The International Finance Corporation (IFC), an international institution concerned with private-sector investment in developing countries, has finalized an agreement between the Bases Conversion and Development Authority (BCDA) and the North Luzon Airport Consortium for the operation and maintenance (O&M) of Clark International Airport in the Philippines.
North Luzon Airport Consortium, which includes Changi Airport Group, Filinvest Development Corporation, JG Summit and Philippine Airport Ground Support Solutions, will operate the airport for a 25-year period. The announcement follows the engineering, procurement and construction (EPC) public-private partnership (PPP) concluded in 2017.
Under the agreement, a new 100,000m² (1,076,000ft²) terminal will be built, positioning the airport as a world-class facility. It will serve an estimated eight million passengers annually, four times its current capacity, and is expected to reduce the strain on the congested Ninoy Aquino International Airport.
IFC was the lead transaction advisor to BCDA in helping structure and tender both the EPC and O&M contracts. IFC also prepared the project and conducted competitive tenders with support from the World Bank’s Global Infrastructure Facility (GIF).
IFC operates as a member of the World Bank Group, an international financial institution with 189 member countries that provides loans to for capital projects around the world.
Vivek Pathak, IFC director for East Asia and Pacific, said, “This project demonstrates IFC’s willingness to test and try out new PPP models in support of the government’s goal to deliver crucial infrastructure that is key to sustaining the country’s growth momentum.
“The handover of the airport to a globally recognized operator will also help ensure quality service delivery and boost traffic connectivity to the northern provinces of the country, as well as to the region and the rest of the world.”
Vince Dizon, president, BCDA, said, “As the first hybrid PPP airport awarded through a transparent and competitive tender, we are confident that Clark Airport will soon be able to welcome more passengers with higher-quality service.
“IFC’s advice has been instrumental in structuring these transactions, which have become a model for hybrid PPPs in the Philippines.”