Bohol airport: Public-private pool or foreign fund source? Ric V. Obedencio

TAGBILARAN CITY, Philippines – Where will the funds come from to finance the long-delayed New Bohol Airport project in Panglao island? Will it be from the official development assistance (ODA) by a foreign country-grantor or the public-private partnership (PPP) of the national government and local private firms?

This question surfaced following reports that big investors—Ayala Corporation and the Metro Pacific Investment Corp.—were eyeing at developing the proposed 220-hectare Bohol airport project, including the Puerto Prinsesa airport development in Palawan province.

Earlier, giant conglomerate San Miguel Corporation was reportedly eager to bid for the Bohol airport under the PPP scheme, as well as on the airport projects in Palawan province, CARAGA region, and the cities of Tacloban and Dipolog.

Top officials of Aquino administration had earlier argued it would be more cost-effective if the Bohol Airport be funded by the ODA rather than through the PPP, according to Tourism Secretary Ramon Jimenez, Jr. last year.

Jimenez had said that Aquino changed the proposed PPP funding to ODA for the airport project because the latter carried only low interest rates for the borrowed money by the government. Under the PPP, however, it would be the private sector borrowing the money but with high interest rates.

Governor Edgar Chatto commented that the change to the ODA scheme to finance the airport project seemed reasonable enough to make the project move but it would still be the government to decide ultimately.

The National Economic and Development Authority’s investment coordination committee-cabinet committee (ICC-CC) has already approved this funding revision for the Panglao Island Airport Development Project, said Efren Carreon of the NEDA-Region 7 office.

“The new project title is New Bohol Airport Construction and Sustainable Environment Protection Project,” Carreon said, with the total cost amounting to P7.44 billion.

“The P5.862-billion of this would be sourced from the Japan International Cooperation Agency-Special Terms for Economic Partnership (JICA-STEP) loan, while the P1.578-billion will be the counterpart of the Philippine government,” he added.  (FREEMAN)