BY GEROME DALIPE IV
ILOILO City – The planned rehabilitation and expansion of the Iloilo International Airport has gained momentum, with the Civil Aviation Authority of the Philippines (CAAP) successfully concluding negotiations with project proponent Prime Asset Ventures Inc. (PAVI).
Jeffrey Manalo, deputy executive director of the Public-Private Partnership (PPP) Center, confirmed the development, stating that the negotiation phase was successfully completed as of Sept. 16, 2024.
The proposal will now move forward to the National Economic and Development Authority (NEDA) Investment Coordination Committee (ICC) for approval.
“So the next step is they will have to submit it to the appropriate approving body,” said Manalo.
The proposed rehabilitation of the Iloilo Airport, estimated to cost over P20 billion, will require submission to the NEDA-ICC for review and approval, as per government regulations.
Manalo clarified that projects exceeding P15 billion must first be endorsed by the NEDA ICC and recommended for approval by the NEDA Board before proceeding.
Once the NEDA Board grants its approval, the project will enter a comparative challenge period lasting from 90 days to up to one year.
Under this mechanism, other firms can submit competing proposals, but the original proponent, in this case, PAVI, retains the right to match any superior offers.
“The final timeline will be determined as part of the approved parameters, terms, and conditions of the project,” said Manalo.
PAVI has proposed a comprehensive plan to enhance the Iloilo International Airport under an Operate-and-Transfer (OAT) contractual agreement, which aims to improve the operational capabilities of the Civil Aviation Authority of the Philippines (CAAP) while upgrading the airport’s infrastructure.
Among the key features of the project includes the expansion of passenger terminal building.
This includes the construction of additional terminal facilities to meet International Civil Aviation Organization (ICAO) standards and enhanced capacity to accommodate more passengers efficiently.
The improvement also includes building an apron adjacent to the new terminal to support increased aircraft operations. The renovation of the existing terminal also includes upgrading and maintaining the current terminal to ensure its continued functionality and improved passenger experience.
Advanced equipment will also be deployed in the new terminal building to enhance passenger services and ensure operational efficiency.
PAVI will overseeing the management and upkeep of the passenger terminals, equipment, and facilities throughout the entire concession period.
PAVI first submitted an unsolicited proposal to operate, maintain, and expand the Iloilo International Airport in 2018, with an authorized capital of P10 billion.
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, and whose Implementing Rules and Regulations (IRR) took effect on April 7, 2024.
The newly enacted PPP Code introduces updated guidelines for implementing public-private partnership projects, emphasizing on the comprehensive project evaluation, legal, technical, economic, financial, and commercial feasibility.
The implementing agency, such as CAAP, is empowered to identify, assess, approve, negotiate, and award PPP projects. For projects exceeding P15 billion, the approval of the NEDA is mandatory.
The Department of Transportation (DOTr) aims to award the project to a private entity by the first quarter of 2025.
Once approved, the project will follow the updated procedures under the PPP Code to ensure compliance with all legal, technical, and sustainability standards.
The proposed expansion and modernization are crucial to accommodating Iloilo’s growing air traffic demands while ensuring climate resilience, environmental protection, and economic viability./PN
