BCDA open to selling NAIA T3 site amid lease renewal talks

THE Bases Conversion and Development Authority (BCDA) said that it is currently in talks with the Manila International Airport Authority (MIAA) for future lease or sale agreements for an airport terminal sitting on BCDA land.

“One of the big revenue potentials of BCDA is the renewal of the lease for the land where Terminal 3 is located. That is BCDA’s land, the entire 60 hectares,” BCDA President and Chief Executive Officer Joshua M. Bingcang said in a briefing last week.

According to Mr. Bingcang, BCDA’s 25-year lease agreement with the MIAA expired last year. The lease covers the property where the Ninoy Aquino International Airport Terminal 3 (NAIA T3) was built.

“The arrangement that we have, which ended last year, is a 25-year lease. They were up to date with their payments … and we have ongoing negotiations,” he added.

“We have two options, one is for them to buy it and we are open to that because it is cash now, but we are also okay with a long-term lease,” Mr. Bingcang said.

“We have had acquisition talks before because anyway we do not have other uses for it,” he added.

The zonal value of the 60-hectare property is P50 billion which would be lower than the market value if a sale is executed, according to Mr. Bingcang.

However, he said that if the MIAA decides to go with a long-term lease agreement the BCDA will be proposing higher lease rates.

“The price in 1997 is different from the price in 2024. Before, it was P200 million a year. Basically, we are projecting at least P600 million a year for (that) property,” he added.

Mr. Bingcang was due to meet Eric Jose Castro Ines, the general manager of the MIAA, last week.

Asked to comment, the MIAA said that it will “provide updates once the higher authorities have finalized their discussions,” noting that the discussions took place at a “closed-door meeting.” — Justine Irish D. Tabile