By Ashley Erika O. Jose, Reporter
THE Department of Transportation (DoTr) is hoping to privatize at least 15 airports by 2026 as the government seeks to make regional airports “more economically viable.”
“The DoTr has informed its advisors to start working on bundling regional airports to make them more economically viable,” DoTr Spokesperson for Business Infrastructure Maricar L. Bautista said at the Public-Private Partnerships (PPP) in action: Transforming Infrastructure and Services briefing facilitated by the British Chamber of Commerce Philippines on Tuesday.
“Seven airports are now under PPP and by 2026, the DoTr targets to increase the number of airports under PPP arrangement to around 15,” she added.
Ms. Bautista noted that the government is targeting to have at least 20 airports under PPP by 2028 before the end of the Marcos administration.
She said the airports being eyed for PPP arrangement include the Iloilo International Airport, Davao International Airport, Laoag International Airport, Bicol International Airport, Bacolod-Silay International Airport, General Santos International Airport, as well as airports in Siargao, Dumaguete and Busuanga.
The DoTr is also working on bundling of smaller airports to offer as one project, Ms. Bautista said, without identifying the airports.
The Transportation department said last year that it is studying the possibility of offering smaller airports under a single contract as it is more enticing to private companies.
At present, the airports under PPP include Ninoy Aquino International Airport (NAIA) which is operated by San Miguel Corp.-led New NAIA Infra Corp; and the New Manila International Airport and Caticlan Airport which are under SMC’s units San Miguel Aerocity Inc. and Trans Aire Development Holdings Corp., respectively.
Other airports being managed by private operators include Mactan-Cebu International Airport by Aboitiz InfraCapital Cebu Airport Corp., Laguindingan International Airport, New Bohol-Panglao International Airport by Aboitiz InfraCapital, Inc., and Clark International Airport operated by Luzon International Premiere Airport Development Corp.
Sought for comment, PPP Center Deputy Executive Director Jeffrey I. Manalo said the Transportation department is still preparing the requirements for approval of the Department of Economy, Planning, and Development (DEPDev) for the Iloilo International Airport.
To recall, Villar-led Prime Asset Ventures, Inc.’s (PAVI) unsolicited proposal for the operations and maintenance of the Iloilo International Airport is now awaiting the approval of the Investment Coordination Committee of DEPDev. Once approved, it will then undergo a Swiss challenge.
PAVI holds the original proponent status for the P21.16-billion rehabilitation, expansion, operation, and maintenance of the Iloilo International Airport. The project needs to be endorsed and recommended for final DEPDev approval as the project’s cost is above P15 billion.
Mr. Manalo said the unsolicited proposal for the operations and maintenance of the Davao International Airport is still pending assessment.
According to the PPP Center website, the project is still being evaluated by the implementing agency.
The P12.9-billion project was submitted by Davao International Airport Consortium composed of Asian Infrastructure and Management Corp.; Filinvest Infra-Solutions Ventures, Inc.; and JG Summit Infrastructure Holding Corp.
For Rene S. Santiago, former president of the Transportation Science Society of the Philippines, the agency’s goal to privatize more airports is quite ambitious and may not be feasible within the timeline.
“It took more than five years to bid for privatization of three airports,” he said in a Viber message, referring to the privatization of NAIA, Laguindingan and New Bohol-Panglao airports.
The viability of airports under PPP arrangement would likely depend on the airports’ capacity, as some smaller regional airports are better off under the management of the government through Civil Aviation Authority of the Philippines (CAAP), Nigel Paul C. Villarete, senior adviser on PPP at the technical advisory group Libra Konsult, Inc., said.
“Some airports would have sufficient passenger volumes that would warrant sufficient income streams to generate profitability, but there are the smaller ones which won’t be and are better with the government which can provide subsidies. In general, PPP arrangements would be beneficial for the public inasmuch as it invites efficiency, which will redound to better services to our traveling public,” he said.