Won contract for development and operation of Ninoy Aquino International Airport in the Philippines
Expected sales of 37 trillion KRW over 25 years
Secured dividend income and consulting contracts as well
Incheon International Airport Corporation has secured the largest overseas airport development and operation project to date, with expected sales of 37 trillion won in the Philippines.
On the 16th, Incheon Airport Corporation announced that it had won the bid for the 'Manila Ninoy Aquino International Airport Development and Operation PPP Project (Public-Private Partnership)'?the largest gateway airport and capital airport in the Philippines. The PPP project is a method in which the government and private sector cooperate to construct, operate, and manage public infrastructure such as roads and airports.
This development and operation project will be carried out over 25 years from this year until 2049. The expected cumulative sales amount is 27.5 billion USD (approximately 36.7 trillion won). The total project cost invested during the project period reaches 3 billion USD. This is the largest overseas project ever secured by Incheon Airport Corporation.
Incheon Airport Corporation formed a consortium with the Philippine San Miguel (SMHC) and local financial investors to participate in this bid. They won against three other consortia formed by major global airport developers and operators such as India's GMR, the USA's GIP, and Indonesia's AP2. It is explained that they received the highest scores in qualification, technology, and price categories.
With this win, Incheon Airport Corporation has expanded its overseas business portfolio, becoming an airport operator spanning the Middle East, Europe, and Asia, following its ongoing projects: ▲ Kuwait Airport Terminal 4 entrusted operation project ▲ Indonesia Batam Hang Nadim Airport development and operation project ▲ Poland new airport operation consulting project.
Ninoy Aquino International Airport is the representative gateway airport of the Philippines, handling 48 million passengers and 720,000 tons of cargo as of 2019. Based on the accumulated experience in airport construction and operation, Incheon Airport Corporation plans to promote terminal expansion and operation optimization. They aim to increase the annual passenger handling capacity to 62 million and develop Ninoy Aquino International Airport into a regional mega-hub airport.
Incheon Airport Corporation secured stable dividend income (with a 10% equity stake) for up to 25 years at Ninoy Aquino International Airport and created new revenue sources such as signing an airport operation consulting service (TSA) contract. The expansion and operation of the existing airport also allow Korean companies to enter various business fields such as architectural design, duty-free shops, and professional manpower supply.
Lee Hak-jae, President of Incheon Airport Corporation, stated, "Based on the operational know-how accumulated at Incheon Airport, we will expand the base of our overseas business worldwide."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
