MANILA, Philippines –  Flag carrier Philippine Airlines (PAL) is proposing to build a new annex building at the Ninoy Aquino International Airport (NAIA) Terminal 2, which will include a new passenger terminal, in a bid to address the terminal’s overcapacity issues.

In a presentation before the Management Association of the Philippines (MAP) yesterday, PAL president Jaime Bautista unveiled an architect’s perspective of the proposed annex, which will house a passenger terminal with a capacity of 12 million to 15 million per year.

The STAR earlier reported that PAL is ready to invest $400 million for the proposed project, which will be built beside its current hub at the NAIA Centennial Terminal 2.

Bautista emphasized that Terminal 2 has already exceeded its 30,000 million passenger capacity per year in 2012 as it accommodates around 42,000 million passengers a year.

He added the project would help decongest the airport as it would feature a new, 89,000 square-meter air terminal (equivalent to 200 basketball courts) north of NAIA 2.

Aside from the passenger terminal, the complex will include multi-level parking for 1,000 vehicles, a new cargo terminal and ground service facilities.

The proposed annex building will rise on a 16-hectare area adjacent to NAIA 2, comprising of the now-defunct Philippine Village Hotel, the former Nayong Pilipino complex and a property owned by the Philippine Amusement and Gaming Corp. (Pagcor).

On the sidelines of the MAP meeting, Bautista said PAL needs to lease an additional 15 hectares of land to put up the project.

“We have an existing lease of 18 hectares in that area. We have an eight hectare lease from MIAA and a 10-hectare lease from Pagcor,” Bautista said.

“So all we need is the additional five hectares from Pagcor and 10 hectares from MIAA,” Bautista added.

Bautista told reporters that PAL originally proposed the project in 2015 under the Aquino administration, only revisiting the plan in May.

Department of Transportation(DOTr) Undersectretary Manuel Antonio Tamayo told reporters the department is still studying the proposed.

“We’re just following government procedures whether to consider it as an unsolicited proposal since it’s not a simple leasing of the property and there is a plan to build a new terminal. So we have those information and it is being processed,” Tamayo said.

While the project has to get approved, Bautista said PAL is in need of partners to pursue the project.

The company official, however, said they are not yet in talks with potential partners.

Moreover, Bautista said PAL is keen on the annex building project to consolidate its operations and provide adequate room for its growing fleet of jets and international and domestic passengers.

At present, the National carrier operates at NAIA Terminals 1, 2 and 3 for some of its domestic flights.

Furthermore, Bautista stressed it needs government’s full support, especially in securing crucial land leases from agencies like the Manila International Airport Autrhority (MIAA) and Pagcor in order for its vision to succeed.

“We also need government to continuously invest in building, developing, enhancing and upgrading airport infrastructure, not just for NAIA but all throughout the country, as PAL and other airlines out up more flights and open new routes in our race for a thriving economic future,” he added.

Bautista added that PAL has been doing its share to help decongest NAIA while stimulating air travel to the Philippines.

“We’re already building up a new network of local and regional flights from Clark, Cebu, Puerto Princesa, Davao, Caticlan and Kalibo,” Bautista concluded.