Iloilo airport PPP failure not a loss, says DEPDev-6

By Rjay Zuriaga Castor

ILOILO CITY – The failure of the proposed privatization of the Iloilo International Airport does not amount to a loss for Iloilo, but could instead reflect the level of private-sector interest in taking over the facility, the Department of Economy, Planning, and Development Region 6 (DEPDev-6) said.

DEPDev-6 Director Arecio Casing Jr. said the withdrawal or failure of a private proposal does not necessarily mean Iloilo lost an opportunity, particularly if the proponent was not prepared to pursue the project to completion.

“Well, not really, if there was interest really in the first place, they would have really pushed through, but I think that would show the level of interest as well,” he said at a press conference last Sept. 1.

The unsolicited proposal of Prime Asset Ventures Inc. (PAVI), a subsidiary of the Villar Group, to rehabilitate and operate the Iloilo airport had been pursued for several years.

PAVI first submitted the proposal in 2019 and later secured original proponent status.

Negotiations were completed in September 2024, but the proposal did not advance after PAVI and the government failed to reach an agreement.

The Department of Transportation (DOTr) rejected the proposal in April 2026.

The proposal, valued at PHP 21 billion, was subsequently removed from the Public-Private Partnership (PPP) Center’s project list.

The Iloilo International Airport, located in Cabatuan, Iloilo, serves as the main air gateway to Western Visayas.

Casing said the setback has not closed the door to private-sector participation in the Iloilo airport.

He said the airport is now open to another approach, with the DOTr weighing whether the project should proceed as a solicited or unsolicited PPP.

“Iloilo airport is now open, so right now DOTr is [looking at whether] it becomes a solicited or unsolicited proposal,” he said.

Casing said the government appears to be leaning toward the solicited PPP route, under which the government defines the project requirements and invites qualified private companies to compete for the concession.

He also noted that the solicited process could widen the pool of potential investors rather than tie the project to a single private proponent.

Casing pointed to the experience of other Philippine airports placed under PPP arrangements, including Mactan-Cebu International Airport and Ninoy Aquino International Airport.

“We have seen examples of privatized airports, so one good example is Mactan-Cebu Airport, and we have seen how it has given the riding public better service,” he said.

He also cited Clark International Airport and the recently privatized Laguindingan International Airport as benchmarks for assessing whether private-sector participation can improve airport operations and passenger experience.

For Casing, the fundamental consideration in pursuing a PPP is whether private participation can deliver better public service.

“I think with the concept of PPP, essentially, [it] is really to provide better services. If the government thinks that the private sector can do better than that, I believe that is an option,” he said.