The move to unbundle the regional airport-development deals under the key infrastructure program is only wise if the government decides to widen the scope of the projects to include the conversion of the air hubs from domestic to international gateways.
Avelino L. Zapanta, an industry pillar and an aviation professor, said the government must consider sweetening the deal by allowing the investors to open up the airports to international traffic.
“I think that the move is positive if the airports like Bacolod, Iloilo, Tagbilaran and Laguindingan would be brought up to international airport category. These cities are international tourist destinations. It will be to our advantage if they [airline carriers] are flown nonstop from their foreign origins to those tourist destinations,” he told the BusinessMirror.
The government is reportedly mulling over the unbundling of the P108.2-billion regional airport-development program and bid out each of the five contracts separately starting March.
The previous administration started the auction for the contract to develop and operate five airports around the Philippines in two packages to make it more enticing to investors.
The first package consists of the Bacolod-Silay Airport, P20.26 billion; and Iloilo Airport, P30.40 billion, while the second bundle is composed of the New Bohol or Panglao Airport, P2.34 billion; Laguindingan Airport P14.62 billion; and Davao Airport, P40.57 billion.
The private partner will undertake the operation and maintenance of the airport, as well as provide additional facilities and other necessary improvements to enhance passenger safety, security, access, passenger and cargo movement efficiency, and operational efficiency under a defined concession period.
A quick check at the Public-Private Partnership (PPP) Center’s web site showed that the airports’ conversion to international gateways is not included in the contracts. Zapanta explained it will be beneficial for all stakeholders should this be included in the contracts.
“It will be attractive and convenient for the tourists, and it will decongest our gateways, e.g., Manila and Cebu. It’s a win-win situation for all concerned,” Zapanta said. There were five prequalified bidders for the project, namely:
Filinvest-Jatco-Sojitz Consortium (Filinvest Development Corp., Filinvest Land Inc., Filinvest Alabang Inc., Japan Airport Terminal Co. Ltd. and Cyberzone Properties Inc.); GMR Infrastructure and Megawide Consortium (Megawide Construction Corp., GMR Airport Developers Ltd., GMR Hyderabad International Airport Ltd. and Delhi International Airport Ltd.); Maya Consortium (Aboitiz Equity Ventures Inc.; Vinci Airports SAS, ANA-Aeroportos de Portugal SA, Vinci Construction Grands Projets SAS, Therma South Inc. and Hedcor Sibulan Inc.); Philippine Airports Consortium (Metro Pacific Investments Corp., Aeroports de Paris and ADP Ingenierie); and SMHC-IIAC Airport Consortium (San Miguel Holdings Corp., Incheon International Airport Corp., Star Infrastructure Development Corp. and Citra Metro Manila Tollways Corp.)
The Bacolod Airport, also known as the Bacolod-Silay Airport, commenced operations in 2008, and is one of the recently completed airports in the Philippines with modern facilities. The airport is in Silay City, Negros Occidental, and generally caters to traffic for Negros Island—including Bacolod City—which is one of the most populous cities in the Western Visayas region.
Tourism is one of the main industries in Negros Occidental and is fast growing, with domestic tourists reaching 1.33 million in 2013.
The Iloilo Airport, on the other hand, is in Cabatuan, province of Iloilo, and is among the top 5 airports in the Philippines in terms of traffic data. It started its commercial operations in 2007, providing both domestic and international connectivity with seven domestic destinations and two international destinations. The airport served roughly 1.87 million passengers in 2013. Seen to start its commercial operations by 2017, the P3.36-billion New Bohol Airport in Panglao is designed to accommodate one million passengers annually. The contract to construct new aviation hub in Bohol was awarded to Japanese joint venture of Chiyoda Corp. and Mitsubishi Corp. last month.Found on the northern tip of Misamis Oriental, the Laguindingan Airport has a design capacity of accommodating 1.6 million passengers annually. It started its operations in 2013. It replaced the Lumbia Airport in Cagayan de Oro, which was among the five busiest airports in the Philippines in terms of passenger traffic. Also known as Francisco Bangoy International Airport, Davao airport is the third-busiest airport in the Philippines after the Ninoy Aquino International Airport and the Mactan-Cebu International Airport. Located in Catitipan, Davao City, the airport has been operational for more than 15 years, currently serving both domestic and international operations. The Davao region is one of the faster-growing tourism destinations in the country, with passenger traffic settling at 2.79 million in 2013.
14 January 2017
By Lorenz S. Marasigan
