DOTr revisiting privatization bids for regional airports

The Department of Transportation (DOTr) is opening the negotiation table for interested private parties who want to take over the operations, maintenance, and improvement of several regional airports in the country.

“We are continuing the evaluation of the unsolicited proposals for regional airports. These are the Laguindingan Airport, Bohol-Panglao International Airport, Davao, Puerto Princesa, Iloilo, Bacolod,” Transportation Secretary Jaime Bautista told reporters in a recent interview.

“These are the regional airports that we would like the private sector to develop and improve operations,” he said.

The Transportation chief said that the DOTr has already communicated with those who have submitted unsolicited proposals to resubmit their proposals based on the new Build-Operate-Transfer law implementing rules and regulations (IRR).

The revised IRR of the BOT law, which took effect in October 2022, amended the definition of Material Adverse Government Action to cover all of government and not only the Executive branch, which effectively reduces the burden on the private sector on delayed government deliverables.

“There is already one proposal that was submitted to us last December 2,” Bautista said.

“We are expecting the others to submit within January,” he said.

The Transportation chief said that the proposal which was resubmitted was for the Laguindingan Airport.

Under the previous administration, Aboitiz InfraCapital Inc. bagged original proponent status for its unsolicited proposal to take over the Laguindingan Airport in Misamis Oriental. 

The same company also secured the OPS for its unsolicited bid for the operations and maintenance of the Bohol-Panglao airport. 

The DOTr is also reopening negotiations for the privatization of the Ninoy Aquino International Airport (NAIA). 

During the previous administration, two major proposals were made to rehabilitate the airport: one from the NAIA Consortium, which included Tan’s Asia’s Emerging Dragon, AC Infrastructure Holdings Corp., Alliance Global Group Inc., Filinvest Development Corp., and JG Summit Holdings Inc. The Pangilinan-led Metro Pacific Investments Corp. was also part of the consortium until it pulled out in March.

The other was submitted by a consortium of Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd.

Both proposals were eventually rejected by the government. — BM, GMA Integrated News