REHAB RESET: Government-led upgrade eyed for Iloilo airport expansion

By Rjay Zuriaga Castor

The government is weighing a revised approach for the long-planned upgrade and expansion of the Iloilo International Airport, as authorities consider moving the project under a solicited public-private partnership scheme.

The Civil Aviation Authority of the Philippines said the Department of Transportation is now studying the solicited mode for the operation and maintenance of the airport, which serves as the major gateway for Western Visayas.

“The DOTr is seriously considering solicited mode,” CAAP Deputy Director-General Danjun G. Lucas said in an April report by BusinessWorld.

Under a solicited proposal, the implementing agency — in the Iloilo airport’s case, the DOTr and CAAP — identifies the project and includes it in its PPP project list before procurement starts.

The government then prepares the project and invites bids or proposals from interested private partners.

An unsolicited proposal, by contrast, occurs when a private proponent submits a project on its own initiative, without a prior government request for that specific project.

Such a proposal goes through a completeness check and review and, if accepted, may be published and processed under PPP rules.

The unsolicited proposal of PAVI has already been removed from the project list on the PPP Center website.

The firm was junked after its proposal lacked an endorsement to the Department of Economy, Planning, and Development, according to Lucas.

He noted that while PAVI’s proposal was junked, the firm can still refile.

PAVI first submitted its unsolicited proposal in 2019 and was granted original proponent status for the project.

The Villar-led firm completed negotiations for its proposal in September 2024.

The Iloilo airport upgrade is estimated to cost over PHP 20 billion, with key features including the expansion of the passenger terminal building, construction of an adjacent apron, renovation of the existing terminal, and installation of advanced equipment to enhance passenger services.

Whether through a public-private partnership or not, the DOTr earlier said investments in airport facilities will proceed using a PHP 190-million allocation under the 2024 General Appropriations Act through the CAAP.

The CAAP has since conducted repair and rehabilitation works at the terminal, including improvements aimed at enhancing passenger experience, such as additional seating and the repair of escalators and elevators.

No specific funding was allocated for the Iloilo airport in the approved 2026 national budget.