With the continuous issues and problems hounding our airport, the government is looking at tapping the private sector to help in the expansion, operation and maintenance of regional airports throughout the country.
“We are continuing the evaluation of the unsolicited proposals for the regional airports,” Transportation Secretary Jaime Bautista said in a briefing.
He added they have communicated with those who expressed interest in various projects that will modernize the nation’s aviation sector to resubmit their proposals based on the amended 2022 Implementing Rules and Regulations (IRR) of the Build-Operate-Transfer Law that was approved by the Marcos administration.
The amended 2022 IRR was approved on Sept. 15, 2022 and took effect on October 12. The amendments aim to address stakeholder concerns about the financial viability and bankability of PPP projects, as well as clarify ambiguous provisions that might have caused delays in the PPP process.
Bautista said there was already one proposal submitted to the Department of Transportation (DoTr) on December 2 and they expect additional private entities to submit their proposals by January 2023.
The previous administration received several unsolicited proposals for the expansion, operation and maintenance of regional airports but it was not able to complete the award of the projects to the private sector.
These included the unsolicited proposal submitted in 2018 by Aboitiz InfraCapital, the infrastructure business unit of the Aboitiz Group, to upgrade, expand, operate and maintain four major regional airports over a 35-year concession period.
These four regional gateways were the Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and Bohol-Panglao International Airport.
The first three are already operating above capacity and require urgent rehabilitation, while the Bohol-Panglao airport is eyed to open the island further to the international tourism market as part of the national tourism strategy.
This move will also decongest Manila’s Ninoy Aquino International Airport.
These regions have experienced tremendous growth in the last few years and the airports have struggled to follow the pace of development.
The Iloilo and Bacolod airports have been operating for 10 years, while Laguindingan started operating in 2013.
Davao-based businessman Dennis Uy-led Chelsea Logistics Holdings Corp. has submitted its offer to modernize the Davao International Airport. Other unsolicited proposals submitted during the Duterte administration were from Prime Asset Ventures Inc. of the Villar group for the Puerto Princesa Airport and Iloilo International Airport; Filipino-Chinese firm Mega7 Construction Corp. for the operation and maintenance and upgrade of the Kalibo International Airport; Philippine Airport Ground Support Solutions Inc. for the Siargao Airport in Surigao del Norte; and Udenna Infrastructure Corp. for the Bacolod-Silay Airport.
The DoTr has encouraged private-sector participation and is actively pursuing the PPP scheme in completing big-ticket transportation infrastructure projects throughout the country.
Secretary Bautista said the PPP scheme will generate investments and employment for Filipinos, while promoting transport connectivity and reducing logistics costs.
Another big-ticket project being undertaken by the DoTr aviation group in partnership with San Miguel Corp. is the P740-billion New Manila International Airport in Bulacan.
“By 2024, the proponent can start the construction of the runway and the passenger terminal building,” he said. “These are the major projects of the DoTr for the country’s airports although we will continue to improve the facilities of all the other airports in the country,” Bautista added.
With additional report: The Manila Times, Franco Jose Barona
