Six Philippine Tycoons Revive Proposal To Upgrade Manila’s Congested Airport

A consortium backed by six Philippine tycoons has revived a proposal to upgrade the country’s main international airport in Manila at a total investment cost of over 100 billion pesos ($1.8 billion) amid a post-pandemic travel rebound.

The Manila International Airport Consortium—backed by the country’s biggest conglomerates including billionaire Andrew Tan’s Alliance Global, and Filinvest Development and JG Summit—have partnered with U.S.-based Global Infrastructure Partners, which has interests in airports across London and Sydney, to modernize the Ninoy Aquino International Airport and double its capacity to 62.5 million passengers a year by 2028.

“We envision a truly world-class airport befitting the beauty of the Philippines: one where congestion, reliability issues and unpleasant passenger experiences will become a thing of the past,” Kevin Tan, CEO of Alliance Global, said in a statement. Besides upgrading operating procedures and technology at NAIA, the consortium’s proposal includes a “significant upfront payment to the government.”

Built over 70 years ago, the country’s main international gateway, which was voted the world’s worst airport a few times by the travel website Sleeping In Airports, has been struggling to cope with burgeoning passenger traffic since flights resumed after pandemic restrictions were lifted. A power failure in January forced the cancelation of more than 300 flights and stranded more than 65,000 passengers.

“We submit this proposal united in the belief that our gateway to the world needs to represent the best of who we are as Filipinos,” Josephine Gotianum Yap, CEO of Filinvest Development, said in a statement. “Passing through our international gateway should be a seamless experience.” Filinvest, JG Summit—controlled by the family of late billionaire John Gokongwei—and Singapore’s Changi Airport Group formed a joint venture in 2021 to manage and operate the Clark International Airport, north of Manila.

The consortium also includes Ayala Corp’s AC Infrastructure, Aboitiz InfraCapital (operator of Mactan-Cebu International Airport) and billionaire Lucio Tan’s Asia’s Emerging Dragon Corp. A proposal to upgrade NAIA in 2018 was rejected by then- President Rodrigo Duterte during the pandemic.

Philippine business tycoons are pitching in to modernize the country’s infrastructure. Billionaire Ramon Ang’s San Miguel Corp., which has invested in toll roads and power plants, is developing a mega airport with a capacity to handle 100 million passengers annually on a sprawling 2,500 hectare (25 million square meters) site in Bulacan province, located 68 kilometers south of Clark Airport and about 32 kilometers north of NAIA. Another group co-led by House of Investments—controlled by the family of late Philippine tycoon Alfonso Yuchengco—and Cavitex Holdings is building an airport in the former Sangley airbase in Cavite, south of Manila.