BY GEROME DALIPE IV
ILOILO City – Mayor Jerry Treñas expressed optimism and gratitude as the proposed P21-billion rehabilitation of the Iloilo International Airport nears approval.
The project, a public-private partnership (PPP) with the Villar Group, is expected to modernize the airport’s outdated facilities, resolve operational issues, and meet global standards.
“For years, our airport has struggled with outdated facilities and operational issues. This public-private partnership with the Villar Group will not only address these concerns but will also modernize the airport to meet global standards, accommodate more flights, and enhance passenger experience,” Treñas said in a statement.
Transformative vision for Iloilo
Treñas said the project is a “game-changer” for Iloilo, positioning it as a premier destination for business and tourism.
“This project is a game-changer for Iloilo, strengthening our position as a top destination for business and tourism. I thank the Department of Transportation, the PPP Center, and everyone working to make this vision a reality,” he added.
The mayor emphasized the critical role the airport plays in boosting economic growth and tourism in Iloilo and the Western Visayas region.
He expressed confidence that privatization would lead to modernized facilities, improved services, and a stronger appeal to international travelers and investors.
The project aligns with national efforts to attract private sector investment in critical infrastructure, enhancing operational efficiency and ensuring sustainable growth, the mayor added.
“Iloilo City deserves a world-class airport that reflects the vibrant and progressive spirit of our people,” said Treñas.
The proposed P21-billion rehabilitation of the Iloilo International Airport has entered a critical stage following the successful completion of its negotiation phase on September 16, 2024, according to Jeffrey Manalo, Deputy Executive Director of the Public-Private Partnership (PPP) Center.
Manalo confirmed that the project proposal is now set for submission to the NEDA Investment Coordination Committee (ICC) for review and approval.
Manalo explained that government regulations mandate proposals exceeding P15 billion to undergo scrutiny by the NEDA ICC and recommendation for approval by the NEDA Board.
The project, proposed by Premiere Airport Ventures Inc. (PAVI), aims to modernize and expand the airport, making it a top-tier facility for both business and tourism.
Following NEDA’s approval, the project will enter a competitive challenge period lasting 90 days to one year.
During this time, other firms can submit competing proposals, although PAVI, the original proponent, will retain the right to match any superior offers.
The rehabilitation project will see significant upgrades to the Iloilo International Airport’s infrastructure, including expansion of passenger terminals, upgraded runway and taxiway systems, advanced technologies, and enhanced amenities.
PAVI’s proposal includes a comprehensive plan under an Operate-and-Transfer (OAT) contractual agreement, aimed at improving the operational capabilities of the Civil Aviation Authority of the Philippines (CAAP) while modernizing the airport’s infrastructure.
PAVI will oversee the management and upkeep of passenger terminals, equipment, and facilities throughout the entire concession period.
A long-anticipated milestone
PAVI first submitted an unsolicited proposal to operate, maintain, and expand the airport in 2018, backed by an authorized capital of P10 billion, 99.99 percent of which is owned by the Villar family.
However, the project faced delays due to the enactment of Republic Act 11966, the Public-Private Partnership (PPP) Code of the Philippines, which came into effect on December 23, 2023.
The Implementing Rules and Regulations (IRR) of the PPP Code were only finalized on April 7, 2024.
The new PPP Code introduces updated guidelines for implementing PPP projects, including a comprehensive evaluation of their legal, technical, economic, financial, and commercial feasibility.
It mandates NEDA’s approval for projects exceeding P15 billion, ensuring that the public sector’s interests are protected.
The Department of Transportation (DOTr) is targeting the awarding of the project to a private entity by the first quarter of 2025.
Following this, the project will proceed according to the updated procedures under the new PPP Code to meet all legal, technical, and sustainability requirements.
Commitment beyond his term
As Treñas’s mayoral term ends in June 2025, he expressed confidence in the continued progress of the project under Vice Mayor Jeffrey Ganzon, his daughter Raisa Treñas, and the Team Uswag.
“I am confident that (Vice Mayor Jeffrey) Ganzon, my daughter Raisa Treñas, and the Team Uswag will help ensure this project’s smooth progress,” said Treñas.
The rehabilitation project is expected to bring state-of-the-art facilities, expanded capacity, and improved services to Iloilo’s gateway to the world./PN
