Philippines: 5 airports set for privatisation in 2025, says official

Regional aviation gateways earmarked for public-private partnership (PPP) deals

Last updated:
Jay Hilotin, Senior Assistant Editor
2 MIN READ
A view inside the passenger terminal of the Puerto Princesa International Airport in Palawan (IATA code: PPS), one of the Philippine aviation facilities up for privatisation.
A view inside the passenger terminal of the Puerto Princesa International Airport in Palawan (IATA code: PPS), one of the Philippine aviation facilities up for privatisation.
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Manila: The Philippines is preparing to privatise five more major airports in 2025, a move aimed at enhancing regional aviation services and supporting economic growth outside the bustling capital, Manila.

Manuel Tamayo, Director General of the Civil Aviation Authority of the Philippines (CAAP), announced the development on Tuesday.

He doubled down on the government's commitment to leveraging public-private partnership (PPP) initiatives to continue ramping up the country’s aviation infrastructure.

The airports slated for privatisation are Iloilo International Airport, Puerto Princesa International Airport, Davao International Airport, Siargao Airport, and Bohol-Panglao International Airport.

Key gateways

These airports are key gateways to popular tourist destinations and vital hubs for regional connectivity.

The government’s decision to prioritise these airports reflects their strategic importance in the country’s aviation network. For example:

  • Iloilo International Airport serves as a central hub for Western Visayas and handles a high volume of domestic flights, as well as select international routes.

  • Puerto Princesa International Airport, located in Palawan, is the primary gateway to tourist attractions like the Underground River, a UNESCO World Heritage Site.

  • Davao International Airport, in Mindanao, is among the busiest in the Philippines and plays a crucial role in connecting the region to Manila and the rest of the country.

  • Siargao Airport, famed for serving the surfing capital of the Philippines, attracts a significant number of local and international tourists.

  • Bohol-Panglao International Airport, often called the "green gateway to the world," boasts environmentally sustainable infrastructure and serves as a gateway to Bohol's famed Chocolate Hills and tarsiers.

Infrastructure buildup

The privatisation push aligns with the country’s long-term strategy under the “Build Better More” infrastructure program, which aims to promote investments in regional transportation hubs.

Tamayo explained that the initiative will seek to attract private investors who can bring in the capital, technical expertise, and efficiency necessary to upgrade these airports’ facilities and services, catering to both domestic and international travellers.

Private operators

This follows a successful trend of PPP projects in the aviation sector, such as the privatisation of the Mactan-Cebu International Airport, which has since gained recognition for its world-class terminal and operations.

Similar expectations surround the privatisation of the Ninoy Aquino International Airport (NAIA), whose management shifted from government to a private concessionaire in September after winning a public bidding in February.

While privatisation offers opportunities to enhance passenger experience and operational efficiency, Tamayo noted that the government would closely monitor these projects to ensure equitable access and affordability of services for the flying public.

System upgrades

Upgrades in airports, weather equipment, runways are also underway, he said.

The agency is also boosting its Communications, Navigation, Surveillance/Air Traffic Management (CNS-ATM) system.

The CNS/ATM enables aircraft to transmit accurate locations for takeoffs, landings, and air traffic control.

Tamayo said about $35.9 million had been allocated for hardware upgrades.

CAAP is required to maintain the old navigation systems, even if the trends now are satellite-based, he explained.

Further announcements regarding the bidding process and detailed timelines for these projects are expected later this year.

For now, this initiative signals the Philippines' strong focus on developing a competitive and globally connected aviation industry.

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