The long-awaited upgrade of Iloilo International Airport could take a new direction as the government considers using a public-private partnership (PPP) approach modeled after the successful modernization of Ninoy Aquino International Airport (NAIA) and the concession of Mactan-Cebu International Airport (MCIA).
PPP Center Executive Director and Undersecretary Rizza Blanco-Latorre said the two projects now provide concrete references for the government as it evaluates other airport infrastructure ventures. “The good thing about the situation now is that we already have two very successful airport PPPs — MCIA and the modernization of NAIA,” she said during an Infrastructure Forum in Iloilo City on July 30.
RELATED: [Iloilo Pushes for Panay Expressway to Boost Growth in Western Visayas]
Government Eyes Solicited PPP for Iloilo
Under a solicited PPP arrangement, the government takes the lead in identifying a project as a priority before preparing the feasibility study, bidding documents and concession terms. The project is subsequently subjected to competitive public bidding, allowing qualified private-sector groups to compete for the concession.
Blanco-Latorre said the experience from NAIA and MCIA has given authorities a stronger basis for reviewing airport proposals that have remained unresolved for years. The government is now examining whether pending proposals comply with updated standards and requirements.
“Unsolicited proposals that had been pending for a long time are now being reviewed again. We now have more success stories that serve as benchmarks. If a proposal does not meet the government’s standards or requirements, that’s where issues arise,” she said.
MCIA is currently operated by Aboitiz InfraCapital following its acquisition in late 2024 of the remaining stakes held by the GMR-Megawide consortium in the airport’s existing 25-year concession. The GMR-Megawide consortium was a solicited PPP project.
The P170.6-billion NAIA modernization project was likewise developed as a solicited PPP. It received approval from the National Economic and Development Authority Board before undergoing competitive bidding, with the San Miguel-led New NAIA Infrastructure Corp. eventually selected to handle the airport’s rehabilitation, operation, and maintenance.
Iloilo Project Gets Another Route
The possible shift toward a solicited PPP comes after the earlier proposal of Prime Asset Ventures Inc. (PAVI), the infrastructure arm of the Villar Group, failed to progress. Blanco-Latorre confirmed that PAVI’s unsolicited proposal to modernize Iloilo International Airport is no longer being pursued following unsuccessful negotiations with the Department of Transportation (DOTr).
“My understanding from the DOTr is that there was an unsolicited proposal. PAVI was granted original proponent status, and the parties proceeded to negotiations, but they did not reach an agreement,” she said.
PAVI submitted its unsolicited proposal in 2019 and later secured Original Proponent Status. While negotiations were completed in September 2024, the proposal did not move forward, with earlier reports indicating that it lacked the required endorsement from the Department of Economy, Planning, and Development.
The DOTr is now considering a government-initiated bidding process for the airport project. “Based on my last discussion with the DOTr, they are considering pursuing it as a solicited project,” Blanco-Latorre said.
She said the approach could open the project to wider private-sector participation, particularly as the results of the NAIA and MCIA projects have helped generate greater investor interest in airport infrastructure.
Despite the setback involving the previous proposal, Blanco-Latorre said the Marcos administration continues to consider the modernization of Iloilo International Airport “a priority,” describing the project as “long overdue.”
“We are regularly coordinating with DOTr to fast-track our priority airports,” she added.
For Iloilo, an upgraded international airport could improve the movement of passengers and goods while strengthening the province’s connection to other parts of the Philippines and international destinations.
Better airport infrastructure can also support tourism, business activity and regional investment, making the project relevant not only to Iloilo residents but to travelers and businesses across Western Visayas.
RELATED: [Iloilo Counts on P2.3-B Waste Facility to Solve Growing Garbage Problem]
