Gov’t collects P78 billion from private sector NAIA overhaul funding

The government has collected P78 billion from the privatized operations of Ninoy Aquino International Airport (NAIA) in less than two years, while private operator New NAIA Infra Corp. (NNIC) has shouldered another P6.8 billion to rehabilitate and modernize the country’s main gateway.

NNIC reported on Thursday that the P78 billion represents payments made to the government under the NAIA public-private partnership as of 15 August, providing the state with revenues while the private sector takes on the cost of running and upgrading the airport.

Under the concession agreement, the government receives a P30-billion upfront payment, a fixed P2-billion annual payment, and 82.16 percent of gross airport revenues covered by the revenue-sharing arrangement.

“This is what the concession was designed to do: generate substantial and continuing revenues for government that can help support public services and infrastructure, while bringing in private sector resources to improve the airport,” NNIC president Ramon S. Ang said.

NNIC’s NAIA takeover on 14 September 2024

NNIC, which took over NAIA on 14 September 2024, is responsible for operating, maintaining, and modernizing the airport.

The company has so far spent P6.8 billion on completed and ongoing repairs, rehabilitation, replacement of aging equipment, passenger processing systems, and capacity improvements under a broader multi-year modernization program.

“We have made significant progress in less than two years, but there is still a lot more work ahead. Our investments will continue as we modernize NAIA while keeping the airport fully operational,” Ang said.

Among the improvements completed since the takeover is the expansion and reconfiguration of terminal curbsides. Terminal 2 gained eight additional vehicle lanes, while Curbs C and D at the Terminal 1 arrivals extension were opened to provide more passenger pickup space and ease congestion.

Terminal 3 Ground Transportation Center

NNIC is also developing a Ground Transportation Center at Terminal 3 to consolidate and better organize transport services around the airport’s busiest terminal.

Parking systems at Terminals 1, 2 and 3 have been automated, while the operator has deployed more than 2,500 new baggage trolleys, 11,820 passenger seats and 20 new inter-terminal shuttle buses.

NNIC has also upgraded airport WiFi capacity and rehabilitated power and air-conditioning systems, elevators, escalators, walkalators, restrooms and baggage handling systems.

The modernization is increasingly moving toward automated passenger processing. A total of 517 biometric-enabled units have been deployed across the terminals for check-in, security and boarding.

NNIC also funded 78 new biometric immigration e-gates at Terminals 1 and 3, operated by the Bureau of Immigration.

The e-gates can process eligible travelers in about 20 seconds, helping raise passenger processing capacity during peak periods.

New North Wing Bus Gate at Terminal 2

At Terminal 2, a new North Wing Bus Gate is scheduled to open in mid-September to expand the terminal’s ability to handle flights parked at remote aircraft stands and make better use of available gate capacity.

New passenger boarding bridges have likewise been ordered to replace aging airport equipment, with installation being undertaken in phases while the terminals remain operational.

Likewise, NNIC has carried out flood mitigation work around NAIA, including the clearing of nearby waterways and drainage systems to improve water flow and reduce flood risks.

Operational changes have also included airline reassignments among terminals, the reconfiguration of aircraft parking and airside movements, and new performance agreements with airlines and ground service providers to establish clearer responsibilities and service standards.

Terminal 3 food hall restaurants, lounges

Passenger amenities have expanded as well, with more than 65 new restaurant and retail concepts opening in repurposed areas at Terminal 3, alongside new food halls and lounges. Similar improvements are underway at Terminals 1 and 2.

NNIC holds a 15-year PPP concession to operate, maintain, rehabilitate, and expand NAIA. The airport remains owned by the government throughout the concession period.