Airport development projects hit snag

The development of six airports in Palawan and Mindanao would likely be scrapped due to the failure of the Department of Transportation and Communications (DOTC) to comply with the loan requirements of the Asian Development Bank (ADB).

The projects, called Third Airports Development Project, include two regional and four domestic airports in Puerto Princesa City, Palawan, Cotabato, Sanga-Sanga, Dipolog, Butuan and Pagadian, according to the ADB.

In a recent letter to DOTC Assistant Secretary Allan Tan, the ADB said the process of land acquisition for the projects has been at a snail’s pace and would likely delay the projects and make them costlier.ADB infrastructure director for Southeast Asia Patrick Giraud said the land acquisition and house compensation process averaged only 10 percent overall, far short of full completion by March 31, 2002.

"Furthermore, given the fact that it took over three years to achieve 10 percent of land acquisition, expecting completion of the remaining 90 percent in less than nine months appears unrealistic," the letter read.

The ADB approved in September 1997 a 25-year, $93 million loan for the upgrading of the six airports and the European Investment Bank provided co-financing amounting to $29 million for the $167 million projects.

However, the delay in project implementation has already cost the government more than $1.5 million in commitment charges and would continue to cost the government $600,000 per year. The ADB has requested the cancellation of the uncommitted balance of the loan.