The Philippines ranks Second in Airport Infrastructure Project Value

According to business solutions company, Fitch Solutions, the Philippines holds the second-largest pipeline of airport infrastructure projects in terms of value.

The company’s report states that Asia is an oasis for medium-to-long-term opportunities as most airport projects remain in the pre-construction phase. Additionally, it reports that the region hosts over $220 billion worth of airport infrastructure projects, roughly 46% of the global airport infrastructure. The region is currently led by South Korea, the Philippines, and Vietnam in this regard.

Fitch Solution states that South Korea accounts for $46.1 billion worth of airport projects, the Philippines follows with $33.9 billion, while Vietnam comes third with $23.3 billion.

“Together, these three markets account for close to 47 percent of Asia’s entire airport infrastructure project pipeline value,” it said.

The company predicts an increased possibility of delays in project time frames in the short term due to the uncertainty of the pandemic and the possibility of re-assessing business cases for some airport infrastructure developments.

“Investment in airports may be shifted back or postponed, as operators look to align investments with recovering passenger demand, which is likely only going to return to pre-pandemic levels post-2025,” it said.

However, they add that there is less risk of this in smaller airport projects.

“As recovery of the aviation sector is expected to take a while, plans for smaller projects, be it the construction of a new airport or the expansion of existing facilities, could be delayed in the short-term,” Fitch Solutions said.

Although, despite the uncertainties, Fitch Solutions claims that the majority of projects are low-to-medium-risk based on its project risk metric (PRM).

PRM is a metric that quantifies a project’s likelihood to move through the development phases to reach completion on schedule.

Source: Philstar