The Department of Transportation (DOTr) is prioritizing the privatization of Iloilo International Airport in Cabatuan, with efforts now at an advanced stage, according to Transportation Secretary Vivencio Dizon.
During a visit on Saturday, Dizon, along with other DOTr officials, met with Iloilo Governor Arthur Defensor Jr., Iloilo City Mayor Jerry Treñas, and Uswag Ilonggo party-list Rep. James Ang Jr. to provide updates on the unsolicited proposal from the Villar Group for the airport’s development.
“We assured the mayor and the governor that the DOTr will fast-track the current Public-Private Partnership (PPP) proposal from the Villar Group to ensure the airport’s sustainable growth and its ability to support the city’s expanding needs,” Dizon said.
He added that the proposal is in its final stages and is expected to be completed within the year.
Ongoing Improvements and Investments
While awaiting privatization, the government has allocated PHP190 million from the Civil Aviation Authority of the Philippines (CAAP) for immediate repairs and upgrades to the airport terminal. These include fixing equipment, repairing escalators, and adding more seats and elevators.
Dizon also revealed that the government would invest around PHP200 million in the airport this year, while the private proponent is set to commit PHP15 billion in mandatory investments. An initial PHP3.5 billion will be injected once privatization is finalized.
Calls for Expansion and Innovation
Mayor Treñas, who chairs the Infrastructure Development Committee of the Regional Development Council, emphasized the need for airport expansion, noting that Iloilo International Airport is the second busiest in Western Visayas after Caticlan.
“Privatization is necessary because we are seeing more flights every day. Last year, the airport handled two million passengers, making it one of the country’s key aviation hubs,” Treñas said.
Governor Defensor also suggested the addition of a terminal mall to enhance the passenger experience.
“I’ve been proposing the idea of a mall-integrated terminal. This aligns with the culture of Filipinos who often gather in large numbers to send off or welcome relatives,” he said.
Defensor believes this concept would be ideal, especially since the proposed private operator has experience in mall operations.
Privatization Plans for Other Airports
Dizon also confirmed that apart from Iloilo, the government is eyeing privatization for other major airports, including those in Davao, Siargao, Kalibo, Bacolod, and Dumaguete, to boost tourism and improve services.
“The President has instructed us to push for privatization because that is the way forward,” Dizon said.
The DOTr aims to expand Iloilo International Airport’s capacity to 10.5 million passengers by 2035, ensuring it meets growing passenger demand and remains a key gateway in the region.
