Incheon Airport Consortium signs $3.05 billion deal to oversee Manila airport

Industry

Published: 18 Mar. 2024, 19:30

Incheon Airport Consortium signs $3.05 billion deal to oversee Manila airport

A view of Ninoy Aquino International Airport in Manila, the Phillippines [NINOY AQUINO INTERNATIONAL AIRPOT]

A consortium of Incheon International Airport Corporation (IIAC) officially signed a $3.05 billion deal with the Philippines' Department of Transportation (DOTr) to oversee the operation and maintenance of Manila's main airport on Monday.

The shareholders' agreement formalizes the Ninoy Aquino International Airport (NAIA) Public-Private Partnership Project, which the consortium of Incheon International Airport Corporation (IIAC) and Filipino firms including San Miguel Holdings Corporation, RMM Asian Logistics and RLW Aviation Development won last month.

Government officials and members of the consortium, including signed the agreement at the Malacañan Palace in the Philippines, including the Bongbong Marcos, president of the Philippines, and IIAC President Lee Hag-jae.

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Under the agreement, IIAC and the Filipino firms will undertake the privatized operation and maintenance of NAIA with the goal of expanding the airport’s annual capacity to 62 million passengers by 2049. Its capacity was 48 million as of 2019.

The project also includes overseeing the refurbishment of runways and passenger terminals' airside facilities.

A consortium of Incheon International Airport Corporation and Filipino firms formally signed Monday an agreement at the Malacanan Palace in the Philippines [INCHEON INTERNATIONAL AIRPORT CORPORATION]

Incheon International Airport is projected to accumulate 36.9 trillion won ($27.5 billion) from the Manila operation during the management period, marking its largest-ever overseas project.

The consortium also established New NAIA Infra Corp (NNIC), a corporate body that will oversee and conduct the project, in the Philippines before formally signing the project agreement.

NNIC will undergo a six-month preparation procedure before taking over the NAIA's operations and infrastructure development.

The IIAC, which holds a 10 percent stake in NNIC, will also take charge of the airport's overall operations throughout the project and will separately work to win new operational consulting contracts.

The state-run corporation plans to design a separate task force, consisting of various experts in terminal operation, security and infrastructure maintenance, to help take over the operation.

IIAC will also send four of its experts to the Philippines to consult with Manila’s airport authorities.

The project is one of several projects the consortium has overseen in the Philippines. The group provided master plans for Mactan-Cebu International Airport in 2011, nationwide airport plans in 2015 and construction management for Palawan Airport in 2018.

“We plan to dramatically improve the Philippines’ gateway airport, Manila airport’s, operation and airport service based on Incheon Airport’s world-class construction and operational know-hows,” IIAC President Lee said. “Through successfully conducting the project, we will continue expanding our overseas business worldwide.”

IIAC is currently engaged in a number of overseas projects, including the consignment operation of Kuwait Airport's Terminal 4, the operation and maintenance of Batam Hang Nadim Airport in Indonesia and consulting for Poland's new airport project.

BY KIM JI-YE [kim.jiye@joongang.co.kr]