Friday, 30 May 2025, 2:01 pm

    Gov’t pushes airport privatization with greater vigor

    The Department of Transportation (DOTr) is advancing plans to privatize at least six airports across the country, primarily to improve public service delivery rather than raise government revenue, according to Transportation Secretary Vince Dizon.

    “I count at least six critical airports that we need to PPP now,” Dizon said, referencing the Public-Private Partnerships (PPP) program involving the airports in Busuanga, Puerto Princesa, Davao, Iloilo, Tacloban, and Bacolod — all of which serve major tourist destinations.

    Dizon said the primary goal is to enhance the travel experience for Filipinos, acknowledging the poor performance of government-run transport facilities. “When they are run by the government, they are not run well, and our people suffer,” he acknowledged.

    Under the Marcos administration, more airports have been privatized than during any previous administration, with three already handed over to private operators, including the Ninoy Aquino International Airport (NAIA), now managed by San Miguel Corporation. “It shows that privatization really works… There’s less congestion, shorter lines, and better overall service,” Dizon said.

    The government has also transferred operations of Laguindingan International Airport to Aboitiz InfraCapital (AIC) under a 30-year, P12.75-billion concession signed in October 2024. AIC is investing another P4.53 billion to modernize the Bohol-Panglao International Airport, set for official turnover in June this year. Planned upgrades are expected to raise Panglao’s passenger capacity from 2 million to 2.5 million in two years, with a long-term goal of 3.9 million by 2030.

    The policy move underscores a broader shift toward leveraging private sector expertise and capital in managing critical infrastructure, with implications for service quality, investment flow, and long-term transport resilience.

    The government earlier targeted asset sale or lease proceeds of some P100 billion this year from last year’s actual privatization haul of only P4.44 billion. The proposed airport management disposition builds on last year’s success from the sale of the government’s participation in a tollway operator and continued resolve to generate more from the disposition of its power generation assets this year and beyond.

    Over P910 billion worth of power assets have thus far been generated from privatization as of January this year. Of the amount, over P828 billion have actually been collected and remitted to the Bureau of the Treasury, based on reported data from the Power Sector Assets and Liabilities Management Corp. (PSALM). 

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