San Miguel Corporation’s revitalisation of Manila’s Ninoy Aquino International Airport (NAIA) stands among the most ambitious public-private partnership (PPP) projects in Philippine infrastructure history.
The initiative not only injects significant revenue into government coffers—over ₱52 billion to date—but is also set to deliver a raft of upgrades aimed at addressing decades-long issues of congestion, inefficiency, and underinvestment at the nation’s busiest gateway.
Background: San Miguel’s NAIA Concession
In September 2024, the San Miguel-led New NAIA Infrastructure Corp. (NNIC) took over NAIA’s operations and management after winning a landmark concession agreement through a competitive bidding process.
The PPP spans 15 years—extendable by another 10—establishing a collaboration between NNIC, the Department of Transportation (DOTr), and the Philippine government.
Key features of this concession include:
- ₱30 billion upfront payment to the government
- Fixed ₱2 billion annual payments
- 82.16% share of NAIA operational revenues remitted to the government (excluding passenger service charges)
- Over ₱144 billion earmarked for airport rehabilitation and expansions over the next several years
Financial Impact for Government
The NAIA revamp deal immediately boosted government finances with its record ₱30 billion upfront payment, quickly disbursed to the Bureau of the Treasury.
Within the first year, remittances from NNIC reached ₱52 billion—including annual fees, annuities, and revenue shares. By project end, total government receipts from this PPP are projected at ₱900 billion—around ₱36 billion annually, funding further investments in public health, education, and other national priorities.
This is one of the highest government revenue shares awarded in any major Philippine PPP, strongly increasing non-tax income without new levies on Filipinos.
NAIA Modernisation: What Flyers Can Expect
The NNIC’s blueprint for NAIA encompasses both immediate upgrades and a long-term transformation, promising a genuinely world-class airport by international standards.
Terminal Expansions and New Facilities
- Passenger capacity will rise from 35 million to 62 million annually upon completion.
- Terminal 2 will be expanded by 40%; Terminals 4 and 5 will be built to handle increased demand.
- The airport will feature state-of-the-art baggage handling, self-service check-in kiosks, biometric security screening, and 34 new boarding bridges to reduce airlines’ turnaround delays.
- Plans include expanded car parks, world-class retail and dining, and direct intermodal connectivity, notably linking NAIA with the Metro Manila subway system.
Safety and Security Upgrades
- Taxiways and runways are being upgraded, with capacity for air traffic movements rising from 40 to 48 flights per hour.
- Five advanced explosive detection systems and new security e-gates are being installed for baggage screening and faster, more secure passenger processing.
- Renovated surveillance and flight information display systems to keep flyers informed in real time.
Sustainability and Operational Efficiency
- At least 20% of the airport’s energy needs will be renewable, with solar panels, rainwater harvesting, and energy-efficient HVAC systems.
- Old facilities—such as baggage systems, sewage plants, and airfield lighting—will be replaced to support operational reliability and efficiency.
Passenger Experience
- Upgrades are designed to reduce congestion, long queues, and delays historically associated with NAIA.
- Passengers will benefit from improved seating, restrooms, air conditioning, retail variety, and accessibility enhancements.
- Smart systems will streamline check-in, security, and boarding for international and domestic travel.
Table: NAIA Revamp Financials and Key Features
| Item | Detail/Amount |
| Upfront Payment (to government) | ₱30 billion |
| Total 1st Year Remittance | ₱52 billion |
| Annual Fixed Payment | ₱2 billion |
| Government Revenue Share | 82.16% (excludes passenger charge) |
| Annual Government Revenue (Est.) | ₱36 billion (for 25 years) |
| Projected Total Revenue (25 yrs) | ₱900 billion |
| NNIC Investment Commitment | ₱144 billion |
| Passenger Capacity After Upgrade | 62 million per year |
| Current Terminal Fee (2025) | Domestic ₱390, International ₱950 |
| New Boarding Bridges | 34 units |
| Runway Movement Increase | 40 → 48 per hour |
| Renewable Energy Share | 20%+ |
Broader Economic Benefits and Future Outlook
The NAIA PPP and ongoing upgrades directly support Philippines’ ambitions to become a top business and tourism hub in Southeast Asia.
Surging passenger numbers and chronic underinvestment had made these improvements urgent—NAIA was recently ranked among Asia’s worst major airports.
The latest investment directly addresses capacity, comfort, connectivity, and reliability issues through infrastructure spending, advanced technology, and operational reforms.
The upgraded NAIA is expected to catalyse further economic growth by:
- Increasing business and tourism arrivals
- Enhancing connectivity with other Philippine and Southeast Asian airports
- Providing a sustained revenue stream for government projects, closing fiscal gaps, and funding health, education, and infrastructure
The Path Forward: Timeline and Continuing Projects
- Major renovations of critical passenger, baggage, and flight operations facilities are set to be completed between 2025 and 2027.
- The expansion of Terminals and upgrades to control towers, taxiways, and runways are already underway.
- By 2029, parallel investments by San Miguel in new airport infrastructure (in Bulacan) and connections to the Clark International Airport will further enhance wider Manila’s air travel landscape.
Modernisation in Context: Public-Private Partnership Excellence
The landmark NAIA deal has won national and regional recognition for innovation and effective revenue-sharing.
With NNIC’s ambitious capital expenditure plans (₱13 billion set for 2025 alone), government, travellers, and the Philippine economy are positioned to reap lasting rewards for decades to come.
Frequently Asked Questions (FAQs)
1. What is San Miguel’s role in the NAIA project?
San Miguel’s infrastructure subsidiary (NNIC) operates, maintains, and upgrades NAIA under a long-term PPP contract, with responsibility for major capital investments and delivering improved passenger experience.
2. How much will the government receive in total from the NAIA PPP?
By project completion, the government expects to receive up to ₱900 billion in revenue, including upfront payments, annual fees, and a majority share of operational revenues over a 25-year period.
3. What improvements can passengers expect at NAIA?
Flyers will benefit from larger terminals, faster check-in and security, improved baggage handling, expanded car parks, better amenities, and direct subway links.
4. How will these upgrades affect ticket prices or fees?
Terminal fees will rise for the first time in 20 years (to ₱950 international, ₱390 domestic), but NAIA remains competitively priced compared to regional airports.
5. When will all the major improvements be completed?
Substantial upgrades are expected by 2027, with staged completion of various facilities and ongoing enhancements into the early 2030s as part of a phased development plan.
