DOTr taps ADB, World Bank’s IFC for plan to privatize regional airports in bundles

The Department of Transportation (DOTr) has tapped multilateral financial institutions as consultants for its plan to package multiple regional airports into single contracts for private sector takeover.

In his remarks during the Philippine Aviation Summit in Pasay City on Wednesday, DOTr Undersecretary for Aviation and Airports Jim Sydiongco revealed that the DOTr has entered into Transaction Advisory Service Agreements with the World Bank Group’s International Finance Corp. (IFC) and the Asian Development Bank (ADB).

“We are making great progress with regional airport PPPs (public-private partnerships) through our partnership with World Bank-IFC and ADB,” Sydiongco said.

In particular, the DOTr and IFC have an ongoing project preparation to offer to the operations, maintenance, and development of airports in Davao, Dumaguete, Siargao in a single contract or “bundle” for the private sector.

The agency is also working the ADB to prepare the PPP “bundle” package for Laoag, Bicol, Busuanga, Bacolod, Tacloban, and General Santos airports.

The DOTr has earlier revealed that at it is planning to privatize the operations of at least 10 more regional airports.

The Transportation Department is also planning to split the Civil Aviation Authority of the Philippines’ (CAAP) “conflicting” dual role as regulator and operator of airports.

Sydiongco said the ongoing collaborations with IFC and ADB on the agency’s plan to privatize regional airports “help ensure that project development remains true, transparent, and aligned with global benchmarks.” — BM, GMA Integrated News