Villar Group venturing into airport business

MANILA, Philippines — Tycoon Manny Villar may soon venture into the airport business as his investment vehicle makes a P31-billion pitch to operate and maintain the Iloilo and Puerto Princesa gateways.

The Department of Transportation (DOTr) said it plans to award the concession for the rehabilitation of the Iloilo International Airport and Puerto Princesa International Airport next year.

Villar’s Prime Asset Ventures Inc. (PAVI) will end up as the original proponent in both projects if no other companies submit a counteroffer during the Swiss challenge.

PAVI holds the original proponent status for the P20.85-billion upgrade of the Iloilo International Airport. The project entails expanding the passenger terminal building of the gateway and fixing existing facilities to accommodate the travel demand in Iloilo.

The Villar-led firm also enjoys the original proponent status for the P10.24-billion improvement of the Puerto Princesa International Airport. Whoever lands this project will be tasked to widen the passenger terminal building and improve the cargo handling facilities.

Meanwhile, Mega 7 Construction Corp.’s offer to operate and maintain the Kalibo International Airport will be opened for Swiss challenge next year.

Mega 7, jointly owned by marketing firm Digichive Philippines Corp. and general merchandiser Dominion Intertrade Corp., holds the original proponent status for the P3.8-billion renovation of the main gateway to Aklan.

Transportation Undersecretary Roberto Lim said PAVI and Mega 7 could expect an earlier award if they face no competitors during the period when their projects are opened to comparative offers.

The DOTr is currently waiting for prospective counterproposals that would contend the Aboitiz Group’s P4.53-billion plan to take over the Bohol-Panglao International Airport. The agency has yet to receive other interest for the project, but the deadline is still on Nov. 11.

In September, the DOTr issued the notice of award to Aboitiz InfraCapital Inc. (AIC) to proceed with its P12.75-billion proposal to modernize the Laguindingan Airport. The gateway became the second airport handed over to AIC, following its acquisition of the operator of the Mactan-Cebu International Airport.

AIC president and CEO Cosette Canilao said the concession agreement for Laguindingan Airport would be signed within the month.

The gateway serves as the main doors to Northern Mindanao, including to Cagayan de Oro City and Iligan City, and is the second busiest in the island next to the Francisco Bangoy International Airport in Davao City.