THE Department of Transportation (DoTr) has reaffirmed its commitment to proceed with critical improvements to the Iloilo International Airport in Cabatuan, regardless of the outcome of its unsolicited proposal (USP) for its rehabilitation and expansion. DoTr Planning Service Director Felicisimo Pangilinan Jr. announced that the department allocated P645 million for the airport in the National Expenditure Program (NEP) for 2025. "For 2025, with or without the Public-Private Partnership (PPP) proposal, we were able to include to the NEP an amount of P645 million for the airport's major upgrades," Pangilinan said. The budget is allocated for the expansion of the passenger terminal building (PTB), the apron or ramp, and improvements to the asphalt overlay of the runway. The Department of Budget and Management submitted the 2025 NEP to the House of Representatives earlier this June. "Hopefully, in 2025, it will be given its due course. The decision no longer lies in us, the executive, but it is already in Congress," Pangilinan said. He also said the approval of the budget for the airport would be a big boost to the economy of Iloilo and Western Visayas. Pangilinan also urged lawmakers from Iloilo to support and defend the budget in Congress. He also said that they are currently under negotiation with Prime Asset Ventures Inc. (PAVI), a subsidiary of the Villar Group of Companies. PAVI submitted its USP in 2019 and was granted original proponent status to operate, maintain and expand Iloilo International Airport. The negotiation is currently at the parameters, terms and conditions stage, where both parties are finalizing the project's scope, financial terms, and risk allocations. If successful, the proposal will be submitted to the National Economic and Development Authority (NEDA) board for approval. Pangilinan said they were targeting to conclude the negotiation stage this month. "It will now be dependent on the private sector to comply with the requirements," he added. The PPP project is valued at P12.79 billion and includes expanding the PTB's capacity, constructing a new apron, renovating the existing terminal, and maintaining airport facilities. In addition to the 2025 budget, the airport has been allocated P190.56 million under the General Appropriations Act 2024 for repairs and improvements. NEDA-6 Director Arecio Casing Jr. announced that rehabilitation of the PTB, including the installation of three additional 600 kW chillers costing P143.01 million, will begin in December. The asphalt overlay of the runway, with a total budget of around P50 million, is also set to start by the end of the year.
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