(UPDATE) A CONSORTIUM led by tycoon Ramon Ang has won the contract to modernize the Ninoy Aquino International Airport (NAIA), the Department of Transportation (DoTr) announced on Friday.

The SMC SAP & Co. Consortium will have 15 years to upgrade, expand and operate the country's premier airport, with the possibility of a 10-year extension.

The group bested three other bidders, DoTr Secretary Jaime Bautista said during a briefing.

The consortium is made up of San Miguel Holdings Corp., local companies RLW Aviation Development Inc. and RMM Asian Logistics Inc., and Korean airport operator Incheon International Airport Corp.

The DoTr said the consortium will roll out at least P88 billion in capital investments within its first six years, or around P14.67 billion per year, and at least P122.30 billion during its 25-year concession period.

In comparison, the total capital outlay for NAIA, based on the Manila International Airport Authority's (MIAA) corporate operating budget from 2010 to 2023, was P37.09 billion (P2.08 billion per year).

The DoTr said SMC SAP will pay the government P30 billion upfront and P2 billion annually.

It is also offering the government an 82 percent share for the whole concession period.

The DoTr said the NAIA public-private partnership is expected to generate P900 billion (P36 billion per year).

DoTr Undersecretary Timothy John Batan said he expected a concession agreement to be signed in the next 30 days.

The rehabilitation of the airport has been going on for the last three decades and has spanned six administrations, starting with that of president Fidel V. Ramos.

The consortium thanked the DoTr "for conducting a fair and comprehensive bidding process," and commended President Marcos Jr.'s administration "for its commitment to modernizing NAIA."

It said it is "committed to collaborating closely with the government and our various stakeholders, harnessing every resource available to us, to transform NAIA into a modern international gateway that Filipinos will be proud of."

Finance Secretary Ralph Recto on Friday welcomed the MIAA board's decision to bid out the rehabilitation of NAIA, which is the biggest public-private partnership (PPP) project under the Marcos administration.

Recto said the airport has been operating beyond capacity for nine years, leading to poor service and passenger inconvenience.

The project will address issues such as undercapacity, congestion and underinvestment in the country's primary gateway.

The Department of Finance's Privatization and Corporate Affairs Group (PCAG) evaluates PPP proposals before presenting them to the Investment Coordination Committee (ICC) and to the National Economic and Development Authority (NEDA).

The NAIA project got the NEDA board's nod on July 19 last year in just six weeks, the fastest approval in Philippine history.

Bautista also said that renaming NAIA was not a requirement by the DoTr from the bidders.

He said, however, he would have to consult with the DoTr legal department if SMC-SAP is allowed to change the airport's name.

The airport, originally known as the Manila International Airport, was named after former Sen. Benigno "Ninoy" Aquino Jr. who was assassinated at the tarmac upon his return to the country from the United States.

Batan said the NAIA project took a year before it was completed.

The process started with the signing of a transaction advisory services agreement with the Asian Development Bank (ADB) on Feb. 2, 2023, followed by NEDA's approval of requirements.

In August 2023, the invitation to bid for the rehabilitation of NAIA was released.

"We really worked hard to see to it that these are implemented in the fastest possible time because we think that this is a very important project," said Bautista.

Once NAIA is privatized, MIAA will become a regulatory body, and its employees will be offered to work with the new operator.

Two congressmen are upbeat on NAIA's future now that the San Miguel group has taken over its rehabilitation and operations.

Albay Rep. Jose Maria Clemente "Joey" Salceda believes the bid by the San Miguel-SAP consortium is the "best deal" out of the biggest public-private partnerships in the country.

"The SMC proposal offered an eye-popping 82.6 percent government share out of airport revenues, not to mention an upfront outright payment of at least P30 billion to the government," Salceda, the chairman of the House Committee on Ways and Means, said.

He urged the group to commit to the immediate improvements to the airport once they take over in September, which include the installation of walkalators across Terminal 3, the interconnection of the three terminals, and better lounge facilities for overseas Filipino workers.

Salceda believes that the 82.6 percent government share in airport revenues offered by the consortium makes it an "excellent deal" for the government months after the enactment of the PPP code.

House Deputy Minority Leader and Bagong Henerasyon Party-list Rep. Bernadette Herrera-Dy said she was "cautiously optimistic" of the deal and urged the consortium to make sure all NAIA clientele will be accorded "respect, fairness, and world-class standards of service,"

"The contract was awarded because the government wants to fix the long-broken system at NAIA. Public patience has been worn thin. The new management should understand that the public and Congress will not have reasonable but thin tolerance for mismanagement, mishaps, and mayhem," Herrera-Dy said.

She said she is open to any reasonable increases in airport fees as long as travelers will see the value and feel the improvements in services, courtesy, client experience, and less corruption at NAIA.

Sen. Mary Grace Poe, chairman of the Senate Committee on Public Services, said the winning bidder faces a herculean task of giving the decades-old structure crucial expansion and modernization so it could graduate from the list of the world's most infamous airports.

"We trust that the DoTr will continue to ensure efficiency and transparency every step of the way in this monumental development project," Poe said.

"The success of this rehabilitation will not only give the Filipinos safety and convenience but pride in welcoming the world with a world-class gateway," she said.

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