CAGAYAN DE ORO CITY-Air travelers to and from Northern Mindanao can look forward to a upgraded terminal experience with the expansion of Laguindingan Airport in Misamis Oriental set to officially start on April, 2025.
Transportation Secretary Jaime J. Bautista made the disclosure during the ceremonial presentation of the Notice of Award to Aboitiz InfraCapital (AIC) for the operations and maintenance of Laguindingan airport held October 11 at the new passenger terminal building.
It is the first airport Public-Private Partnership (PPP) to be successfully awarded via unsolicited bid under the administration of President Ferdinand E. Marcos, Jr.
“By April 2025, Laguindingan Airport will be officially turned over to Aboitiz InfraCapital, although I hope they can do it earlier,” Bautista said. “The substantial PHP 12.75-billion investment of Aboitiz in Laguindingan Airport aims to transform this airport into a world-class gateway that will boost connectivity, tourism, and economic growth in Northern Mindanao.”
The first phase of the Laguindingan Airport PPP project involves increasing capacity to 3.9 million passengers a year, from the current 1.6 million. Starting 2026, capacity will further increase to 6.1 million passengers depending on the attainment of key performance indicators (KPIs).
AIC President & CEO Cosette V. Canilao said they expect to complete and comply with all the requirements under the Notice of Award by next week. This will be followed by the execution and signing of the Concession Agreement with the President at Malacañang on October 23, which will be endorsed to the PPP Center.
In a notice of award dated September 23, DOTr and the CAAP informed AIC of the DOTr and CAAP Board’s approval of the resolution of the Pre-qualifications, Bids, and Awards Committee recommending the award of contract in favor of AIC, the original proponent of the project.
AIC initially submitted a P148-billion unsolicited proposal package in 2018 for the takeover of four airports, including Laguindingan airport.
The company was granted original proponent status for the project in 2019. DOTr and CAAP issued an invitation for the submission of comparative proposals on February 2024 to AIC’s unsolicited proposal pursuant to the provisions of Republic Act. No. 11966, The Public-Private Partnership (PPP) Code.
Interested challengers had a 90-day window from the publication of the invitation to submit their counter proposals, after which the original proponent had 30 calendar days to match any responsive comparative proposals. If no such proposals were received, the project was scheduled for awarding to the original proponent by May 2024.
However, the National Economic and Development Authority Board later extended the submission of comparative proposals for the project to September 13, 2024 due to changes made last July in the negotiated parameters, terms, and conditions for the project.
Canilao stressed the project aims to be more than a mere upgrading of the airport infrastructure. Rather, AIC aims to build a future where Laguindingan Airport becomes an anchor for regional progress by catalyzing economic and tourism growth and fostering local development.
She said this entails working closely with stakeholders and communities to ensure that every development aligns with the needs and aspirations of the people it serves. Firmly believing infrastructure is more than just physical structures, AIC eyes creating meaningful impact and driving inclusive growth by engineering and building transformative infrastructure ecosystems which deliver long-term value and sustainable solutions that benefit not just the present, but future generations as well.
“As we take on the responsibility of operating and developing this airport, Aboitiz InfraCapital is fully committed to delivering innovation and sustainability across all stages of this project. Our vision is to make Laguindingan Airport a showcase of Filipino talent and enterprise—an airport that is not only globally competitive but also reflects our unique identity and values as a nation,” Canilao said.
Bautista acknowledged and thanked the agencies and organizations which conducted the arduous process of project evaluation, NEDA and funding approval, and assessment of the unsolicited proposal that enabled the awarding to AIC of the Laguindingan airport expansion, including the Aviation and Airport sector of DOTr, the Civil Aviation Authority of the Philippines, NEDA-ICC, PPP Center, the local government of Cagayan de Oro City and other stakeholders.
“I cannot agree more why Aboitiz is deep into airport development,” Bautista said. “They believe airports are force-multipliers in driving socio-economic progress through job creation, tourism development and expanded connectivity.”
Aboitiz InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz Group, aims to build purpose-driven infrastructure that spurs economic growth and improves lives. It develops Economic Estates as well as Water, Digital Infrastructure, and Transport & Mobility projects that enable businesses and uplift communities.
AIC’s current business units include TARI Estate in Tarlac, LIMA Estate and LIMA Water Corporation in Batangas; Mactan Economic Zone 2 Estate, West Cebu Estate, and Mactan-Cebu International Airport in Cebu; Apo Agua Infrastructura, Inc. in Davao City, and Unity Digital Infrastructure, Inc. The company also has a minority stake in Balibago Waterworks System, Inc., the fourth-largest private utilities distributor in the country.
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