MANILA, Philippines — Aboitiz InfraCapital, Inc.—the infrastructure unit of the Aboitiz Group—said the government rejected the company’s unsolicited proposal to modernize four key regional airports.
Last month, Aboitiz Equity Ventures, Inc., the public holding company of the Aboitiz Group, said Aboitiz InfraCapital wants to give the Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and New Bohol International Airport in Panglao a P148-billion makeover.
The airports are considered the key gateways to Visayas and Mindanao.
In a disclosure to the stock exchange on Tuesday, Aboitiz Equity Ventures said the Department of Transportation turned down the offer because the agency has adopted a policy to publicly solicit bids for the operations, maintenance and development of all airport projects.
“While AIC believes its proposal is a very efficient solution to address the immediate need of the airports in the most expedient and comprehensive way, we understand the DOTr’s decision to take a different course,” the company said.
“AIC remains committed to supporting the Philippine government in its efforts to advance infrastructure within the country, particularly in the aviation sector,” it added.
“We look forward to receiving the final details of the upcoming tender and will continue supporting the development of the regional airports.”
To bankroll its ambitious infrastructure program, the Duterte administration prefers a “hybrid” model, in which construction is financed by the government or official development assistance and operation and maintenance is entrusted to the private sector.
Unlike its predecessor, the current government is more welcoming of unsolicited proposals, while criticizing the slow progress of public-private partnership initiatives.
Aboitiz InfraCapital is also part of the “super consortium” that submitted a P350-billion proposal to upgrade the 70-year-old Ninoy Aquino International Airport.
Apart from infrastructure, the Aboitiz Group also has major investments in power, banking and financial services, food and land.
As of 2:48 p.m., shares in Aboitiz Equity Ventures fell 85 centavos or 1.25 percent to P67.10 apiece on Tuesday.