Villar Firm's Iloilo Airport Proposal Rejected; Govt Seeks Other Bids

The Department of Transportation (DOTr) has terminated the Original Proponent Status (OPS) of the Villar Group for the operations and maintenance of the Iloilo International Airport. This move aligns with the government's direction to privatize the country's gateways through a solicited process, where new bids will be sought from other private entities. Prime Asset Ventures Inc. (PAVI), a company under the Villar Group, had initially secured the OPS with a P21.27 billion proposal aimed at expanding the airport's capacity to accommodate future traffic. However, the airport's passenger terminal building, designed for 1.2 million guests annually, has been recently handling an average of 2.79 million. According to an analysis by the Institute of Contemporary Economics (ICE), this lack of capacity is costing Iloilo at least P1 billion annually by limiting travel options due to restrictions on adding new flights. Rizza Blanco-Latorre, executive director of the Public-Private Partnership (PPP) Center, stated that the DOTr is more confident in pursuing solicited projects for airports moving forward. This confidence stems from the successful implementation of large-scale PPPs, such as the Ninoy Aquino International Airport (NAIA) concession, which was awarded to a San Miguel Corp.-led group in 2024 for P170.6 billion. Blanco-Latorre added that the government has accumulated significant experience in processing PPPs for airports over the years, enhancing its capability for solicited processes. PAVI may still have an opportunity to add an airport project to its portfolio if the government approves its P11.63 billion offer to rehabilitate the Puerto Princesa International Airport in Palawan. This decision highlights the government's approach to infrastructure development through PPPs and its strategy for engaging the private sector in modernizing and expanding regional airports, which are crucial for economic growth and tourism.