P21-billion unsolicited OFFER for Prime Asset Ventures, Inc. (PAVI) to develop and operate the Iloilo International Airport was rejected becausefion paper, said the Civil Aviation Authority of the Philippines (CAAP).
CAAP Deputy Director General Danjun G. Lucas said BusinessWorld that PAVI, controlled by Villars, “can always refibut the Department of Transportation (DoTr) is seriously considering the application process.”
CAPA said the group’s proposal has no approval from the Department of Economy, Planning and Development (DEPDev). DEPDev approval is required for projects over P15 billion.
DoTr and CAAP are designated agencies to implement the project.
The rehabilitation, expansion, operation, and maintenance of the Iloilo International Airport is designed as an operational and transfer plan.
PAVI was named as the first promoter of the project, which includes the expansion and renovation of the passenger terminal building.
The company also has the first representative position for the renovation, operation, and maintenance of the Puerto Princesa International Airport which had a project cost of P11.63 billion, according to the Public-Private Partnership Center (PPP Center).
“We have already proven that PPPs are more effective in public infrastructure, which generates revenue and (holds development potential) with the involvement of private companies,” Nigel Paul C. Villarete, senior consultant in public-private partnerships at the technology consulting group Libra Konsult, said of Viber.
Requested PPP projects are initiated by the government, and competitive tenders are issued after the government usually sets project terms of reference and coordinates everything. In contrast, unsolicited PPPs are proposals led by the private sector.
The Iloilo International Airport is considered to have strong revenue generation potential, which makes it attractive for further development through PPP, said Mr. Villarete.
Rene S. Santiago, an international consultant on transportation development and former president of the Transportation Science Society of the Philippines, said the government should continue to pursue its Iloilo International Airport plan.
“In theory, competitive bidding attracts more participants. In the Philippines, I am skeptical when it comes to airports, especially domestic ones,” said Mr. Santiago.
Mr. Libra Konsult’s Villarete said the proposed mode gives the government more flexibilityfiproject goals and inclusion, being responsible for preparing technical and financial studies for procurement.
“Between the requested and unsolicited methods, I would strongly suggest that this be done in the requested mode… (unsolicited) is easier to do since the government will not go through the steps of preparing bids and bidding itself, but it binds the government to the party that sent the proposal,” he said.
Last year, the DoTr said it hopes to have at least 15 airports independent by 2026 as the government seeks to make regional airports more economically viable. – Ashley Erika O. Jose
