Incheon International Airport Corporation (IIAC) has secured a contract for the largest overseas airport development and operation project in its history, expected to generate sales of 37 trillion won in the Philippines.
On Feb. 16, it was announced that Incheon International Airport Corporation won the bid for the Manila Ninoy Aquino International Airport Development and Operation PPP Project (Private Investment Project). This airport is the main gateway airport and the capital airport of the Philippines.
This development and operation project will take place over 25 years, from this year until 2049. The expected cumulative sales are US$27.5 billion, with a total project cost of US$3 billion. This marks the largest scale of overseas project undertaken by Incheon International Airport Corporation to date.
Incheon International Airport Corporation formed a consortium with the Philippines’ San Miguel Holdings Corporation (SMHC) and local financial investors to participate in this bidding. It competed against three other consortia formed by major global airport developers and operators, including India’s GMR, the U.S.’ GIP, and Indonesia’s AP2, and emerged victorious, scoring the highest in qualification, technology, and price.
With this new project, Incheon International Airport Corporation expands its overseas business portfolio, already engaged in the entrusted operation of Kuwait Airport’s Terminal 4, the development and operation of Indonesia’s Batam Hang Nadim Airport, and the operation consulting project for Poland’s New Airport, becoming an airport operator covering the Middle East, Europe, and Asia.
Ninoy Aquino International Airport, as of 2019, is the Philippines’ leading gateway airport, handling 48 million passengers and 720,000 tons of cargo. Based on its accumulated experience in airport construction and operation, Incheon International Airport Corporation plans to pursue terminal expansion and operation optimization to increase the airport’s capacity to handle up to 62 million passengers annually, aiming to develop Ninoy Aquino International Airport into a mega hub airport in the region.
Incheon International Airport Corporation has secured a stable dividend income for up to 25 years (with a 10% stake in the project) from Ninoy Aquino International Airport and created new revenue streams, including the signing of an airport operation consulting service (TSA) contract. The expansion and operation of the airport will also enable the entry of Korean companies into various business areas, including architectural design, duty-free shops, and professional personnel supply.
Lee Hak-jae, president of Incheon International Airport Corporation, stated, “Based on the operational expertise accumulated by Incheon Airport, we will expand our overseas business base globally.”