Philippines to Accelerate Private Investment for Airport Infrastructure Upgrades

The government plans to solicit from the private sector more airport development projects in support of the Department of Transportation’s (DoTr) plans to upgrade the country’s regional gateways, the Public-Private Partnership (PPP) Center said. “The government in general is looking at doing more solicited projects for airports moving forward. Given the experience that the government has accumulated over the years in processing PPPs, they are more equipped to do solicited (projects),” PPP Center Executive Director Rizza Blanco-Latorre told reporters on the sidelines of an event last week. Airports are being upgraded to handle larger aircraft and improve passenger capacity, thereby boosting tourism. In April, the Civil Aviation Authority of Philippines said the P21-billion unsolicited proposal of Prime Asset Ventures, Inc. to upgrade and operate Iloilo International Airport was rejected due to deficient documentation. Asked whether the government will pursue a solicited route for the Iloilo airport project, Ms. Blanco-Latorre said the DoTr appears inclined to pursue the solicited path. “I would assume that, of course I cannot speak on behalf of the DoTr, but that is what they told us that moving forward for airports, they want to do more solicited,” she said. John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said solicited bids allow the government to define the project scope, service standards, and risk allocation upfront, while encouraging more transparent competition among potential investors. “This is particularly important for airports, where development should be aligned with broader transport, tourism, and regional development objectives,” Mr. Rivera said via Viber. He said regional airports can attract several bidders if the project is commercially viable and well structured, presenting credible passenger growth prospects, tourism demand, clear revenue opportunities, and predictable regulation. “Solicitation alone will not guarantee competition. The quality of project preparation and bankability will ultimately determine investor interest,” he said. — Ashley Erika O. Jose