Task Force prefers local funds for Panglao Airport

By: JUNE S. BLANCO

THE Panglao Island Tourism Estate Inter-Agency Task Force (PITE IA-TF) chaired by Gov. Erico Aumentado Tuesday opts for local funding over a foreign loan to finance the construction of the Panglao Bohol International Airport Development Project (PBIADP). The choice came by way of a resolution after Aumentado presented to the body the advantages and disadvantages of the options and the members went into “nominal voting.” “We will forward immediately to the National Economic and Development Authority [NEDA] our preferred funding source for its guidance and to push its implementation,” the governor said.

During a previous meeting, Aumentado said the discussion gravitated towards using domestic funds for the PBIADP to include the P3 billion payable that Dr. Lucio Tan of Philippine Airlines has committed to remit on a staggered basis to the Manila International Airport Authority (MIAA) under its general manager Alfonso Cusi. The payable is for the exclusive use of the Centennial Terminal at the Ninoy Aquino International Airport (NAIA). “It was already agreed that the Department of Transportation and Communications [DOTC] and MIAA be the lead agencies for the purpose but because of the closeness of the Philippines-China relations, a representative from the private sector who claims to have access to Chinese funds offered to bankroll the project,” he said.

He discussed the development with NEDA Director General and Social Planning Secretary Romulo Neri who is bullish for the Panglao airport project. He said Neri confirmed that this private sector representative had talked with him. Aumentado however said in a series of meetings with Cusi, he is standing pat on his and DOTC Sec. Leandro Mendoza's proposal to use local or MIAA corporate funds. President Arroyo has issued an executive order making MIAA the super body to administer all international airports.

“I met GM Cusi again at the Davao International Airport recently. When the discussion centered on the PBIADP funding source, he insisted that MIAA can finance the construction with corporate funds and allocations from the DOTC, DBM [Department of Budget and Management] and PTA [Philippine Tourism Authority], among others,” the governor said. He quoted Cusi as saying that “tapping the Chinese connection” will delay the implementation and as such, “we will not be able to meet our timelines.” Besides, he explained, the Chinese loan would be “a tied loan” as only Chinese contractors will be allowed to participate in the bidding. Cusi is interested in broadening the bidder base because this early, he has already started contacting Korean Airlines (KAL) to use the Panglao Bohol International Airport as its hub in the Philippines , Aumentado said. He added that he sat with the Philippine delegation during the bilateral talks of President Gloria Macapagal-Arroyo and Premier Wen Jiabao in China in Nanning City and during the 3rd China-ASEAN Summit and Exposition last October.

He noted that up for signing in December are loan packages for the North Rail Luzon Project, its extensions to Clark and to Subic . and the South Luzon Railway Project. “Panglao was not included, hence, this is not the peak time to pine for a three-percent concessional loan payable in 20 years with a five-year grace period,” he said. Giving their support for the local option or reiterating the commitments of their bosses were DOTC Assistant Sec. Jose Torralba, Engr. Llewelyn Villamor of MIAA, a representative of NEDA, Engr. Mesiona, Publuc Works and Highways Assistant Region 7 Director Gloria Dindin, DOTC Dir. Raffy Lavides, Engr. Raul Glorioso of the Air Transportation Office (ATO).

Peter Dejaresco, chair of the Provincial Tourism Council (PTC) said he was happy to note that the PITE IA-TF is pushing for the faster way of implementing the project that would redound to the benefit of the Boholanos. Instead of the airport, the task force instead proposed that the China funding be tapped to finance the construction of the Bohol-Cebu Friendship Bridge , development of the Cantakoy Falls in Danao town for more hydro-electric power and the development of the Upper Abatan River as source for the Metro Tagbilaran Waterworks System. Another resolution suggested to DPWH Sec. Hermogenes Ebdane Jr. that he tap the department's 2006 savings to fund the Panglao road network he and President Arroyo approved last June 5 for funding release.

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