Rescheduling of airport bidding a minor setback--Treñas
Treñas
City Mayor Jerry Treñas yesterday said the tax dispute between the city government and the Air Transportation Office (ATO) and the existence of untitled lots at the existing Iloilo Airport site in Mandurriao district will not hamper its proposed sale.
Treñas's reaction was in response to the statement of Department of Finance (DoF) Undersecretary for Privatization John Sevilla over the delay on the bidding of the airport. The bidding should have taken place yesterday but it was moved to May 9 due to technicalities.
The DoF official attributed the delay of the the postponement of the bidding to ATO's unsettled real property tax and the existence of two untitled lots. It is the DOF which led the special body tasked to facilitate the privatization of the airport.
ATO failed to pay some P6 million in real property tax to the city government.
The finance department wants to settle the tax issue first before the final bidding process. They also want to figure out the possibility of the bidder in acquiring the two untitled lots of about 6,512 square meters within the airport. The qualified bidders for the sale of the Iloilo airport are Ayala Land Inc., SM Prime Holdings Inc., Robinsons Land, Empire East Holdings Inc. and Rockwell Land Corporation.
It was learned that the city government already won the battle with regard to ATO's tax liabilities. However, the defendants appealed the decision of the local court before the Supreme Court. The dispute started in late 90s.
Treñas is hoping that the DoF could help the city speed up the bidding and sale of the airport site which will be vacated very soon when the airport operations would be transferred to the new Iloilo Airport of International Standards in Sta. Barbara-Cabatuan area.
The mayor said the sale of the Iloilo airport can generate more jobs and investment to Iloilo City. "We foresee more economic activities once the airport is sold," he said.