Senate presses for faster repair of Iloilo Airport

By Rjay Zuriaga Castor

Several senators have urged the Civil Aviation Authority of the Philippines (CAAP) and the Department of Transportation (DOTr) to expedite the rehabilitation of the malfunctioning facilities at the Iloilo International Airport in Cabatuan town.

Senator Grace Poe, chair of the Senate Committee on Public Services, questioned the two departments about the delay in the airport’s repair and expansion despite the P190 million budget allocated under the national government’s 2024 Aviation Transport Infrastructure Program.

“Why is the Public-Private Partnership (PPP) taking too long, and why didn’t you have the required documents so that the P190 million could have been utilized immediately?” she asked during an inquiry on the state airports in the country on Tuesday, May 14.

Poe also criticized the budget release delays, although the DOTr had already downloaded the funds to CAAP.

CAAP Director General Manuel Antonio Tamayo confirmed that the P190 million had been downloaded and approved for procurement on May 7.

“We already scheduled this for procurement, and the date given was sometime in August 2024,” he added, emphasizing that they are expecting three new chillers to arrive in June or July.

From the P190 million budget, CAAP said it will procure three additional chillers, citing that although only five are needed in the airport based on its design.

Senate President Juan Miguel “Migz” Zubiri noted potential procurement delays and estimated that all work would be completed by November or year-end.

“Imagine you have to suffer eight months before the actual procurement or implementation of the new escalators, elevators, and air conditioning units,” he added.

Zubiri suggested to CAAP to purchase at least 10 three-ton split-type air conditioners to improve passenger comfort in the interim.

“Maybe we can do bandage solutions, but at least the people are more comfortable,” he added.

Tamayo responded that the procurement of split-type air conditioners “is possible.”

He added that CAAP-6 was already authorized to conduct emergency procurement of Iwata air coolers.

Iloilo City Mayor Jerry Treñas criticized the unspent P190 million budget for airport upgrades, questioning the delay and calling for immediate action.

“It’s now May, and almost half of the year is gone, and we have not made use of the amount; we haven’t even started using it. When are we going to start? Sayang naman […] Is this going to earn interest if we keep this in a bank?” the city mayor said.

He expressed concerns over the lack of visible improvements and urged the DOTr and CAAP to utilize the funds while discussing the PPP for airport expansion.

Earlier in April, the city mayor received several complaints alleging that all air conditioning systems, from check-in to the pre-departure area, and the escalators are out of order while passengers are reeling from the effects of the dangerous heat index in Iloilo.

He further urged the DOTr and CAAP to finally decide to use the funds from the national government while they are trying to decide how to proceed with the PPP project for the Iloilo Airport.

According to the DOTr, Prime Asset Ventures Incorporated (PAVI), a subsidiary of the Villar Group of Companies, was the first to submit an unsolicited proposal (USP) on the Public-Private Partnership (PPP) for the airport’s expansion.

PAVI’s USP, submitted in 2019, is valued at P6.89 billion. Its unsolicited bid to operate, maintain, and expand the Iloilo Airport was given the original proponent status (OPS) by the DOTr.

In April 2023, Aboitiz InfraCapital Inc. of the Aboitiz Group also submitted a USP to take on the redevelopment, valued at P9.95 billion.

“When is DOTr finally going to award the interested party for the PPP for the airport?” Treñas further remarked.

The city mayor’s statement comes on the heels of the DOTr’s response that it “envisages the award of the project to the private sector within the 1st quarter of 2025.”

The delay in the privatization is due to the new PPP Code or Republic Act No. 11966, which was signed into law on December 5, 2023 and its Implementing Rules and Regulations took effect on April 6, 2024.

On April 26, the DOTr, CAAP, and PPP Center had already started the negotiation period of the airport’s privatization. The negotiation period will take 80 calendar days and can be extended to 150 calendar days.