BCDA, MIAA sign MOA on Terminal 3 lease, purchase option

The Bases Conversion and Development Authority (BCDA) has signed an agreement with the Manila International Airport Authority (MIAA), increasing Terminal 3's annual lease payment at Ninoy Aquino International Airport to P489 million.

This new memorandum of agreement (MOA) includes a three-year option period, during which MIAA can either purchase the property for P48.89 billion or continue leasing it with an annual interest rate of 5% if they choose to buy.

BCDA President Joshua Bingcang stated that this arrangement benefits both parties by increasing BCDA's contribution to government coffers and ensuring smooth air traffic operations at Terminal 3.

MIAA General Manager Eric Jose Castro Ines highlighted the importance of transitioning from a leaseholder to an owner, which will allow MIAA full control over the land for future planning and expansion.

If MIAA decides to purchase the property, it must put up a downpayment of P10 billion less the total cumulative annual payments already remitted, with BCDA offering a 15-year payment plan at an annual cost of approximately P3.74 billion.