Iloilo airport now up for auction

President Gloria Macapagal-Arroyo on Saturday ordered the Department of Finance (DOF) to begin the process of privatizing the Iloilo Airport located in Mandurriao, Iloilo City.

Mrs. Arroyo said the proceeds of the airport's privatization would be used to pay for the loan used in the construction of the new international Iloilo Airport in Sta. Barbarra-Cabatuan area.

The P6.2 billion New Iloilo Airport Development Project in Sta. Barbarra began construction in 2002 with funding from a loan from the Japan Bank for International Cooperation.

Arroyo said part of the proceeds will also finance the construction of the world-class highway connecting Panay and Iloilo up to Caticlan,

The President issued the statements while visiting Iloilo City on Saturday for the 4th Cabinet Meeting and District Convention of the International Association of Lions Club District 301-B.

The President, however, did not mention how much the government is expecting from the auction of the old airport.

"The development of a [more modern airport in Iloilo] is crucial to the economic development of the province," Mrs. Arroyo said.

In February 2004, President Arroyo issued an executive order directing the establishment of an asset disposition program to be managed by the DOF in order to evaluate alternatives on the disposition of the airport in Mandurriao, Iloilo City.

Earlier, Senate President Franklin Drilon disclosed that when the new Iloilo international airport opens the old Iloilo airport site will become a commercial and light industry complex which will give more jobs to Ilonggo people.