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Aboitiz InfraCapital Inc. won the P12.748-billion contract for the expansion and operation of Laguindingan International Airport in Misamis Oriental
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Transportation Secretary Jaime Bautista said signing of the concession agreement is scheduled this month, with turnover expected after four to six months
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The project entails upgrading the existing facilities, capacity augmentation, installation of required equipment, enhancement of airside facilities, and comprehensive operations and maintenance services
Aboitiz InfraCapital Inc. (AII) won the P12.748-billion contract for the expansion and operation of Laguindingan International Airport in Misamis Oriental, according to Transportation Secretary Jaime Bautista.
The project entails upgrading facilities, capacity augmentation, installation of required equipment, enhancement of airside facilities, and comprehensive operations and maintenance services.
AII was the lone bidder for the project.
“The notice of award was already issued to the original proponent of the Laguindingan Airport PPP Project with signing of the concession agreement scheduled this month,” Bautista said in a speech during the 2024 Aviation Summit hosted by the European Chamber of Commerce of the Philippines and Asian Business Aviation Association.
After the concession signing, it will take between four to six months before the Department of Transportation (DOTr) can officially turn over the airport to AII, which has to comply with post-award requirements first, Bautista told media on the sidelines of the event.
In a notice of award dated September 23, DOTr and the Civil Aviation Authority of the Philippines (CAAP) said the transport secretary and CAAP Board on September 20 approved the resolution of the Pre-qualifications, Bids, and Awards Committee recommending the award of contract in favor of AII, the original proponent of the project.
AII initially submitted a P148-billion unsolicited proposal in 2018 for the takeover of four airports, including Laguindingan airport.
The company was granted original proponent status for the project in 2019. Last February, DOTr and CAAP issued an invitation for the submission of comparative proposals for the unsolicited proposal to modernize the Misamis Oriental airport. The comparative challenge process was pursuant to the provisions of the newly-enacted Republic Act No. 11966, also known as the Public-Private Partnership (PPP) Code.
Under the PPP Code guidelines, prospective challengers will have a 90-day window from the publication of the invitation for submission of comparative proposals.
Following this period, the original proponent will be given 30 calendar days to match any responsive comparative proposals. If no such proposals are received, the project will be awarded to the original proponent by May 2024.
Last August, the National Economic and Development Authority Board confirmed the ad referendum approval of the extension for the submission of comparative proposals for the project until September 13, 2024. This followed the approval last July of the changes in the negotiated parameters, terms, and conditions for the project, such as adjustment of the passenger service charge, and minimum performance standards and specifications for operation and maintenance during the concession period.
Expanded passenger terminal building
In a related development, the Civil Aviation Authority of the Philippines officially opened the new passenger terminal building in Laguindingan airport on September 30.
The expansion increases by 72% the pre-departure area capacity to 860 passengers at any given time.
The airport handles up to 2 million passengers annually and is the third busiest CAAP-operated airport in 2023 and the sixth busiest in the country as of 2019.
The project, which began in February 2024, includes a 720-square-meter expansion utilizing a modular construction system, which provides excellent design flexibility, swift construction, cost efficiency, and environment-friendly.
“The expansion of Laguindingan PTB will not only enhance travel convenience and capacity but will also significantly benefit the neighboring cities of Northern Mindanao, including Cagayan de Oro, Iligan, and Marawi, as well as the provinces of Misamis Oriental, Lanao del Norte, Lanao del Sur, and Bukidnon. This development will support regional integration, which is crucial for improving access to opportunities throughout the region and for driving economic growth,” Transportation chief Bautista said.
CAAP director general Capt. Manuel Antonio Tamayo emphasized the commitment to completing the project within the year, while also prioritizing sustainability, stating, “We have expanded the facility with sustainability in mind. The construction used reusable steel, and the structure can be relocated if needed. Insulated materials were also added to ensure the cooling system operates efficiently.” – Roumina Pablo
