Iloilo Airport privatization targeted for early 2025

By Joseph Bernard A. Marzan

The Department of Transportation (DOTr) has initiated negotiations for a Public-Private Partnership (PPP) project to operate the Iloilo International Airport in Cabatuan, aiming to award the contract by the first quarter of next year.

Enrique Antonio Esquivel, DOTr Assistant Secretary for Aviation and Airports, outlined the timeline of the privatization project in a May 6 letter.

The PPP project, involving the DOTr, its attached agency the Civil Aviation Authority of the Philippines (CAAP), and the PPP Center, began on April 26 and is expected to last between 80 to 150 days.

Initially introduced as an Unsolicited Proposal (USP) under Republic Act No. 6957 (Build-Operate-Transfer Law), the project now adheres to the provisions of Republic Act No. 11966 (PPP Code), whose implementing rules and regulations took effect on April 6 of this year.

The privatization proposal, valued at P15 billion, is expected to receive approval from the DOTr Secretary and the CAAP Board.

Following this, a 90-day comparative challenge will occur, where potential bidders will present their proposals against the USP proponent.

“The DOTr shares the desire of the people of Iloilo City and the Province for a renewed, modernized, expanded, sustainable, and future-proof Iloilo Airport. We likewise acknowledge the importance of a revitalized ILO to sustaining economic growth and activity in the City and Province of Iloilo and the greater Region VI,” Esquivel said in his letter.

The USP was submitted by Prime Asset Ventures Inc. (PAVI), a subsidiary of the Villar Group of Companies, which is owned 99.99 percent by former senator and current Nacionalista Party president Manuel Villar.

According to recent press appearances by Iloilo City Mayor Jerry Treñas, other interested bidders include Aboitiz InfraCapital, which currently operates the Mactan Cebu International Airport, and Megaworld, which has a presence in Iloilo City.

Treñas expressed optimism that the privatization project would advance swiftly, following weeks of public appeals by the city government and private sector groups urging DOTr Secretary Jaime Bautista to enhance the airport’s facilities and expedite its privatization.