Coron, Siargao airports up next for PPP

People queue up to board a humanitarian flight out of Siargao airport in Del Carmen, Siargao island on December 21, 2021, days after Super Typhoon Odette (Rai) hit the island.
AFP / Roel Catoto

MANILA, Philippines — The government has started evaluating the offers made by the Udenna and Gokongwei groups to operate the airports in Coron and Siargao, respectively, signaling that more gateways will be transferred to private hands under the Marcos administration.

In a forum hosted by the European Chamber of Commerce of the Philippines, the Public-Private Partnership (PPP) Center reported that it is now studying the P2-billion proposals to privatize the operations and maintenance of the Coron and Siargao airports.

The Udenna Group, owned by Davao-based tycoon Dennis Uy, is keen on taking over Francisco B. Reyes Airport and the New Busuanga Airport in Coron, Palawan.

The proponent has submitted an unsolicited proposal worth P1.35 billion. The project covers the operations and maintenance of the existing and future gateway to Coron.

If Udenna wins the concession, it will be tasked to manage the landside facilities of the Francisco B. Reyes Airport before its transfer to a new location.

The Department of Transportation (DOTr) plans to move the gateway to another place for larger capacity.

The PPP Center is also assessing the P860-million proposal of a private consortium to run the Sayak Airport, which leads to tourist hotspot Siargao, Surigao del Norte.

The group eyeing the airport is made up of the Philippine Airport Ground Support Solutions Inc. and Asian Infrastructure and Management Corp., along with Gokongwei-led JG Summit Infrastructure Holdings Corp., a member of a losing bidder to the Ninoy Aquino International Airport (NAIA).

Apart from operating the airport, the consortium promises to improve and expand its passenger terminal building to prepare for future demand.

The DOTr will sign the P12.75-billion concession for the Laguindingan Airport this month. The original proponent Aboitiz InfraCapital Inc. (AIC) secured the 30-year contract, adding a second gateway to its portfolio on top of the Mactan-Cebu International Airport.

AIC will also receive the right to operate and maintain the Bohol-Panglao International Airport if no other entity challenges its P4.53 billion proposal. The DOTr also plans to award the PPPs for the Iloilo, Puerto Princesa and Kalibo airports next year.

The DOTr is making a P207.66-billion push to upgrade airports across the Philippines, employing a mix of financing schemes, from loans to PPPs, to complete the pipeline.

The largest of these airport projects is the P170.6 billion rehabilitation of NAIA, won by the New NAIA Infrastructure Corp. led by San Miguel Corp.

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