In Part 1 of this article, we looked at the broader changes in the public-private partnerships (PPP) landscape in 2024, and some European impacts of divestments and acquisitions. This penultimate section goes further afield to Asia and Latin America.

In the Philippines, a major PPP project at Manila’s Ninoy Aquino International Airport (MNL) was finally signed off by the Department of Transportation (DOTr) and Manila International Airport Authority (MIAA) following the winning bid by SMC-SAP & Company Consortium. The concession is for 15 years with an option for a further 10 years.

SMC-SAP—composed of San Miguel Holdings Corporation, RMM Asian Logistics Inc., RLW Aviation Development Inc., and Incheon International Airport Corporation—fought off two rivals by offering to share with the government 82% of future gross revenue, (excluding passenger service charges).

The $3 billion project will cover upgrades to all facilities of the busy airport including its runways, four terminals, and other facilities. The over-capacity MNL processed 45.3 million passengers in 2023, up 46% over the previous year.

Cynthia Hernandez, Executive Director of the Philippines’ dedicated PPP Center, regards the deal as a watershed moment. “It is a significant milestone in the Philippine infrastructure landscape. We are confident that the streamlined process this project underwent will serve as a blueprint for future Philippine PPP programs,” she said.

Also in Asia, some big news emerged mid-year when Malaysia’s government selected an entity led by BlackRock to run Malaysia Airports Holdings Berhad (MAHB), the operator of Kuala Lumpur International Airport (KUL) and most of the other gateways in the country.

The move, according to Channel News Asia, came after BlackRock, through GIP, accepted some stringent terms including an agreement to continue appointing a Malaysian as MAHB’s chairman and CEO, and to maintain the collective national majority ownership of shares.

It seems that other suitors did not agree to the unusual terms set by Khazanah Nasional (the government’s sovereign wealth fund) and the Employees Provident Fund (EPF). Malaysian Prime Minister, Anwar Ibrahim, said that thanks to the conditions set by Khazanah, the collective Malaysian ownership of MAHB will increase to 70% from the current 41% once the restructuring of the airport operator is completed. There is, therefore, some way still to go on this deal.

Colombia Takes the PPP High Road

It has been a busy year in Colombia where the concession for Cartagena Airport (CTG) was awarded by the National Infrastructure Agency (NIA), while three bidders await the result of the San Andres Airport (ADZ) tender. San Andrés Island is one of the most important tourist destinations in the country handling more than two million passengers in 2023.

In the case of CTG, the award went to Operadora Internacional Aeropuerto de Cartagena SAS (OINAC). As well as operating the airport, the entity is tasked with expanding and remodeling the gateway to help drive the national tourism strategy.

The works will include a new international terminal, a revamp of the existing one, new boarding bridges, rescue and firefighting services, and a new cargo terminal.

Earlier this year NIA president, Francisco Ospina Ramírez, noted that he was looking to improve at least six concessioned airports.

He said: “We are already implementing our airport expansion strategy. The pre-construction stage of the Rafael Núñez International Airport in Cartagena began in March and construction is expected to begin in the first quarter of 2025 on the project, which has an investment of $920 billion.”

The changes will raise the airport’s capacity from 5.7 million passengers per annum to in excess of eight million per year.

• In the third and final part of this report, to be published on January 8, we look at moves in the Australian market, how government reforms may open up the Canadian market, and the regions that will be a focus for PPP players in 2025 and beyond.
• This article is modified from the original in Airport World, the magazine of Airports Council International.