MANILA, Philippines — The Philippines currently holds the second largest pipeline of airport infrastructure projects in terms of value, according to Fitch Solutions.
In a report, Fitch Solutions said medium-to long-term opportunities abound in Asia, as majority of airport projects are currently at the pre-construction phase.
It said the region hosts over $220 billion worth of airport infrastructure projects, accounting for over 46 percent of the global airport infrastructure project pipeline in terms of value.
Leading the region are South Korea, the Philippines, and Vietnam.
According to Fitch Solutions, South Korea accounts for the largest share in Asia, with $46.1 billion worth of airport infrastructure projects, followed by the Philippines ($33.9 billion) and Vietnam ($23.3 billion).
“Together, these three markets account for close to 47 percent of Asia’s entire airport infrastructure project pipeline value,” it said.
Fitch Solutions said majority of airport infrastructure projects in Asia are at the pre-construction phase, offering medium to long-term opportunities for involvement across the region.
As such, Fitch Solutions raised the possibility of delays in project time frames or even suspensions and cancellations over the near-term due to the uncertainty amid the pandemic and the possibility of re-assessing business cases for some airport infrastructure developments.
“Investment in airports may be shifted back or postponed, as operators look to align investments with recovering passenger demand, which is likely only going to return to pre-pandemic levels post-2025,” it said.
Fitch Solutions said it is more bearish on the progress of small-sized airport projects.
It said the projects, which are located in non-hub areas, have niche demand, usually from tourism or limited domestic travel.
“As recovery of the aviation sector is expected to take a while, plans for smaller projects, be it the construction of a new airport or the expansion of existing facilities, could be delayed in the short-term,” Fitch Solutions said.
It said around 1.4 percent of Asia’s airport infrastructure project pipeline currently remains suspended.
Still, despite the uncertainties, Fitch Solutions said majority of airport projects in the region, including that in the Philippines, are still low and medium-risk based in its infrastructure project risk metric (PRM).
PRM quantifies a project’s likelihood to move through the development phases to reach completion in a timely manner.
It benchmarks the specific attributes of each project related to size, scope, and cost, along with the external environment using our risk metrics for industry, economy and political risk.