DOTr acknowledges need to expand, improve Iloilo Airport

By Jennifer P. Rendon

The Iloilo International Airport, which catered to more than 1.7 million passengers traffic in 2022, is deemed the fifth busiest airport in the Philippines.

In its current state, the Department of Transportation (DOTr) has acknowledged the need to expand and improve the terminal.

“We think that Iloilo Airport should be expanded. We just passed through the Iloilo airport this morning and we notice that there’s a really a need to improve it,” Transportation Secretary Jaime Bautista said during the Philippine Economic Briefing press conference at the Courtyard by Marriott in Iloilo City on Dec. 11.

Bautista also pointed to complaints about congestion in the area.

Bautista said he’s aware of the repeated calls of local government executives and different business groups to fast-track the proposed expansion and upgrading of the Iloilo International Airport in Cabatuan town.

For one, Iloilo City Mayor Jerry Treñas has asked the DOTr in a letter to address the airport congestion and the connectivity needs of the travelling public.

Treñas also cited the crucial role of the airport in fostering economic growth and tourism promotion for both city and province, as well as for the whole region.

But upgrading of the Iloilo Airport has been left out of the 2024 budget for infrastructure development of the DOTr.

CALL FOR PRIVATIZATION

Bautista said that the call for privatization of the Iloilo International Airport started in the previous administration.

“With the privatization of the airport, expanding it to accommodate 10 million passengers a year, it could help the economy of Iloilo and the neighboring areas and also attract more visitors and tourists,” he said.

Thus, Bautista said, “We’re working with all government agencies to see to it that we could have the privatization of the Iloilo International Airport.”

He bared that they’re working with the proponent and have requested them to submit new documents for them to be able to comply with the new PPP (Public-Private Partnership) Law.

Bautista said they’re hoping to be able to meet with the proponent in a few weeks where they also expect to submit the necessary requirements.

“There is what you call an unsolicited proposal. This was offered by a big conglomerate but as I mentioned, we need to get more information from them and they need to submit more documents for us to be able to assess their proposal,” he said.

After the submission of the proposal and working with DOTR and PPP Center, it would be submitted to the National Economic Development Authority (NEDA) for the approval of parameters, terms, and conditions.

“With that approval, we will go back to them and negotiate for the final parameters, terms and conditions and if we agree, babalik na naman kami ulit sa NEDA to get the final approval,” he said.

After that, Bautista said they would start the Swiss Challenge.

A Swiss challenge is a form of public procurement operated in some jurisdictions, which requires a public authority (usually an agency of government) that has received an unsolicited bid for a public project (such as a port, road or railway), or for services to be provided to government, to publish the bid and invite third parties to match or better it.

“So ‘yun ang proseso niya. It’s a little bit complicated,” he said.

But Bautista said they want to start it by the middle of next year.

The Infrastructure Development Committee (IDC) of the RDC appealed for the immediate review and approval of the Unsolicited Proposal (USP) and implementation of the project through PPP, as the project was not listed in the approved National Expenditure Program.

The IDC further passed a resolution, dated Sept. 15, 2023, urging the DOTr and Civil Aviation Authority of the Philippines (CAAP) to expedite the review of USP for expansion and upgrading of Iloilo Airport.

Based on the PPP Center, there are two interested investors who submitted USP to the DOTr for the Iloilo Airport expansion.

Aboitiz InfraCapital, Inc. (AIC)’s offer for the upgrade, expansion, operation, and maintenance of the Iloilo Airport costs P9.95 billion; while Prime Asset Venture, Inc.’s tender is valued at P6.89 billion.

The proposed airport expansion includes upgrading of Passenger Terminal Building (PTB), construction of an apron adjacent to PTB, installation of required equipment for passenger services, and modernization of appurtenant facilities.

PROPOSED EXPANSION

In an earlier report, the PPP Center said there are two interested investors who submitted USP to the DOTr for Iloilo Airport expansion.

Aboitiz InfraCapital, Inc. (AIC)’s offer for the upgrade, expansion, operation, and maintenance of the Iloilo Airport costs P9.95 billion; while Prime Asset Venture, Inc.’s tender is valued at P6.89 billion.

The proposed airport expansion includes upgrading of Passenger Terminal Building (PTB), construction of an apron adjacent to PTB, installation of required equipment for passenger services, and modernization of appurtenant facilities.