BCDA to generate Php48 billion from NAIA terminal 3 disposition
Art Dumlao — March 27, 2025
BCDA: Gov’t earns P48B in NAIA T3 property lease
BAGUIO CITY (March 26, 2025) -- State-run Bases Conversion and Development Authority (BCDA) on Tuesday 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 amounting to P48 billion.
Under the new MOA, BCDA secured an increased annual lease payment of P489 million, from the prior P180 million.
BCDA Chairperson Hilario B. Paredes, MIAA Assistant General Manager Ma. Lourdes SJ. Reyes and BCDA Executive Vice President Gisela Z. Kalalo, also attended Tuesday’s MOA signing that also grants MIAA a three-year option period to decide whether to purchase the 61-hectare property for Php48.89 billion or continue leasing it from BCDA.
“This agreement is a win-win for the government, as it enables BCDA to contribute more to the state coffers, while helping MIAA ensure uninterrupted air traffic flow through this critical gateway,” BCDA President and CEO Joshua M. Bingcang explained. “This serves as a vital public service contribution that will ultimately lead to the development of NAIA.”
He also said that the significant increase of payments provides a substantial boost to government revenue, enabling BCDA to contribute more to the national coffers. “This aligns seamlessly with BCDA's mandate to drive economic growth through strategic and impactful development initiatives.”
While MIAA General Manager Eric Jose Castro Ines in a statement sent to journalists highlighted the strategic importance of the disposition for the future of the Philippine aviation and airline sectors. “Through this lease-to-own agreement between the MIAA and the BCDA, we are taking a crucial step towards securing a long-term development of NAIA Terminal 3. By transitioning from a leaseholder to a rightful owner, MIAA gains full control of the land, allowing us to plan, expand, and modernize the terminal without external limitations.”
The BCDA said, if MIAA opts to buy, a down payment of P10 billion, less the total cumulative annual payments already remitted, will be required. The outstanding balance will accrue interest at an annual rate of 5 percent, reflecting a reasonable return on investment for the government.
The state-run firm has accordingly structured a 15-year payment plan, comprising equal semi-annual installments, which approximate P3.74 billion per year.
This potential acquisition would allow MIAA to secure ownership of the land and infrastructure, enabling them to make substantial and lasting investments in the airport's development, modernization, and expansion, thereby enhancing its capacity to serve the ever-growing demands of both domestic and international air travel.
In the first quarter of 2024, NAIA Terminal 3 reportedly handled significant passenger traffic, processing 1.7 million international passengers across 7,700 flights and 1.5 million domestic passengers across 8,200 flights.
With BCDA’s mandate under Republic Act 7227 (Bases Conversion and Development Act), it transforms former military camps into centers of economic growth, generating income through disposition proceeds from sale, lease, and joint venture, as well as concession fees and other receipts.
Portions of these proceeds are remitted to the Bureau of the Treasury through dividends and contributions to the Armed Forces of the Philippines and other beneficiary agencies. Also, a share of the earnings are used to fund BCDA’s infrastructure projects to help strengthen and boost the competitiveness of its economic zones.
