BY GEROME DALIPE IV
ILOILO City – The Department of Transportation (DOTr) is accelerating its plans to privatize the operations and management of at least four major airports by 2025.
According to Transportation Undersecretary for Aviation Roberto C. O. Lim, the airports set for privatization include the Iloilo International Airport, Davao International Airport, Puerto Princesa International Airport, and the Kalibo International Airport.
The move aims to hand over the management of these airports to private entities by next year, 2025.
The agency noted that privatization is expected to improve the efficiency, services, and infrastructure at these airports, enhancing the overall travel experience.
The successful privatization of Ninoy Aquino International Airport (NAIA) has encouraged the DOTr to expedite the transfer of management and operations of four additional airports to the private sector by next year.
Following the NAIA model, the DOTr believes that private sector involvement can enhance the operational efficiency and service quality of these airports.
The privatization process is projected to address infrastructure gaps and improve services, making these airports more competitive and passenger-friendly, while contributing to overall economic growth through improved connectivity and tourism.
Mayor Jerry Treñas welcomed the DOTr’s pronouncement, noting that he has been lobbying to expedite the airport’s proposed expansion.
“This is truly a dream come true, something I have long advocated for, dating back to my time as congressman of the Lone District of Iloilo City and even until I became mayor,” Treñas said.
The mayor noted the privatization will address long-standing operational issues including non-functional air-conditioning systems and broken escalators, which caused discomfort to travelers.
The privatization
Treñas believes the privatization will help fast-track the improvements needed to enhance the airport’s capacity and services, which will be vital in supporting Iloilo’s growing economy and tourism sector.
“It will not only improve passenger experience but also expand the airport’s capacity to accommodate larger planes and more flights, ensuring Iloilo continues to grow as a prime destination for business and tourism. With multiple investors already expressing interest, I am confident that the partnership will usher in a new era of development for our region,” he added.
He added that the expansion and privatization efforts align with his vision of making Iloilo a key gateway in the Visayas region, boosting connectivity and attracting more investments.
The Civil Aviation Authority of the Philippines (CAAP) reported that negotiations for the proposed P14.7-billion rehabilitation and expansion of Iloilo International Airport were completed on September 3, 2024.
In his letter to 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.
Prime Asset offers to improve the management and operational capability of CAAP in managing the Iloilo Airport through an operate-add-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 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./PN
