Governor wants faster Iloilo airport privatization

By Rjay Zuriaga Castor

The indicative timeline to privatize the Iloilo International Airport in Cabatuan in the first quarter of 2025 is not ideal, according to Governor Arthur Defensor Jr.

In a Thursday press conference, Defensor said that the Public-Private Partnership (PPP) for the airport’s expansion might be implemented earlier.

“It’s not ideal. We can make it faster since the unsolicited proposal (USP) has been there,” he said.

The governor also believes that the May 14 Senate inquiry should have prompted the Civil Aviation Authority of the Philippines (CAAP) and the Department of Transportation (DOTr) to expedite the airport’s privatization process.

According to the DOTr, Prime Asset Ventures Incorporated, a subsidiary of the Villar Group of Companies, submitted a USP for the airport’s PPP program in 2019, making it the original proponent for its operation, maintenance, and expansion.

Aboitiz InfraCapital Inc. of the Aboitiz Group also submitted a USP in April 2023 to undertake the redevelopment of the Iloilo Airport.

Defensor mentioned that he visited the PPP Center last week to learn the status of the airport’s expansion and upgrade.

“I was told that under the new law, the proposal of the company is under negotiation. They have until September to negotiate the terms, and after September, once we have resolved it, this can be subject to challenge for another 120 days,” he said.

Defensor added that with the Senate’s intervention in the airport’s privatization, the process might be fast-tracked.

The DOTr previously clarified that the PPP for Iloilo Airport, initially proposed under the old Build-Operate-Transfer Law, is now governed by the new PPP Code, Republic Act No. 11966.

This new PPP Code was enacted on December 5, 2023, with its Implementing Rules and Regulations becoming effective on April 6, 2024.

The privatization negotiation process for the airport began on April 26 and is scheduled to last 80 calendar days, with a possible extension to 150 days.

After the negotiations are finalized, the project will be submitted for approval to DOTr Secretary Jaime Bautista and the CAAP Board before undergoing a Swiss challenge.