Kalibo International Airport Removed from PPP Project List

By Rjay Zuriaga Castor

The proposed privatization of Kalibo International Airport (KIA) in Aklan has been removed from the government’s list of Public-Private Partnership (PPP) projects despite earlier announcements of a 2025 awarding.

As of April, the PHP3.62-billion unsolicited proposal for the airport’s upgrade, expansion, operation, and maintenance is no longer included in the PPP Center’s project pipeline.

The PPP Center confirmed the removal in a document shared with reporters, although no explanation was provided for the delisting.

Mega7 Construction Corp. submitted the proposal in 2018 and was granted original proponent status (OPS) by the Department of Transportation (DOTr) the same year.

The project involved operating and maintaining the existing airport facility and included system upgrades and the construction of a new terminal building.

Valued at PHP3.62 billion, the project was structured under a Build-Operate-Transfer (BOT) scheme with a maximum cooperation period of 50 years.

Mega7 Construction is a Manila-based company jointly owned by Digichive Philippines Corp., a marketing and advertising firm, and Dominion Intertrade Corp., a general wholesale merchandise company.

Prior to 2018, the DOTr rejected an earlier version of the proposal due to Mega7’s lack of experience in airport development and operations.

Formal negotiations for the project began on April 29, 2024, with a previous target date of September 2, 2024, to finalize the deal.

Last year, reports confirmed that the government aimed to award the KIA privatization contract in 2025.

The delisting comes amid declining airline activity at the airport.

On February 28, 2025, Philippine Airlines discontinued its Kalibo–Manila route due to low demand.

KIA and the nearby Caticlan Airport (Godofredo P. Ramos Airport) serve as key gateways to Boracay Island, one of the Philippines’ top tourist destinations.

Currently, KIA operates only one domestic route to Manila through other airline carriers and a single international route to South Korea.

The travel time from Caticlan Airport to the Caticlan Jetty Port—Boracay’s primary access point—is about 20 to 30 minutes.

By contrast, traveling from KIA to the jetty port takes roughly 2 to 2.5 hours by bus or van.

In March, the Philippine Chamber of Commerce and Industry–Aklan passed a resolution urging the Civil Aviation Authority of the Philippines and the DOTr to designate KIA as the province’s primary and exclusive international airport.

“Designating KIA as the primary and exclusive international airport of Aklan would align with the government’s objective of enhancing connectivity and accessibility for both local and international travelers,” the resolution stated.

The group also pushed for regulatory and infrastructure support to transform KIA into a modern international hub.

The same resolution backed KIA’s privatization, citing potential benefits such as efficient operations, innovation, sustainability, and stronger regional economic performance.