‘WITH OR WITHOUT PPP’: DOTr keen on Iloilo Airport upgrade, earmarks P650-M in 2025 budget

By Rjay Zuriaga Castor

The Department of Transportation (DOTr) will push through with the planned upgrades to Iloilo International Airport in Cabatuan, regardless of the outcome of the unsolicited proposal (USP) for its rehabilitation and expansion.

Felicisimo C. Pangilinan Jr., director of the DOTr’s Planning Service, told Daily Guardian that PHP 645 million has been allocated to the National Expenditure Program (NEP) for 2025.

Pangilinan detailed that the budget will fund the expansion of the passenger terminal building (PTB), the apron, and improvements to the runway’s asphalt overlay.

“For 2025, with or without the Public-Private Partnership (PPP) proposal, we included  PHP 645 million in the NEP for the airport’s major upgrades,” he said.

In June, the Department of Budget and Management submitted the proposed PHP 6.352 trillion national budget for 2025 to the House of Representatives.

“Hopefully, in 2025, it will be given due course. The decision is now with Congress. If approved, it will be a significant boost to the economy of Iloilo and Western Visayas,” Pangilinan added.

He urged lawmakers from Iloilo to support the budget, citing that the DOTr has already allocated the necessary funds to the NEP.

Pangilinan also mentioned ongoing negotiations with Prime Asset Ventures, Inc. (PAVI), a subsidiary of the Villar Group of Companies, which submitted a USP in 2019 and was granted original proponent status to operate, maintain, and expand the airport.

Negotiations are currently at the Parameters, Terms, and Conditions (PTC) stage, where the government and PAVI are finalizing the project’s scope, financial agreements, contractual terms, performance standards, and risk allocations.

“If the negotiation is successful, the proposal will move to the National Economic and Development Authority (NEDA) board for approval,” Pangilinan said, adding that they aim to conclude negotiations this month.

The PPP project for the Iloilo Airport is valued at PHP 12.79 billion and includes expanding the PTB’s capacity, constructing an apron adjacent to the new PTB expansion, and maintaining the existing terminal building.

In addition to the PPP, the airport has been allocated PHP 190.56 million under the General Appropriations Act of 2024 for repairs and improvements.

NEDA-6 Director Arecio A. Casing Jr. announced that rehabilitation and improvement work, including the installation of three additional 600-kW chillers costing PHP 143.01 million, will begin in December.

The PHP 50-million asphalt overlay of the runway is also set to start by the end of the year.

Meanwhile, Pangilinan said the Civil Aviation Authority of the Philippines conducted a pre-procurement process on September 5 and is awaiting the next schedule from the bids and awards committee.