Villar firm denied Iloilo airport proposal, gov’t seeks other bids
The government has denied the Villar Group its first airport project and would instead accept offers from other proponents in line with its direction to privatize the country’s gateways.
The government has declined the Villar Group's proposal to take over the Iloilo International Airport, opting instead for a solicited bidding process. This decision aligns with the government's plan to privatize the country's major air travel hubs. The Department of Transportation (DOTr) will now handle the airport's operations and maintenance through a solicited process, rather than accepting the Villar Group's original offer.
The Villar-owned builder Prime Asset Ventures Inc. (PAVI) initially held the proposer status (OPS) for the project, which aimed to expand the airport's capacity to accommodate growing traffic. However, PAVI's offer, valued at P21.27 billion, was unsuccessful. The Iloilo International Airport currently operates at over twice its designed capacity, with passenger traffic averaging 2.79 million annually, according to the Institute of Contemporary Economics (ICE).
This capacity issue costs Iloilo at least P1 billion annually, as airlines are unable to add new flights, limiting options for travelers. By employing a solicited bidding process, the DOTr is confident they can attract fresh investment, having successfully implemented this approach in the privatization of Ninoy Aquino International Airport.
The government's accumulated experience in managing public-private partnerships (PPP) for airports has made them more equipped to handle solicited processes. PAVI could still pursue an airport project if the government approves their P11.63-billion proposal to renovate the Puerto Princesa International Airport in Palawan.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
