Infrastructure conglomerate Metro Pacific Investments Corp. is in advanced talks with several foreign airport operators to bid for unbundled regional airport projects this year.
Metro Pacific vice president for business development Karim Garcia said the group was now talking to several foreign operators, after its French partner Aeroports de Paris Management SA pulled out because of the Transportation Department’s decision to unbundle the airport projects.
“We are in advanced talks with several airports operators that are willing to invest in the Philippines,” Garcia said.
The group expects to finalize an agreement soon, Garcia said.
Metro Pacific asked the Transportation Department to lift the 10-percent equity requirement on a foreign airport operator to participate in a consortium bidding for the projects.
Garcia said that while some airline operators were willing to put in a 10-percent equity, others were not.
He said the requirement was hindering the process because airline operators were in the business of operating airports and not in owning equity in airports.
“So most airport operators around the world’s business model is they operate an airport for a fee under a technical services agreement. Now if you force them to make an equity, it makes the process a lot harder,” Garcia said.
“And also because they know they you need them for that requirement, they tend to be less willing to give their partners better pricing on their services,” he said.
The unbundled five provincial airports include the P20.26-billion Bacolod-Silay International Airport, the P30.4-billion Iloilo International Airport, the P14.62-billion Laguindingan Airport, P2.34-billion New Bohol (Panglao) Airport and P40.57-billion Davao International Airport.
The National Economic and Development Authority board approved on Nov. 14, 2016 the unbundling of the airport PPP deals.