PH picks up slack for airport privatization delays

The Department of Transportation (DOTr) said it was ready to fund the expansion of key provincial airports should a host of unsolicited offers for privatization falls through.

Improvements at some of the regional gateways have been pushed back for years due to a series of policy changes under the current administration.

So far, the unsolicited offers of the Aboitiz Group for the Bohol-Panglao International Airport and Dennis A. Uy-led Chelsea Logistics and Infrastructure Holdings Corp. for Davao International Airport have been endorsed to the National Economic and Development Authority for final approval.

But at least seven other offers for provincial airports are either pending with the DOTr or have to be resubmitted by their proponents after the government, in June, required them to take on more risks.

“Whether they push through or not, we’re doing it,” Manuel Tamayo, DOTr undersecretary for aviation, said last week.

DOTr did not say how it would fund such projects.
The DOTr is currently reviewing the Aboitiz Group’s offer for the Laguindingan Airport, located in Misamis Oriental and a gateway to northern Mindanao, DOTr Undersecretary for planning Ruben Reinoso said on Saturday.

Aboitiz had said Laguindingan Airport, which opened in 2013, served two million passengers last year—above its design capacity of 1.6 million.

Apart from Davao Airport, Uy’s group had also submitted offers for Bacolod-Silay Airport and the Busuanga Airport.

Manuel Villar Jr.’s group, meanwhile, is seeking to operate and develop Iloilo International Airport and Puerto Princesa International Airport.

Philippine Airport Ground Support Solutions Inc., controlled by businessman Jefferson Cheng, made an offer for Siargao’s Sayak Airport while the group of Mega 7 Construction Corp. bid for Kalibo International Airport.

Reinoso said the DOTr was also waiting for other groups to resubmit their offers.

The delays come as the administration required all unsolicited offers for existing gateways to follow the wording of the concession of the recently privatized Clark International Airport in Pampanga province.

One of the features of the Clark concession was a condition that would trigger compensation or support for the private concessionaire, otherwise known as material adverse government action.