Villar Group Moves Closer to Iloilo Airport Takeover

By Rjay Zuriaga Castor

A subsidiary of the Villar Group of Companies has advanced in its bid to operate and maintain the Iloilo International Airport, with its unsolicited proposal succeeding in the negotiation phase.

Public-Private Partnership (PPP) Center Deputy Executive Director Jeffrey Manalo confirmed that the Prime Asset Ventures, Inc. (PAVI) Consortium finalized negotiations on September 16, 2024.

“The next step is submission to the appropriate approving body. The implementing agencies are the Department of Transportation (DOTr) and the Civil Aviation Authority of the Philippines,” Manalo said in a BusinessWorld interview.

Despite this confirmation, the PPP Center has yet to update the project status on its website.

Negotiations for the airport’s rehabilitation began on April 19, 2024.

The PHP 14.7-billion project must be reviewed by the National Economic and Development Authority (NEDA) Investment Coordination Committee before receiving final approval from the NEDA Board.

Once approved, a minimum 90-day comparative challenge period will follow, during which competing bids will be assessed against the original unsolicited proposal. Options include accepting the original proposal, a competing proposal, both, or neither.

PAVI first submitted its unsolicited proposal in 2019 and was granted original proponent status to operate, maintain, and expand the Iloilo Airport.

The PHP 12.79-billion PPP project includes expanding the Passenger Terminal Building (PTB), constructing an apron adjacent to the new PTB, renovating the existing terminal, installing passenger service equipment, and maintaining terminal utilities throughout the concession period.

In addition to the PPP project, the Iloilo Airport has a PHP 190.56-million allocation under the 2024 General Appropriations Act for repairs and improvements. Of this, PHP 141 million is earmarked for PTB rehabilitation and improvement, with bidding invitations already posted by the DOTr.

For 2025, the DOTr has allocated PHP 645 million for further upgrades as part of the National Expenditure Program.

DOTr Planning Service Director III Felicisimo C. Pangilinan Jr. assured that upgrades for the Iloilo Airport will proceed regardless of the PPP project due to annual budget allocations.

The Iloilo Airport is among 48 infrastructure projects exempted by the Commission on Elections from the public works ban during the 2025 midterm elections.

With these developments, the airport is on track to become a modernized gateway, reflecting both public and private sector investment.