The Department of Transportation (DOTr) yesterday sealed its partnership with Aboitiz InfraCapital (AIC) for the P12.75-billion contract for the operation and maintenance of Laguindingan International Airport.
President Ferdinand Marcos Jr. witnessed the signing of the 30-year concession agreement between DOTr secretary Jaime Bautista, Civil Aviation Authority of the Philippines director general Manuel Antonio Tamayo and AIC president and chief executive officer Cosette Canilao, at the Malacañang Palace.
“The improvement of the airport will significantly boost tourism, create jobs, increase business presence, and ultimately aid in achieving our goal of economic growth,” Marcos said in a statement.
Since its opening in 2013, Laguindingan Airport has served as the main gateway for Northern Mindanao.
“We expect Laguindingan’s transformation after Aboitiz InfraCapital takes over the airport’s operations and maintenance. This privatization project – coming closely after last month’s successful turnover of Ninoy Aquino International Airport to a private concessionaire – forms part of our program of airport upgrade and expansion while enhancing passenger experience,” Bautista said in his speech at the ceremonial signing event.
The agreement is considered the first unsolicited proposal awarded by DOTr during the Marcos administration.
It is seen to transform Laguindingan International Airport in Misamis Oriental into a modern, efficient and sustainable gateway in Northern Mindanao that meets global standards.
“Aboitiz, we understand, plans to expand Laguindingan’s capacity from 1.6 million passengers annually to 6.3 million,” Bautista said.
Under a public-private partnership (PPP) scheme, the concessionaire will upgrade, expand, operate and maintain the airport as well as undertake two phases of capacity augmentation to meet increasing demand.
The concession agreement also involves the reconfiguration of existing terminal space to improve processing capacity, construction of a new passenger terminal building as well as maintenance and repair.
In her speech, PPP Center executive director Ma. Cynthia Hernandez noted the signing of the concession agreement of the Laguindingan Airport PPP project as a testament to the Marcos administration’s commitment to improving economic development across the country, particularly in Northern Mindanao, through infrastructure development.
“This project will strengthen our transportation network, enhance regional connectivity, and contribute to the country’s economic growth. With the PPP model, we are ensuring that this endeavor brings in private-sector innovation and efficiency while aligning with our national development goals,” Hernandez said in a statement.
The Laguindingan International Airport project is the third national PPP project to be awarded and signed following the enactment of Republic Act No. 11966 or the PPP Code of the Philippines in December 2023.
As one of the infrastructure flagship projects of the national government, this PPP airport project aims to support the government’s thrust to promote regional economic development and to contribute to unlocking tourism potential.
The project also integrates the new concepts of green and connected airports into the design, operation and maintenance of the airport by operating efficiently and sustainably while minimizing undesirable environmental impacts, and by using digital technologies to enhance the passenger experience and improve system efficiency.
Meanwhile, DOTr is also set to conduct the Swiss challenge for the Bohol-Panglao airport in November.
Companies may submit proposals to challenge that of the original proponent, which has the right to match the offer of the challenger.
Other unsolicited airport development proposals are those for Iloilo, Kalibo and Puerto Princesa.