MANILA, Philippines — State-run Bases Conversion and Development Authority (BCDA) said it is still negotiating with the Manila International Airport Authority (MIAA) on whether the latter will lease or buy the property where the current NAIA Terminal 3 facilities and runway are located.
In a recent interview, BCDA president and chief executive officer Joshua Bingcang told reporters one of the big revenue potential of the BCDA is the renewal of the lease for the 60-hectare land where Terminal 3 is located.
“Basically we are projecting at least P600 million a year for just one property,” Bingcang said referring to the revenue to be generated by the property.
Bingcang said he is set to have a meeting with MIAA acting general manager Eric Jose Inis regarding the property. The 25-year lease of the 60-hectare property expired last year.
“They have two options, if they want to buy it, we are open to that. If they want a long term-lease, we are also okay with that,” Bingcang said.
“We had talks before for them to acquire the land,’’ he added. However, Bingcang said he suggested leasing it first, emphasizing that it can be leased to own.
The BCDA official shared that the zonal value of the property is at P50 billion. “That’s just the zonal value. But if market value, all the more,” he said.
Asked if the BCDA will increase the rent for the property, Bingcang answered in the affirmative. “Of course, the price in 1997 is different from the price in 2024,” Bingcang said, adding that the rent was set at P200 million a year when the lease began in 1997.
Bingcang said the MIAA remains up-to-date with its payments.
The 60-hectare NAIA T3 property sits right across the 26-hectare Newport City of Megaworld Corp.
Pursuant to its mandate under Republic Act 7227 or the Bases Conversion and Development Act, the BCDA generates income from the sale, lease or joint venture arrangements with private sector partners in former military camps in Metro Manila.
The BCDA said the proceeds are remitted to the Bureau of the Treasury every year, which are then allocated and distributed by the Department of Budget and Management to the Armed Forces of the Philippines and other beneficiary agencies.
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The article was originally published in PhilStar Global and written by Catherine Talavera.