The Department of Transportation (DOTr) has opened the Swiss challenge on the 30-year concession to upgrade, operate and maintain the Laguindingan International Airport, asking local and international firms to submit comparative proposals to challenge the private proponent, Aboitiz InfraCapital.
On February 22, DOTr and the Civil Aviation Authority of the Philippines (CAAP) launched the Swiss challenge after the National Economic and Development Authority Board completed the evaluation, negotiation and approval of the unsolicited proposal submitted by Aboitiz InfraCapital Inc. for the airport, in accordance with the provisions of Republic Act No. 11966, otherwise known as the Public-Private Partnership Code of the Philippines.
Under the Swiss challenge, companies are invited to submit a proposal to challenge Aboitiz InfraCapital’s unsolicited proposal. The proponent has the right to match the offer of the challenger.
“The Implementing Agencies reserve the right to reject any or all bids, declare a failure of the comparative challenge, modify the Comparative Challenge Process documents or any aspect thereof anytime, and/or not award the project for any reason whatsoever and without the need of any explanation,” according to the DOTr’s invitation to submit a proposal.
The Laguindingan International Airport project is included in the infrastructure flagship projects of the national government.
The airport development project will include an aviation strategy for new airlines and new connections including the development of international flights, expansion of the airport’s capacity according to market demand, and introduction of new concepts of sustainability and connectivity to improve the environmental and operational performance of the airport.
The airport’s development and upgrade are seen to improve passenger experience and implement commercial services in the extended terminal and on the landside.
Laguindingan International Airport is among the airports lined up for privatization that is aimed at defining the development of international flights, implementing commercial services and expanding the airport’s capacity to enhance passenger experience.
This will serve the Northern Mindanao Region that is composed of five provinces — Misamis Oriental, Misamis Occidental, Lanao del Norte, Bukidnon and Camiguin — along with two highly urbanized cities, Cagayan de Oro and Iligan.
Just this month, the DOTr and CAAP led the groundbreaking ceremony for the expansion of the airport’s passenger terminal building, which will increase capacity from the current 500 to 860 passengers, representing a 72 percent increase.
