Jaime Rafael Feliciano, Transportation and Communication Assistant Secretary for Project Development/PPP, has informed Bacolod Rep. Evelio Leonardia that the proposed expansion of the Bacolod Silay Airport was conditionally approved by the NEDA Investment Coordination Committee on June 30.

Feliciano’s letter to Leonardia dated September 19, showed that the estimated cost of the project of P20.26 billion is intended solely for the Bacolod Silay airport development, that will be sourced out through public private partnership.

Leonardia said that Feliciano had explained to him in a meeting that the P20 billion is a reality, and it is in the pipeline.

Leonardia said the developments will include the passenger terminal, the run way and other facilities. He said the concessionaire that will win the bidding will fund the project.

The concession period will be 30 years, or a maximum of 35 years, he added.

During the budget hearing, Leonardia said that, as a member of the House Appropriations Committee and as senior vice chairman of the House Committee on Transportation, he raised the issue again purposely to follow up with Transportation and Communication Secretary Joseph Emilio Abaya the status of the proposed developments for the Bacolod Silay Airport.

Although Abaya answered him on the floor, he was also referred to the Civil Aviation Authority of the Philippines, he said.

THE SAME P20B

He also called the National Economic Development Authority regional director and, "We have made it clear that the P20 billion being discussed at the Regional Development Council is the same P20 billion that I am talking about.”

This is the project cost which is an estimate. And this will not be funded by the national government because it is going to be done through PPP, Leonardia said.

It is the concessionaire that will fund the development and this is a similar to the set up in Cebu, he said.

Leonardia also said the winning concessionaire will have the authority to receive the income of the airport. The government will not shell out money for the project.

Rep. Alfredo Abelardo Benitez, had said earlier that the P20 billion estimate for the Bacolod Silay Airport under the PPP plan could even go higher.

BIDDING SLATED THIS YEAR

Leonardia said that if things will go exactly as planned, the bidding will be held between the third or fourth quarter of 2014. Then the bidding and notice of award will be done on the first quarter of 2015.

The signingof the agreement will fall on the second quarter of 2015; third and fourth quarters will be the financial and asset handover. It is expected that the construction of these facilities will start in 2016, he said.

Leonardia said the Bacolod-Silay Airport was constructed with expectation that it will receive 800,000 passengers a year. But, based on the record of the DOTC, in 2008, when the airport was opened, it already accommodated 840,000 passengers. And every year the number increased.

RAPID PASSENGER INCREASE

In 2009, the number of passengers increased to 1 millionand to 1.36 million in 2013. In 2014, it is expected to increase to 1,540,000 passengers, Leonardia said.

They have noted that the boom in airline passengers is due to low cost carriers. When airline fares become cheaper, the number of passengers increase, he said.

Based on the project specification of the DOTC, the existing runway of the Bacolod Silay Airport is 2002 meters in length and 45 meters in width, Leonardia said. The proposed expansion will increase it by 500 meters to make the runway 2,500 meters, he said.

Leonardia said the project cost will need the endorsement of the City Development Council of Silay. This will then go through the Sanguniang Panlungsod of Silay City.*CGS

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