As a movie dialogue goes, if you build it, they will come.
But the more apt saying on the successful bid of San Miguel Corp. president/CEO Ramon S. Ang for the rehabilitation of the Ninoy Aquino International Airport (NAIA), which was more beneficial to the government, is if you bid right, other investors will come.
Thus reported the Philippine Star on Wednesday, February 21, quoting Ang saying that more investors are interested in funding NAIA, including those that did not win the bid for its rehabilitation.
NAIA will be rehabilitated by the San Miguel Consortium for P170.6 billion to operate, maintain and rehabilitate the country’s main gateway.
The consortium is composed of San Miguel Holdings, RMM Asian Logistics (a company owned by Raymond Miller Moreno), RLW Aviation Development (owned by Robert Lee Wong) and Incheon International Airport Corp. of South Korea.
The consortium’s bid proposed giving 82.1 percent of NAIA’s revenue to the government and increasing NAIA’s annual passenger capacity from 32 to 60 million.
The initial contract will be for 15 years beginning the second half of 2024 and extended for another 10 years. The deal will generate P900 billion in revenues for the government throughout 15 years, according to Esquire.
Aside from NAIA, San Miguel is also building an alternate airport, the New Manila International Airport, in Bulacan.
Star Business editor Iris Cecilia Gonzales reported Ang saying he is keeping the funding runway open for other investors.
“We are open to partnerships to share the blessing,” Ang said.
The Star earlier reported that the newly-created Maharlika Investment Corp., the country’s first sovereign wealth fund, wants a piece of the action under the P40-billion investment fund it allocated this year.
MIC, Ang said, expressed interest in investing in NAIA rehab.
Also, tycoons Lucio Co and Jeffrey Cheng, who also bidded for the project, wants to take part in the project– regarded as the largest solicited PPP (public private partnership) under the Marcos administration.
“It’s a good investment that’s why Lucio Co and Jeff Cheng (partners in Asian Airport Consortium in bidding for NAIA which failed to hurdle the review of the Pre-Qualification Bids and Awards Committee) want to join,” Ang told the Star.
AAC offered the second highest bid with a revenue sharing of 75 percent while GMR Airports proposed a share of 33.3 percent; the Manila International Airport Consortium offered 25.91 percent, SMC-SAP &Co. Consortium proposed a revenue sharing of 82.16 percent.
Maharlika president/CEO Rafael Consing Jr. said MIC is willing to invest what SMC would need for financing and that this would contribute to the development of the country.
Consing said they are participating in NAIA rehab as this is one of the best for Maharlika as it would also boost the credibility of the sovereign wealth fund.
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