Iloilo International Airport Modernization Stalls After Proposal Rejected

Iloilo International Airport has waited seven years for a major upgrade proposal to move forward. Instead, the PHP 21 billion unsolicited proposal from Prime Asset Ventures Inc., the infrastructure holding firm of the Villar Group, has been rejected by the Civil Aviation Authority of the Philippines.

Why the Airport Rehabilitation Bid was Rejected

PAVI first submitted its proposal in 2018, seeking to rehabilitate, expand, operate, and maintain the airport under an operate-and-transfer scheme. The Public-Private Partnership Center formally recognized the company as the original proponent, and negotiations with the government concluded successfully. 

However, the project’s timeline was complicated by the enactment of Republic Act 11966, or the Public-Private Partnership Code of the Philippines, which took effect on December 23, 2023. It is a law that created a main rulebook for public-private partnership projects. 

These are projects in which the government works with private companies to build or operate public services. Before it, PPP rules were spread across different laws, agencies, and procedures. 

Therefore, proposals that had already secured Original Proponent Status prior to the law’s effectiveness were given the option to continue their approval process or resubmit under the new framework.

What this Means for Iloilo’s Gateway

CAAP Deputy Director General Danjun Lucas confirmed that PAVI retains the option to refile its proposal with the required documentation. 

The Department of Transportation is also weighing a solicited mode. Which would allow the government to define the project scope and open it to competitive bidding. Both paths remain available, though each requires additional time before any expansion work can begin.

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Two Paths Forward, One Shared Destination

Whether through a refiled proposal or a government-initiated competitive bid, the next step depends on decisions that have yet to be formalized. For travelers, overseas workers, and the businesses that rely on Iloilo as a regional hub, the timeline for those decisions carries real consequences. 

The airport’s role in the region’s connectivity and economic growth makes the resolution of this process one of the more consequential infrastructure questions facing Western Visayas today.