Gov’t turns down Aboitiz infra group bid to modernize four airports

April 10, 2018

Aboitiz InfraCapital, the infrastructure business unit of the Aboitiz Group said the government rejected its unsolicited proposal to modernize four airports in the Visayas and Mindanao for P148 billion over a 35-year concession period.

In a disclosure to the Philippine Stock Exchange Monday, Aboitiz Equity Ventures said AIC received an official response from the Department of Transportation stating that the agency has adopted a policy to publicly solicit bids for the operations, maintenance, improvement and expansion of Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and New Bohol International Airport (Panglao).

Given the policy, AEV said DOTr “cannot accept the proposal” of AIC for the provincial airports.

“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.

But AEV said 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.

The government earlier identified the regional airports modernization as a critical infrastructure project and launched a tender for a public-private partnership for five airports under the Build-Operate-Transfer Law in 2014. The plan was canceled in 2017.

The five regional airports included the P20.26-billion Bacolod-Silay International Airport, the P30.4-billion Iloilo International Airport, the P14.62-billion Laguindingan Airport, the P2.34-billion New Bohol (Panglao) Airport and the P40.57-billion Davao International Airport.

The Department of Transportation earlier pre-qualified Maya Consortium led by Aboitiz Equity Ventures, Philippine Airports Consortium of Metro Pacific Investments Corp., San Miguel Holdings Corp-IIAC Airport Consortium and Filinvest-Jatco-Sojits Consortium for the five regional airports.

AIC undertakes all of the infrastructure and infrastructure-related investments of the Aboitiz Group. DMS