Privatization of Davao International Airport now underway

DOTr Secretary Jaime Bautista. | CDN Digital photo / Niña Mae Oliverio

LAPU-LAPU CITY, Cebu — Following the privatization of the Ninoy Aquino International Airport (NAIA), Transportation Secretary Jaime Bautista said on Monday that the privatization for Davao International Airport is now underway.

Bautista confirmed this in an interview with reporters in Lapu-Lapu City where he was one of the guests at the 59th conference of the Directors General of Civil Aviation in the Asia-Pacific regions.

He said that the Department of Transportation (DOTr) signed on Saturday, October 12, the transaction advisory service agreement (TASA) with World Bank’s International Finance Corporation (IFC) for the privatization of the Davao International Airport.

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Bautista said that the agreement, through their trusted advisers, will be able to identify the best way to rehabilitate and maintain not only the Davao International Airport but also other regional airports in the country.

“Pag-aaralan yan nang ating advisers kung pwedeng isama dun sa privatization yung maliit na airport…Yan po ang pag-aaralan natin para hindi naiiwan yung mga maliliit na mga airports,” Bautista said.

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Privatization

Bautista added that the DOTr and the Civil Aviation Authority of the Philippines (CAAP) are working together to ensure the success of the privatization.

During the signing ceremony on Saturday, Bautista said the TASA shall fast track the airport’s development which is similar to the recent Public-Private Partnership (PPP) for the NAIA.

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In its press briefer, DOTr said that IFC Regional Manager Thomas Lubeck has expressed his confidence on their ability to transform the Davao International Airport for the end users, not only for the government.

Bautista earlier said that the DOTr expects to finish the PPP process for the Davao International Airport in 13 months, the same as with the NAIA PPP.

The New NAIA Infrastructure Corp. (NNIC), the operator of the NAIA that is led by San Miguel Corp., took over the airport’s operations last Sept. 14 after it won in the bidding process for the P170.6 billion project last Feb. 16.

Airport fees

With NNIC’s takeover, the airport’s service charge is also expected to increase.

International departing passengers will now have to pay P990 instead of only P550, while the domestic departing passengers will pay P390 from the P200 service charge.

According to the Manila International Airport Authority Revised Administrative Order 1 Series of 2024 which was approved last Sept. 4, the passenger fees will be adjusted again in the sixth and 11th year of the 15-year concession period.

If the concession period is extended for another 10 years, service charges will again be adjusted on the 16th and 21st year.

According to Secretary Bautista, increasing the service fee is crucial to support the infrastructure requirements of the NAIA. | with reports from Tyrone Jasper C. Piad