Iloilo airport upgrade may follow NAIA, Mactan PPP blueprint

By Rjay Zuriaga Castor

ILOILO CITY – The successful modernization of Ninoy Aquino International Airport (NAIA) and the concession of Mactan-Cebu International Airport (MCIA) could serve as the blueprint for the long-awaited upgrade of Iloilo International Airport, the Public-Private Partnership (PPP) Center said.

PPP Center Executive Director Rizza Blanco-Latorre said the government is revisiting airport PPP models following the success of the MCIA concession and the privatization of NAIA, which have become benchmarks for future airport projects.

“The good thing about the situation now is that we already have two very successful airport PPPs — MCIA and the modernization of NAIA. On the government’s side, we have become more knowledgeable about how airport PPPs should be developed,” she said during the Infrastructure Forum 2026 on July 30.

Blanco-Latorre said unsolicited airport proposals that had remained pending for years are now being reassessed using the standards established by the two airport projects.

“That’s why the unsolicited proposals that had been pending for a long time are now being reviewed again. We now have more success stories that serve as benchmarks. If a proposal does not meet the government’s standards or requirements, that’s where issues arise,” she added.

MCIA is operated by Aboitiz InfraCapital, which acquired the remaining stake of the GMR-Megawide consortium in late 2024 under the airport’s 25-year concession agreement.

The MCIA project was implemented through a solicited PPP, in which the government identified the project, prepared the feasibility study and bidding documents, and awarded the concession through competitive bidding.

The NAIA modernization was likewise undertaken as a solicited PPP project valued at PHP 170.6 billion.

The National Economic and Development Authority Board, now the Department of Economy, Planning, and Development (DEPDev) Board, approved the NAIA project before it was opened to competitive bidding.

San Miguel-led New NAIA Infrastructure Corp. emerged as the winning concessionaire for the airport’s rehabilitation, operation, and maintenance.

Under the PPP Code, or Republic Act 11966, a solicited PPP is initiated by the government after the implementing agency identifies a priority infrastructure project.

The government prepares the feasibility study, concession terms, and bidding documents before opening the project to qualified bidders through a competitive public bidding process.

By contrast, an unsolicited PPP originates from the private sector, with a company submitting a project proposal without a prior government request.

The private proponent prepares the project concept and supporting studies, which are then evaluated and negotiated by the government.

If negotiations succeed, the proponent is granted original proponent status before the project undergoes a comparative challenge, also known as a Swiss challenge, allowing other firms to submit competing offers while giving the original proponent the right to match the best bid.

Blanco-Latorre confirmed that the unsolicited proposal submitted by Prime Asset Ventures Inc. (PAVI) of the Villar Group for the modernization of Iloilo International Airport is no longer under consideration.

“My understanding from the Department of Transportation (DOTr) is that there was an unsolicited proposal. PAVI was granted original proponent status, and the parties proceeded to negotiations, but they did not reach an agreement,” she said.

Earlier reports said PAVI’s proposal was discontinued after it failed to secure an endorsement from DEPDev, which must approve projects costing more than PHP 15 billion.

PAVI first submitted its unsolicited proposal in 2019 and was granted original proponent status for the project, a PHP 21.16-billion rehabilitation, expansion, operation, and maintenance package structured as an operate-and-transfer scheme, with the DOTr and the Civil Aviation Authority of the Philippines as implementing agencies.

The Villar-led company completed negotiations with the government in September 2024, but the parties ultimately failed to reach a final agreement.

Blanco-Latorre said the DOTr is now considering pursuing the airport’s modernization through a solicited PPP.

“I am getting updates specifically on the status of the Iloilo Airport project because, based on my last discussion with the DOTr, they are considering pursuing it as a solicited project. That means it will be the government that will bid it out to encourage greater competition, because there are many private sector players interested in participating in airport projects following the success of the last two airport PPPs,” she said.

Despite the setback involving the unsolicited proposal, Blanco-Latorre said the Marcos administration considers the modernization of Iloilo International Airport “a priority” and intends to implement the project as soon as possible because it is “long overdue.”

“We are regularly coordinating with DOTr to fast-track our priority airports,” she said.

Blanco-Latorre also disclosed that three airport PPP projects are expected to undergo competitive bidding this year, although she did not identify the airports.

Iloilo International Airport, located in Cabatuan, Iloilo, opened in 2007 and serves as the principal gateway to Western Visayas.