Airport supports bills to extend lease terms to attract major investment
Nestor Licanto | January 16th, 2024
The airport is seeking a change to the law that it hopes will encourage major investments, and also bring in much-needed revenue.
A pair of bills were discussed today that would extend the current 5-year limit on long-term leases to 10 years and 30 years respectively.
The airport said big investors would be easier to attract if they were to get more time to make their money back. They cited Vietnam Air as an example, which had approached GIAA about potentially investing in a $200-million maintenance, repair, and overhaul facility.
The airport also said it supports Senator Roy Quinata's bill to change the maximum lease term to 30 years but Senator Telo Taitague, who's sponsored similar legislation in the past, says 10 years is more acceptable for now.
Sen. Taitague said, “The missed opportunities we can lessen that, we can lessen that to those who are willing to do it for ten years. Again I'm leery about going to 30, because I feel that if someone is going to make an investment of $200-million or a $100-million dollars they can come to this body and get that 30 year lease.”
Speaker Therese Terlaje said it's important for the legislature to be able to review and approve long-term leases to help ensure the public gets the best deal possible.
Airport Deputy Manager Ricky Hernandez said there will be other safeguards in play.
“Because we don't want to commit to a private company without doing our due diligence. Because they may just sit on the land. And so we want to make sure that they have the financial capacity to do complete what they say they're going to complete, we want to know if the financing is something that's viable, and we want to make sure there is compatibility and that it doesn't take away from other types of things that the airport is planning in the future,” Hernandez said.
He also said the airport must also comply with Federal Aviation Administration rules when leasing airport property.