Monday, February 12, 2024

SMC Consortium: A Journey Towards World-Class Excellence


Photo Credit: PNA

San Miguel Corporation (SMC), a notable player in the Philippine business landscape, has unveiled its readiness to transform the Ninoy Aquino International Airport (NAIA) into a world-class standard airport. This announcement follows the consortium's financial proposal, which emerged superior among three bidders during a recent bidding event held by the Department of Transportation (DOTr).

The SMC consortium comprises of industry heavyweights including San Miguel Holdings Corp, RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corp (IIAC). Each member of the consortium brings unique capabilities, making it a formidable force to reckon with in the airport modernization project.


SMC President and CEO, Ramon S. Ang, emphasized that the consortium’s financial proposal is designed to prioritize benefits to the government and the Filipino people. The objective is to elevate NAIA to world-class standards, ensuring an exceptional experience for travelers through first-rate services and facilities.

The consortium is committed to bringing significant value and advantages to the nation, the government, and the Filipinos. This project is not merely about improving an airport; it is about enhancing the Filipino experience and contributing to the country's growth and development.


The bidding process was facilitated by the DOTr. Ang lauded the department for ensuring a transparent and equitable bidding process, which is a cornerstone for fair competition and the selection of the most competent and capable bidder.


The consortium is also strategically collaborating with IIAC, focusing on developing an airport ecosystem that promotes better connectivity, high-quality service, and operational efficiency. IIAC is the developer and operator of the Incheon International Airport, the largest airport in South Korea, which opened in 2001.


Incheon International Airport has been ranked by air transport research firm Skytrax as the 4th best airport globally in 2022. The airport was also awarded the highest level of customer experience by the trade association of the world’s airports, the Airports Council International. This recognition serves as an inspiration for the consortium as it seeks to elevate NAIA to world-class standards.


The consortium is also developing the New Manila International Airport (NMIA) project in Bulacan concurrently. This simultaneous development is poised to enhance operational efficiencies, reduce costs, and optimize flight schedules, contributing to a more connected and accessible Philippines.


Ang's vision is to create an integrated airport network that not only improves the travel experience but also supports sustainable economic growth. This vision aims to position the Philippines as a prime hub for tourism, business, and investment in the region.



The DOTr revealed that the SMC-SAP & Company has offered to share 82.16 percent of future gross revenues, excluding passenger service charges, with the government, in addition to a fixed upfront fee of PHP30 billion and an annual fee of PHP2 billion, both payable to the government.


The other bidders were the GMR Airports Consortium, which offered 33.30 percent, and the Manila International Airport Consortium, which offered 25.91 percent. All three bidders were approved by the pre-qualification bids and awards committee (PBAC) for the NAIA PPP project and ranked their proposals on Thursday.


The PBAC will review the financial proposals for compliance with the requirements of the Instructions to Bidders. This process includes specific requirements for the financial model and financing plan submitted by the bidders. A notice of award is expected to be issued to the winning bidder by Feb. 15.

Learn about the SMC consortium's journey towards transforming the Ninoy Aquino International Airport into a world-class standard airport. Discover their vision, strategy, and the financial proposal that emerged superior among three bidders. The transformation promises an exceptional travel experience and supports sustainable economic growth in the Philippines.

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