The successful privatization of the Ninoy Aquino International Airport (NAIA) has prompted the Department of Transportation to also speed up disposing to the private sector four more airports in 2025.
These include Davao, Iloilo, Puerto Princesa and Kalibo, Aklan which are all tourist destinations and won't require much hard selling.
Transportation Undersecretary for aviation Roberto Lim told reporters at the sidelines of last week’s aviation forum that they have ongoing negotiations with proponents.
The agency also expects to launch the competitive tender for the Davao International Airport under a public-private partnership (PPP) program, Business World reported.
The bidders
Villar-led Prime Asset Ventures, Inc. holds the original proponent status for both P14.7-billion Iloilo International Airport and P10.24-billion Puerto Princesa International Airport, according to the Public-Private Partnership (PPP) Center website.
Mega7 Construction Corp. has submitted an unsolicited proposal to operate, upgrade and maintain the P3.62-billion Kalibo International Airport.
Lim said the government expects to award the contract for the operations and maintenance of New Bohol-Panglao International Airport this year. The contract is undergoing a Swiss challenge, which allows other companies to submit alternative proposals that the original proponent can match.
The Aboitiz Group’s infrastructure arm, last September, got the contract for the operations and maintenance of the P12.75-billion Laguindingan International Airport in Northern Mindanao.
Aboitiz InfraCapital, Inc. is expected to sign the contract this month, DoTr said, adding that the new private operator would take over operations by next year.
It also holds the original proponent status for the operations and maintenance of the P4.5-billion Bohol airport.
Aside from the two regional airports, the government has also turned over the operations and maintenance of the country’s main gateway, the Ninoy Aquino International Airport, (NAIA) to San Miguel Corp.-led New NAIA Infrastructure Corp.
The New NAIA venture is composed of San Miguel, RMM Asian Logistics, Inc., RLW Aviation Development, Inc. and Incheon International Airport Corp., the operator of South Korea’s international airport.
The group took over the operations and maintenance of NAIA on Sept. 14 after offering to allocate 82.1% of NAIA revenues to the government.
Transportation Secretary Jaime Bautista earlier said one group had expressed interest in Davao International Airport, although the company had not submitted a former proposal.
Lim said the DoTr is working with the World Bank, International Finance Corp. and the Asian Development Bank for more PPP projects in 2025, including the Davao, Busuanga, Bacolod, Bicol and General Santos airports.
Better service?
Rene Santiago, former president of the Transportation Science Society of the Philippines, stressed that the state’s decision to privatize these airports ensures better operations and maintenance.
“Privatization transfers large chunks of required investments to the private sector, and assures better maintenance and operations upon completion. It is a tacit admission of weak public sector capabilities,” he said.
“In general, I agree with this direction,” Nigel Paul Villarete, senior adviser on PPP at Libra Konsult, Inc., said adding that “clearly, this current policy direction of the government is… not propelled by ‘financial’ advantages but rather by the efficiencies that PPPs inject to airport operations and passenger experiences.”
He added that the government should pursue PPP projects through a solicited mode rather than just accepting unsolicited proposals noting that the PPPs would let the government spell out requirements.