Aboitiz investment to give Misamis Oriental airport world-class upgrade
CAGAYAN DE ORO, Philippines – Aboitiz InfraCapital (AIC) has committed P12.75 billion for the expansion of Laguindingan Airport in Misamis Oriental, aiming to elevate the facility to world-class standards.
The project, framed as a catalyst for improved connectivity and tourism, is seen to have far-reaching impacts on Northern Mindanao’s growth. The airport is located between Cagayan de Oro and Iligan cities.
Transportation Secretary Jaime Bautista pointed out this potential during a ceremony on Friday, October 11, where AIC received the notice of award for the airport’s operations and maintenance.
The event was held at the newly constructed passenger terminal, the first airport Public-Private Partnership (PPP) project successfully awarded through an unsolicited bid under administration of President Ferdinand Marcos Jr..
Bautista, who has been at the forefront of pushing infrastructure upgrades across the country, described the expansion project as a critical step in transforming the Laguindingan Airport into a strategic gateway for Mindanao, promising increased efficiency and international standards.
“By April 2025, Laguindingan Airport will be officially turned over to Aboitiz InfraCapital, although I hope they can do it earlier,” Bautista said.
Under Aboitiz management, he said, the Laguindingan airport can transform to a major international airport, vastly boosting connectivity for northern Mindanao while attracting more tourists, investors and businessmen.
“We all know this translates to job creation and increased economic activity, benefiting surrounding communities,” Bautista said.
The first phase of the project involves increasing the airport’s capacity to 3.9 million passengers a year, up from the current 1.6 million. Starting in 2026, its capacity is expected to further increase to 6.1 million passengers, depending on the attainment of key performance indicators (KPIs).
AIC President and CEO Cosette Canilao said they expect to complete and comply with all the requirements under the September 23 notice of award by next week. This will be followed by the execution and signing of the concession agreement with Marcos Jr. at Malacañang on October 23.
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. In February, the Department of Transportation (DOTr) and Civil Aviation Authority of the Philippines (CAAP) issued an invitation for the submission of comparative proposals to AIC’s unsolicited proposal, pursuant to the provisions of the Public-Private Partnership (PPP) Code.
Potential 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. No such proposals were submitted.
Subsequently, the National Economic and Development Authority (NEDA) board extended the submission of comparative proposals for the project to September 13, 2024, due to changes made last July to the negotiated parameters, terms, and conditions for the project.
Canilao said the project aims to do more than just upgrade airport infrastructure, and that AIC envisions the airport becoming an anchor for regional progress by catalyzing economic and tourism growth and fostering local development.
“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.
AIC is the infrastructure arm of the Aboitiz Group, involved in developing economic estates, water, digital infrastructure, and transport projects. Its ventures include the TARI Estate in Tarlac, LIMA Estate and LIMA Water in Batangas, and the Mactan Economic Zone 2, West Cebu Estate, and Mactan-Cebu International Airport in Cebu.
AIC also manages Apo Agua in Davao City and Unity Digital Infrastructure, and holds a minority stake in Balibago Waterworks, the country’s fourth-largest private utility. – Rappler.com