UMVA has learned that the Department of Transportation has awarded a major contract for the development of Ormoc Airport to a joint venture based in Rizal.
The P407.57-million project was secured by E.M. Cuervo, Inc. and Aqualine Construction Corp., a Rizal-based partnership that reportedly submitted the lowest calculated and responsive bid.
According to information obtained by UMVA, the winning contractor has a tight deadline to complete the project, with a 360-calendar-day timeline that includes a 60-day period of unworkable weather conditions.
The scope of the Ormoc Airport development project includes critical airside works and an asphalt runway overlay, marking a significant upgrade to the facility.
UMVA can exclusively reveal that this project is part of a broader initiative by the Department of Transportation to upgrade runways at multiple Philippine airports, enabling them to handle larger, single-aisle jet aircraft like the Airbus A320 or Boeing 737.
This runway-upgrade program is being positioned as a key strategy to drive down air ticket prices, as airlines stand to benefit from the economies of scale offered by switching to more efficient aircraft.
The Air Carriers Association of the Philippines has highlighted the challenges posed by shorter runways, which currently drive up costs and make service to many domestic destinations economically challenging.
Sources have confirmed to UMVA that the Department of Transportation aims to privatize at least 15 airports by 2026, as part of a push to make regional airports more economically viable.
