Philippines to launch ‘hybrid’ airport PPP

Tenders will be opened for both the construction and operation of the new terminal at Manila’s Clark International Airport.

The Philippine government plans to roll out tenders this month for an expansion project at the capital’s Clark International Airport under a ‘hybrid’ PPP model. 

The scheme will see a mix of official development assistance, state funding and private sector participation through PPP in the construction and operation of a new terminal at the hub, according to Vicencio Dizon, head of the Bases Conversion and Development Authority, which is responsible for implementing the project. 

As the first hybrid PPP project under the Duterte administration, the plan will see the government build an 82,600-square-metre terminal building with a capacity of 8 million passengers per year, funded with public money. The state will then hand the facility over to private sector players for operation and maintenance under a PPP contract, according to Dizon. The new terminal is scheduled to become operational by 2019. 

The government sees the hybrid PPP model as an effective scheme to avoid delays and lower financing costs for construction while delivering better services. The expansion project, estimated to cost 12.55 billion pesos ($248 million; €217 million), was approved by the country’s National Economic and Development Authority last week, among other priority infrastructure projects. 

The Clark International Airport is meant to complement the Ninoy Aquino International Airport, which is now handling traffic beyond its capacity. It is reported that passenger traffic in the latter reached almost 40 million last year, despite being designed to accommodate only 30 million. The Clark airport, with an existing capacity of 4.2 million passengers per year, now handles 120 domestic and 138 international flights per week.