CAAP: Upgrade regional airports via PPP

MANILA, Philippines — The government’s airport operator has called for the acceleration of efforts to improve gateways in the region, backing the Marcos administration’s push to do it with the private sector.

The Civil Aviation Authority of the Philippines (CAAP) yesterday said it stands ready to partner with private firms in undertaking rehabilitation works on provincial airports.

This means that CAAP is also prepared to let go of its role as operator in airports that would be turned over to the private sector through public-private partnerships (PPP).

CAAP director general Manuel Antonio Tamayo said the agency supports any and all programs that would raise the capacity of airports for future demand. He believes that upgrading gateways, particularly in the countryside, would contribute to investment and tourism growth.

Tamayo said CAAP is working with the World Bank’s International Finance Corp. (IFC) to study the development of new airports in Dumaguete and Siargao.

The IFC will advise CAAP on how to best bid the contracts for said projects.

“These projects will not only enhance the travel experience for millions of passengers, but it will also drive economic growth, tourism and investment opportunities in our country,” Tamayo said.

President Marcos yesterday witnessed the signing of the P4.53-billion agreement to turn over the operations and maintenance of the Bohol-Panglao International Airport to the Aboitiz Group.

The Aboitiz Group, through Aboitiz InfraCapital Inc. (AIC), won the deal as original proponent for the project, facing no challenger when the government asked for counterproposals.

As operator, AIC is tasked to construct a new passenger terminal for the airport under its 30-year concession. Under the PPP deal, AIC must be able to expand the capacity of the Bohol-Panglao International Airport to 3.9 million passengers annually.

AIC is growing its airport footprint in Visayas and Mindanao, having bagged the operations and maintenance of the Laguindingan Airport this year as well. Prior to this, AIC entered the airport business by buying out the operator of the Mactan-Cebu International Airport for P25 billion.

Tamayo said now is the best time to pursue PPPs for airports given the momentum obtained by the government from the handover of the Ninoy Aquino International Airport (NAIA).

The New NAIA Infrastructure Corp., led by San Miguel Corp., has been undertaking the P170.6-billion rehabilitation of NAIA since September, determined to turn the gateway around from its reputation of being one of the worst in the world.