The Bases Conversion and Development Authority (BCDA) has signed a memorandum of agreement (MOA) with the Manila International Airport Authority (MIAA) for the disposition of the 61-hectare Ninoy Aquino International Airport (NAIA) Terminal 3 property, valued at Php48 billion.
As part of the new agreement, BCDA secured a significant increase in the annual lease payment from Php180 million to Php489 million. Additionally, the MOA grants MIAA a three-year option to either purchase the property for Php48.89 billion or continue leasing it from BCDA.
“This agreement is a win-win for the government, enabling BCDA to contribute more to state revenue, while helping MIAA maintain seamless air traffic flow through this vital gateway,” said BCDA President and CEO Joshua M. Bingcang. “It’s a critical public service initiative that will ultimately support the development of NAIA.”
Bingcang emphasized that the increased lease payments will boost government revenue and support BCDA’s mission of fostering economic growth through strategic development.
MIAA General Manager Eric Jose Castro Ines underscored the strategic importance of this deal for the future of Philippine aviation. “This lease-to-own agreement gives MIAA control over the land, enabling us to plan, expand, and modernize Terminal 3 without external constraints,” he said.
Should MIAA opt to purchase the property, a Php10 billion down payment will be required, with the balance accruing interest at 5% annually. BCDA has structured a 15-year payment plan with equal semi-annual installments, totaling approximately Php3.74 billion annually.
The acquisition would allow MIAA to own the land and infrastructure, making it possible for substantial investments in the terminal’s modernization and expansion, increasing its capacity to handle the growing demands of both domestic and international travelers.
In the first quarter of 2024, NAIA Terminal 3 processed 1.7 million international passengers and 1.5 million domestic passengers across thousands of flights.
Present at the MOA signing were BCDA Chairperson Hilario B. Paredes, MIAA Assistant General Manager Ma. Lourdes SJ. Reyes, and BCDA Executive Vice President Gisela Z. Kalalo.
Under Republic Act 7227, BCDA is tasked with transforming former military camps into economic hubs, generating income through property sales, leases, and joint ventures, while also supporting the Armed Forces of the Philippines and other beneficiaries. A portion of proceeds is also used to fund BCDA’s infrastructure projects.
