Govt to lower asking price for old Iloilo airport

The Philippine government will be lowering its asking price for the 54-hectare old airport in the Iloilo town of Mandurriao after it failed to sell the property last May 9. Finance Undersecretary John Philip Sevilla told reporters on Monday that the government is now having the value of the property re-appraised so another public bidding could be scheduled. Sevilla said the government could not enter into a negotiated sale with the highest bidder as it did not set a minimum bid price prior to the bidding date. Sevilla declared a failed bidding for the property last May 9 after the offers made by the three bidders were below the P1.2 billion indicative price set by the government during the auction day. Robinsons Land, the company with the highest bid, offered only P1.089 billion for the property while Empire East had a bid of P701 million, and SM Prime Holdings offered P435.7 million. Two other pre-qualified bidders, Ayala Land and Rockwell Land, did not attend the bidding. Representatives of the bidders all said the government’s asking price for the airport property was too high above current market price in the area. Sevilla said there is no definite date as to when the appraised value of the property would be completed as well as the date of the possible public bidding. The government has earlier said that part of the sale proceeds would be used to pay a P6.2 billion loan from Japan Bank for International Cooperation, which was used to finance the construction of the new Iloilo International Airport in the Sta. Barbara – Cabanatuan area. The proceeds will also be used to fund the construction of a first class highway interconnecting the provinces of Iloilo , Capiz, Antique and Aklan. - GMANews.TV