Incheon International Airport Corporation Wins Bid for Development and Operation of Ninoy Aquino International Airport in the Philippines

Incheon International Airport Corporation (President & CEO Hag Jae Lee) announced on the February 16th that it has secured the development and operation rights for Ninoy Aquino International Airport, the largest gateway and capital airport in the Philippines, through a Public-Private-Partnership (PPP) project. The consortium “SMC-SAP AND COMPANY CONSORTIUM”, consisting of Incheon International Airport Corporation, San Miguel Holdings Corp. (SMHC), and local financial investment companies RMM Asian Logistics and RLW Aviation Development, was selected as the final awardee by the Philippine Department of Transportation (DOTr) and Manila International Airport Authority (MIAA).

At 10 a.m. local time on the March 18th (11 a.m. Korean time), at the Diamond Hotel in Manila, Philippines, the 'Signing Ceremony for Consortium Shareholders' Agreement for the Manila Ninoy Aquino International Airport Development and Operation Project' took place. After signing the agreement with local financial investment company representatives, Incheon International Airport Corporation CEO Lee Hak-jae (third from left in the photo) is seen posing for a commemorative photo with San Miguel Corporation Chairman Ramon Ang (second from left in the photo).

From left to right in the photo: Robert Wong, RLW CEO; San Miguel Corporation Chairman Ramon Ang; Incheon International Airport Corporation CEO Lee Hak-jae; Raymond Moreno, RMM CEO.

The bidding process involved four consortia, SMC-SAP And Company Consortium, and attracted globally renowned airport development and operation companies such as GMR Airports International B.V. (GMR) from India, Global Infrastructure Partners (GIP) from the United States, and PT Angkasa Pura II (AP2) from Indonesia. The SMC-SAP And Company Consortium emerged victorious after intense competition, securing the highest scores in qualification, technology, and price categories.

At 9 a.m. local time on the March 18th (10 a.m. Korean time), at Malacanang Palace in the Philippines, during the 'Manila Ninoy Aquino International Airport Development and Operation Project Contract Signing Ceremony', while Philippine President Bongbong Marcos observes, San Miguel Corporation Chairman Ramon Ang and Jaime Bautista, the Transportation Secretary, among others, are seen signing the concession agreement.

Aquino International Airport Development and Operation Project has a duration of 25 years (2024 to 2049), with an estimated total project cost of 4 trillion won (USD 30 billion). This marks the largest overseas project ever secured by Incheon International Airport Corporation, contributing significantly to the government's goal of achieving a cumulative overseas construction contract value of 1 trillion dollars this year.

This successful bid follows Incheon International Airport Corporation's victory in the Batam Hang Nadim Airport Public-Private Partnership(PPP) Project in Indonesia in 2021. With this achievement, the corporation is establishing itself as a global airport operator, expanding its overseas portfolio beyond the current projects, including the operation and maintenance of Kuwait Airport Terminal 4, Batam Hang Nadim Airport PPP Project, and the Airport Operational Advisory for Solidarity Transport Hubin Poland.

Ninoy Aquino International Airport, handling 48 million passengers and 720,000 tons of cargo in 2019, serves as the key gateway to the Philippines. Incheon International Airport Corporation will be responsible for the operation and maintenance of Ninoy Aquino International Airport for the next 25 years. Leveraging its accumulated expertise in airport construction and operation, the corporation plans to lead terminal expansion and operational optimization, increasing the airport's capacity to handle up to 62 million passengers annually and positioning Ninoy Aquino International Airport as a regional mega-hub airport.

The corporation aims to secure a stable dividend income (10% equity participation) over the 25-year period, capitalize on the abundant aviation demand at Ninoy Aquino International Airport, and diversify its revenue stream by generating new sources of income, including Airport Operation Consulting Services contracts(Technical Service Agreements; TSA).

Additionally, Incheon International Airport Corporation plans to facilitate the participation of domestic companies in the design and construction of future projects, thereby supporting their international market expansion and contributing to the nation's economy.

President&CEO Hag Jae Lee of Incheon International Airport Corporation stated, "Winning the bid for the Ninoy Aquino Airport Development and Operation Project consolidates our position as a global airport operator in Southeast Asia, following our success with the Batam Hang Nadim Airport project in 2021. We will expand our overseas business worldwide, based on the operational know-how accumulated at Incheon Airport."

At 9 a.m. local time on the March 18th (10 a.m. Korean time), at Malacanang Palace, the presidential residence in the Philippines, the signing ceremony for the 'Manila Ninoy Aquino International Airport Development and Operation Project Contract' took place. After signing the contract with the Philippine government, Incheon International Airport Corporation CEO Lee Hak-jae (right in the photo) is seen posing for a commemorative photo with Bongbong Marcos, the President of the Philippines (center in the photo), and San Miguel Corporation Chairman Ramon Ang (left in the photo).