Iloilo City: The Department of Transportation (DOTr) will prioritize the Iloilo International Airport in Cabatuan town in the government's privatization efforts. DOTr Secretary Vivencio Dizon, joined by other officials of the department, provided Iloilo Governor Arthur Defensor Jr., Iloilo City Mayor Jerry Tre±as, and Uswag Ilonggo party-list Rep. James Ang Jr. an update on the unsolicited proposal from the Villar Group.
According to Philippines News Agency, Dizon assured local leaders that the DOTr will fast-track the current Public-Private Partnership (PPP) proposal from the Villar Group to ensure the sustainable development and growth of the airport, which is crucial for supporting the city's growth. Dizon mentioned that they are at a 'very advanced stage' of the proposal and hope to complete it within the year.
In the meantime, PHP190 million in funds from the Civil Aviation Authority of the Philippines will be allocated for repairing and rehabilitating the current airport terminal. These funds will address fixing equipment, escalators, and adding more seats and elevators, among other improvements.
Dizon emphasized that the government would invest about PHP200 million this year. The private proponent is expected to invest approximately PHP15 billion as a mandatory investment, with an initial investment of PHP3.5 billion upon commencement.
Mayor Tre±as, who chairs the Infrastructure Development Committee of the Regional Development Council, highlighted the need for privatization due to the increasing number of flights. He noted that Iloilo is the second busiest airport in Western Visayas, with two million passengers last year, second only to Caticlan.
Governor Defensor expressed interest in the concept of a terminal mall to cater to the cultural habits of Filipinos who often come in large numbers to welcome or send off relatives. He suggested that the expansion of the airport could include a mall, given that the proponent is a mall operator. Defensor hopes for a dialogue with the proponent and the DOTr to explore this idea further.
Dizon mentioned they are open to the terminal mall concept but need to collaborate with the private operator responsible for the master plan until 2035. The aim is to grow the airport's capacity to 10.5 million passengers.
Besides Iloilo, Dizon noted that the privatization of airports in Davao and other major tourist destinations, such as Siargao, Kalibo, Bacolod, and Dumaguete, is also being considered. He stated that the President has instructed that privatization is the way forward.
