DOTr rejects Aboitiz Infra’s unsolicited proposal to maintain, operate 4 regional airports

Aboitiz InfraCapital Inc.'s (AIC) - the infrastructure unit of conglomerate Aboitiz Equity Ventures Inc. (AEV) - said Tuesday that the Department of Transportation (DOTr) thumbed down its P148-billion unsolicited proposal to take over the maintenance and operation of four regional airports from the government.

"AIC has received an official response from the Department of Transportation (DOTr) stating that the Department has adopted a policy to publicly solicit bids for the operations, maintenance, improvement, and expansion of all airports under its jurisdiction, and therefore cannot accept the proposal," parent AEV said in a regulatory filing submitted by its corporate secretary Mailene de la Torre to the Philippine Stock Exchange.

On March 7, the AEV disclosed that it has submitted to the DOTr an unsolicited proposal for the upgrade, expansion, operation and maintenance of Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport, and New Bohol International Airport (Panglao).

The four airports as well as the Davao Airport were previously planned as a public-private partnership (PPP) venture under the administration of former President Benigno Aquino III.

However, the Department of Transportation scrapped the project last year and said the rehabilitation of the regional airports would instead be implemented via other modes.

"While AIC believes its proposal is a very efficient solution to address the immediate need of the airports in the most expedient and comprehensive way, we understand the DOTr’s decision to take a different course," AEV said.

It added that AIC remains committed to supporting the Philippine government in its efforts to advance infrastructure within the country, particularly in the aviation sector.

"We look forward to receiving the final details of the upcoming tender and will continue supporting the development of the regional airports," AEV said.

Aboitiz InfraCapital is part of the super consortium of seven of the biggest conglomerates in the country which submitted a P350-billion unsolicited proposal to rehabilitate the Ninoy Aquino International Airport. — RSJ, GMA News