The government turned down the unsolicited proposal of the Aboitiz Group to modernize four airports in the Visayas and Mindanao for P148 billion over a 35-year concession period.
Aboitiz Equity Ventures said in a disclosure to the stock exchange infrastructure arm Aboitiz InfraCapital received an official response from the Department of Transportation stating that the agency 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).
AEV said given the policy, the 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.
AEV said AIC remained 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 include 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. Aside from AIC, the Aboitiz Group’s other infrastructure units are Republic Cement and Building Materials Inc., AEV’s partnership with CRH Plc. and Apo Agua Infrastructura Inc., a joint venture between AEV and J.V. Angeles Construction Corp. that will build one of the country’s largest private bulk water supply projects.