TWO separate entities recently announced that they will accelerate the development of our country. The first comes from the Public-Private Partnership (PPP) Center, which said the expansion and modernization of six secondary airports, namely, Bacolod, Iloilo, Panglao, Laguindingan, Davao and Puerto Princesa, will be opened for bidding. It is expected that the bidding will be completed before March 2016. The projects will approximately cost P114 billion ($2.60 billion).
The other comes from Cebu Pacific, one of the country’s rapidly growing air carriers. The company’s president, Lance Gokongwei, was quoted that, given the congestion at the Ninoy Aquino International Airport, Cebu Pacific will focus increasing flights and expanding domestic and international traffic from secondary airports in various parts of the country.
Gokongwei’s outlined vision is tantalizing. He said Cebu Pacific will complement its international program with a strong domestic component. In the domestic arena, the potential for growth is big. Of the 100 million population scattered among 7,107 islands, a portion of them now traveling by buses or boats, will soon be switching to airplanes, hence, the increase of number of planes.
The opportunities for growth in the international arena are also attractive. Cebu Pacific currently has flights to Singapore and Hong Kong, from the Iloilo and Kalibo airports. The company plans to expand flights to Japan, South Korea and other international destinations from the same or other secondary airports in the future.
These new and expanded routes will have a substantial impact on Philippine tourism. Gokongwei noted that the Philippines can do a lot better than its current share of 5 percent of travelers to Southeast Asia and 20 percent of those traveling to Thailand. As a tourist destination, the Philippines has the potential of equaling or exceeding Thailand and Indonesia.
For background, Cebu Pacific started operations in March 1996 and currently flies to 28 cities in 17 countries in Asia, Australia and the Middle East. It carried 16.9 million passengers in 2014. It expects to raise this number to 18 million in 2015.
These PPP projects will, hopefully, solve the problems posed by Cebu Pacific. The basic premise behind the PPP Program is that it can bring enormous public works and projects without burdening the government with huge financial costs, thus liberating huge sums of money in the government budget for use in other equally meritorious public structures and facilities.
For its part, the private sector benefits not just by recovering its investment and earning a reasonable rate of return on it but by identifying itself with projects and facilities directly beneficial to the people.
The rest of the government’s PPP projects, altogether amounting to more than $100 billion, already announced as ready for bidding, will speed up the laying down and completion of the country’s infrastructure.
Air transportation is indispensable to the rapid development of our archipelagic country in moving people and goods, and enhancing domestic and international tourism. Let us lend it the infrastructure it needs to give our country efficient air-transport service.
Image credits: Jimbo Albano
1 comment
PPP-private win and govt win but the public pay all the bills