Gov’t earmarks P109B for upgrading of airports
September 24, 2014 at 14:56
by Kris Bayos
The government is spending at least P109 billion to expand the country’s main gateways and develop the secondary airports to accommodate jet planes to boost the aviation and tourism industries.
In a transport investment forum hosted this week by the British Embassy Manila, Transportation Undersecretary for Planning Rene Limcaoco said there are at least 49 projects to upgrade key gateways, improve secondary airports and modernize old-airports to be jet-capable hubs.
“The government is targeting to bring the aviation sector to the ‘jet-age’ since a lot of our airports that are built in the ’60s only accommodate turbo propellers, which costs 50 percent higher to operate than jets. This in turn sets an obstacle to lower fares which is in turn a precursor to an expanded aviation industry,” he said.
Limcaoco invited British transportation industry players to join the bidding for the aviation projects that are worth a total of $2.4 billion. He added that DOTC is closely working with the Department of Tourism to develop the country’s airports since it will boost tourism industry, which will provide opportunities to the unemployed and eventually contribute to the country’s economic growth.
The official likewise urged British companies and investors to join the bidding for the numerous rail projects of the Aquino Administration.
“Currently, only 6 percent of trips in Metro Manila are taken by rail,” he explained. “This is low compared to the more developed nations where mass transit ridership encompasses between 22 to 40 percent of riders. We are targeting to bring this number up to 17 to 18 percent by expanding existing rail lines and building more.”
Limcaoco said the DOTC is looking at tapping the public-private partnership scheme in rolling out the government’s aviation and rail projects.
“We are looking at PPP for both our rail and aviation projects as a delivery vehicle in order to help us foot part of this bill and make sure that private sector know-how on operation and management does contribute to a more efficient airport and rail system network,” he added.
For his part, Transportation Secretary Joseph Emilio Abaya said foreign participation in the auction of the rail and aviation projects is very much encouraged.
“We encourage as much competition as possible to ensure that we get the best deals that the field has to offer. We also try to draw as much foreign participation as we can to infuse our projects with international experience and expertise,” Abaya said in a speech delivered for him by Undersecretary for Legal Jose Perpetuo Lotilla.
“I am sure that the Philippines would benefit from the technical capability that’s been harnessed over time from the development of the United Kingdom’s extensive transport network,” Abaya added.
