The Department of Transportation (DOTr) is moving forward with a strategy to hand over the operations and maintenance (O&M) of several key infrastructure projects to private companies, aimed at improving efficiency and boosting capacity, according to Transportation Secretary Jaime J. Bautista.
Bautista confirmed that the O&M of both the Iloilo and Puerto Princesa Airports will be transferred to private sector operators as early as next year. In addition, the O&M of Bohol-Panglao International Airport is slated to be awarded next month to Aboitiz InfraCapital, marking a significant step in the government’s push to privatize airport operations.
“We are aiming to award the O&M contract for Bohol-Panglao by next month, while the privatization of Iloilo and Puerto Princesa Airports will take place by mid-2025,” Bautista said during a recent briefing. These moves are part of the broader initiative to streamline operations and improve service standards through private sector investment.
Bautista also noted the Mactan-Cebu International Airport operator recently signed a concession agreement for the O&M of Laguindingan Airport in Misamis Oriental, further illustrating the government’s strategy of involving private entities in managing vital infrastructure.
In the rail sector, the DOTr is considering the privatization of the MRT-3, with a focus on increasing the line’s capacity and operational efficiency. Bautista said the agency has already received an unsolicited proposal for the MRT-3 O&M but is also exploring the possibility of a solicited proposal.
“With limited government resources, we are turning to the private sector to enhance the MRT-3’s capacity. This will result in new trains, better rolling stock, and a significant increase in passenger volume,” Bautista explained. Under the proposed privatization, the MRT-3’s capacity could rise to 500,000 passengers per day from the current 350,000.
The DOTr is targeting a mid-2025 timeline for transferring the MRT-3’s operations to private hands, which is expected to improve the efficiency and overall experience for commuters.
As part of the government’s strategy to modernize and expand the country’s transport infrastructure, the move to privatize key assets is seen as crucial to meeting the growing demands of both domestic and international travelers.
