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Davao International Airport will be modernized through a public-private partnership under the plans.
SINGAPORE—The Philippine government has kick-started the process of privatizing Davao International Airport.
The Philippine Transportation Department signed a Transaction Advisory Service Agreement with the World Bank's International Finance Corporation (IFC) to begin the privatization journey.
The country is working to privatize a number of its airports under public-private partnerships (PPP). IFC is providing consulting services throughout the process.
“This agreement will formulate the best way to rehabilitate, expand, operate and maintain Davao International Airport and other regional airports,” Transportation Secretary Jaime Bautista said in a social media post. The government expects to complete the process within 13 months.
Bautista told local media that an investor recently expressed interest in Davao but has not yet submitted a proposal.
Operations of the capital's Manila Ninoy Aquino International Airport has already been handed over to a consortium made up of San Miguel Corp., RMM Asian Logistics, RLW Aviation Development and Incheon International Airport Corp.
Three more Philippine airports—Kalibo, Iloilo and Puerto Princesa—are also expected to undergo the PPP process in 2025. All three air gateways have already received proposals, primarily from local developers.
CAPA – Centre for Aviation and OAG Schedules Analyser data shows Davao offers service to eight domestic and three international destinations, with Manila and Cebu the most popular routes. Cebu Pacific has the majority market share in Davao, followed by Philippine Airlines and AirAsia Philippines.
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