Transportation Secretary Backs PPP Deal at Ninoy Aquino International Airport
Transportation Secretary Vince Dizon firmly defended the public-private partnership (PPP) deal between the government and San Miguel Corp. (SMC) concerning the Ninoy Aquino International Airport (Naia). This comes amid ongoing petitions before the Supreme Court seeking to nullify the agreement.
“We have seen the benefits of the PPP. The services have improved, lines became shorter, the experience of our citizens and tourists was better. It’s not yet perfect as it hasn’t been a year since San Miguel took over, but the management of the airport has really improved,” Dizon said during an impromptu interview. “I think in the coming months, it will be even better,” he added.
Government Supports Concession Agreement with Transparency
Dizon emphasized that the government remains fully supportive of the concession agreement with SMC. He highlighted that the process was transparent and closely supervised by the Asian Development Bank. “The complaints are already with the court, so let’s just let it be processed, but the DOTr and the government will stand by the PPP deal on Naia,” he said.
San Miguel-Led Consortium Takes Over Naia Management
In September last year, New Naia Infra Corp. (NNIC), a consortium composed of San Miguel Corp. and Incheon International Airport Corp., assumed management and operations of Naia. The group committed to investing P170 billion to modernize the country’s primary air gateway.
According to NNIC, significant improvements have been made since the takeover. These include upgrades to restrooms, air-conditioning systems, elevators and escalators, as well as enhanced internet connectivity and CCTV coverage. Seating areas, lounges, parking, and transport facilities have also been improved.
Furthermore, NNIC has started preparations for constructing new airport terminals to boost Naia’s overall capacity, aiming to accommodate increasing passenger volumes efficiently.
Airport Fee Hikes Linked to Service Enhancements
The concession agreement has been accompanied by increases in airport fees. Starting September this year, terminal fees for domestic travelers will rise from P200 to P390, while international travelers will see fees increase from P550 to P950.
NNIC stressed that these fee adjustments will directly fund airport operations and passenger service improvements. The increases were approved by the Department of Transportation and established under Administrative Order No. 1, Series of 2024, issued by the Manila International Airport Authority (MIAA).
Legal Challenges Question PPP Deal and Fee Adjustments
Last April, a group of petitioners including lawyers Joel Butuyan, Ma. Soledad Derequito-Mawis, Antonio Gabriel La Viña, Roger Rayel, and Jose Mari Benjamin Francisco Tirol urged the Supreme Court to nullify both the MIAA administrative order and the Naia PPP agreement.
The petitioners criticized the deal as one that was “never designed with the common good or public welfare in mind.” They also argued that the bidding process failed to comply with the new PPP code enacted on December 5, 2023.
Additionally, the lawyers claimed the concession agreement violated their right to procedural due process, citing a lack of “genuine and meaningful public participation.”
Nonprofit Groups Join Calls for Nullification
Several nonprofit organizations, including Samahang Manggagawa sa Paliparan ng Pilipinas, Freedom From Debt Coalition, and OFW Wellness Association Inc., alongside current and former airport employees and concerned citizens, have also petitioned the Supreme Court to void both the concession agreement and the administrative order.
They argued that these measures were implemented “without genuine public consultation,” raising concerns about transparency and inclusivity in decision-making processes related to the airport’s management and fee structures.
For more news and updates on Ninoy Aquino International Airport, visit Filipinokami.com.
