BY GEROME DALIPE IV
ILOILO City – Negotiation on the proposed P14.7-billion rehabilitation and expansion of the Iloilo Airport is expected to be completed on or before Sept. 3, 2024, according to the Civil Aviation Authority of the Philippines (CAAP).
In his letter to Mayor Jerry P. Treñas, Capt. Manuel Antonio Tamayo, CAAP director general, said the unsolicited proposal for the rehabilitation, expansion, and maintenance of the Iloilo Airport is in the negotiation stage with Prime Asset Ventures Inc. (PAVI), the holding company of real estate magnate and former senator Manuel B. Villar Jr.
The Iloilo Airport is experiencing significant congestion, which impacts its operational efficiency and the comfort of passengers. This congestion has become a more pronounced problem as passenger and flight capacities have returned to pre-pandemic levels.
Further complicating the situation, there have been recurring problems such as non-functioning air-conditioning systems and escalators, underscoring the need for urgent repairs and updates. These issues have led to calls from local government officials for a faster redevelopment process.
“The negotiation team is committed to expediting the process and to finish the negotiation by the Public-Private Partnership (PPP) process,” said Tamayo.
Prime Asset offers to improve the management and operational capability of CAAP in managing the Iloilo Airport through an operate-and-transfer (OAT) contractual agreement.
The project includes expanding the airport’s passenger terminal building with necessary facilities as per International Civil Aviation to accommodate passengers, constructing an apron adjacent to the new terminal building, and renovating and maintaining the existing terminal building.
The project also intends to install the required equipment for the passenger services in the new terminal building and operation and maintenance of the passenger terminal buildings and equipment/facilities in the terminal building during the entire concession period.
The Villar group has submitted an unsolicited proposal for the operation, maintenance, and expansion of the Iloilo Airport as early as 2018.
PAVI has an authorized capital of P10 billion, with Villar holding 99.99 percent of the company.
However, it suffered a setback due to the newly- enacted Republic Act 11966 or the Public-Private Partnership (PPP) Code of the Philippines, which outlined guidelines on how the implementing agency and project proponent carry out such projects.
It took effect on Dec. 23, 2023, while its implementing rules and regulations (IRR) took effect on April 7, 2024.
The Department of Transportation (DOTr) targets to award the project to the private entity within the first quarter of 2025.
Under the PPP Code, the implementing agency shall consider significant issues and concerns in the project implementation.
These include the legal, technical, economic, financial, and commercial feasibility of the project, as well as value for money, climate resilience, and sustainability; and social and environmental safeguards.
The development of such a project shall commence only after the conduct of stakeholder consultation, the law provides.
The implementing agency shall secure the approval of their respective city or town council and the local development councils.
The agency is also authorized to “identify, develop, assess, evaluate, approve, negotiate, award, and undertake” the public- partnership projects.
The approval by the National Economic Development Authority is necessary for the proposed project worth more than P15 billion./PN
