Improving our airport: How to get the job done

The news about the offer of the City Government of Tacloban to repair the DZR Airport Terminal must have come as a surprise to all LSDE readers.

But if you go down to it, it should not be much of a surprise. It is a logical response of a local government unit that has been waiting a long time to get this project started.
           
The airport terminal has long been due for renovation. In the project supposed to be funded through a loan from the Japan Bank for International Cooperation (JBIC) and national government funds as counterpart, the existing terminal is not going to be renovated – rather, a new terminal is to be built. The existing terminal will be demolished to provide additional parking space for aircrafts.
           
Also part of the P1.1 billion project proposed for JBIC funding, is the construction of a seawall or shore protection to expand the existing clearance on the sea side of the runway.
           
The gesture of the city government will make the Department of Transportation and Communication (DOT) re-think its current position to use national government funds to improve the airport. By the looks of it, DOTC does not have the funds within its budget ceiling to renovate the terminal.
           
Considering the existing policy to favor Build-Operate and Transfer schemes to solve the problems of inadequate government revenues to fund key projects, the offer has more than a fair chance of being approved.
           
The details of the arrangement will require a lot of discussion and negotiations, though. Among the important decisions would be: how long would the City Government of Tacloban be allowed to collect terminal fees? 

It is important for the national government to consider that this is a government and not a private entity that is seeking to fund the project. This means there is no profit involved and thus the national government can get to own the terminal in a shorter period of time then earn revenues from there and onwards.
           
The offer seems to be the fastest way to get the terminal improved. If the national government decides to push through with the JIBC loan, it will require a few more years before the work is started because a re-estimation of the cost may have to be done and doing this will follow the JIBC procedure and schedule.
           
We can only hope and wish DOTC realizes how urgent this project is and sympathizes with the people of their region.

This airport is a key component of the tourism promotion strategy of the national government in Central Philippines.