THE government is set to bid out for the privatization of the Laguindingan International Airport next year, National Economic and Development Authority (Neda)-Northern Mindanao Director Leon M. Dacanay, Jr. confirmed.
“The Neda board has endorsed the airport’s public-private partnership (PPP). Since the government cannot afford the expansion alone, we invite bidders. It will be an advantageous approach for the government,” he added.
PPP is done to lessen the expenses for the airports since the government cannot pour all its funds into a single airport’s developments.
Also up for privatization are the airports in Davao, Bacolod, Clark, Panglao, Puerto Princesa, Iloilo, and the Ninoy Aquino International Airport (NAIA). The government has been mulling on the PPPs on some of the mentioned airports, while Laguindingan and Panglao have been the only airports confirmed ready for the bid out for privatization.
“The private sector will improve the airport, maintain it, and be private-money funded in the period agreed and indicated in the contract and by the end of the term Laguindingan will be handled by the government. The Civil Aviation Authority (Caap) will still be the regulator of aviation, security, safety. The operation will be care of the private investor,” Dacanay added.
Oro Chamber trustee and past president Rodolfo Meñes said it is good for the airport to undergo the PPP scheme.
Aerotropolis
“It will be beneficial to all parties if the airport will be privatized. Actually, a company has shown interest and is a prospect in the bidding since it owns a large land around the Laguindingan aiport. It intends to develop it into an aerotropolis which will be good for the industry and the economy,” Meñes said.
He also added that an aerotropolis is a development hinged on airport operations, an airport city surrounded by clusters of aviation–related enterprises, and other great developments that are still ongoing discussion.
“The private corporation will manage the international airport that will bring in cargoes and tourists, emphasizing its role as gateway of the neighboring cities and provinces. And since it will be run by the private sector, there will be a hurdle rate. The government and the private sector will have to agree on this specific regulation because there is public interest involved,” he added.
Meñes also stressed there will be a hurdle rate in which the company will charge a certain amount for a certain service, thus, there can be no excuse for bad performance. Laguindingan International Airport will be able to provide better and excellent service with great facilities to assure convenience and safety for the public.
Keeping rates fair
“The only challenge is how to keep the rates fair for the riding public. That will be talked through and agreed on by the concerned parties,” Menes said.
Both the government and the private sector aim to promote a orderly, coordinated, and efficient airport not only in Laguindingan, but in the other airports nationwide to diminish the bad reputation of the Philippines’ airports, as NAIA has just been recently branded as one of the top 10 worst airports in the world.