P21.6-B regional airport deal nears market test

The government’s P21.64-billion plan to privatize operations of three regional airports is nearing a market test as negotiations with the original proponent approach completion.

Civil Aviation Authority of the Philippines Director General Raul del Rosario said the bundled development, operation and maintenance of airports in Davao, Bicol and Siargao is moving closer to a Swiss Challenge, the competitive bidding process for unsolicited public-private partnership (PPP) proposals.

“It’s already in the negotiation stage but it is about to be finished,” Del Rosario said at the sidelines of a forum organized by the European Chamber of Commerce of the Philippines on Thursday.

The unsolicited proposal was submitted by the Philippine Regional Airports Consortium, composed of Filinvest Infra-Solutions Ventures Inc., JG Summit Infrastructure Holding Corp. and Asian Infrastructure and Management Corp.

The project offers private investors long-term operating rights over three regional aviation gateways, with 30-year concessions for Davao International Airport and Bicol International Airport and a 15-year concession for Siargao Airport.

Del Rosario said the proposal is already with the PPP Center, with competitive bidding expected to follow once negotiations are completed.

Under the Swiss Challenge, rival investors may submit competing offers, while the original proponent retains the right to match a superior bid.

The process will test investor appetite for regional airport concessions and determine whether the original consortium retains the project or another group secures the operating rights.

The proposed privatization also seeks to tap private capital for airport expansion and modernization, reducing the government’s direct role in financing and managing the facilities.