We’re building 36 additional passenger bridges, and this expansion will accommodate an additional 22 million passengers per year. But of course, this depends on the government removing the Philippine Village Hotel,” Ang said. 

“We can call this Terminal 5, specifically for domestic flights. To complete this, it will take a minimum of three to four years,” he added.

Since assuming management of NAIA in September, NNIC has introduced several key measures to tackle airport congestion, aging infrastructure, and operational inefficiencies. These include the ongoing renovation of Terminal 4, which started on 6 November, and the reactivation of six wide-body passenger boarding bridges. 

NNIC has also optimized gate use at Terminal 3, with two swing gates now handling both domestic and international flights.

Additional improvements include the introduction of a “fly-to-gate” biometric system, faster internet connectivity, the clearing of 1,800 parking slots, and the expansion of road networks. 

Terminal curbside lanes are being widened, and in partnership with Meralco, NNIC is constructing a 115KV substation and installing a 6.12 MW uninterruptible power supply system at Terminal 3 to bolster power security.

By early 2025, NNIC plans to redistribute flights, with Terminal 3 focusing on international operations to alleviate congestion and optimize runway usage.

The company has allocated P1.58 billion in regular annuities and invested P420 million to support employee transitions.