-
The Department of Transportation signed five contracts for key infrastructure projects, including the New Cebu International Container Port, on December 18
-
Agreements for the Cebu Bus Rapid Transit, Bohol-Panglao International Airport expansion, and new regional airports in Dumaguete and Siargao were also signed with President Ferdinand Marcos, Jr as witness
-
The P16.9-billion NCICP project aims to aims to alleviate congestion at the existing Cebu Base Port, enhance cargo handling and lower logistics costs
-
It is first-ever PPP project of the DOTr in the maritime sector
-
The P4.53-billion BPIA expansion is projected to increase the airport’s passenger capacity to 3.9 million annually by 2030 and generate P15 million annual revenue initially
The Department of Transportation (DOTr) signed five contracts for key infrastructure projects, including the New Cebu International Container Port (NCICP), on December 18.
The four other projects are the Cebu Bus Rapid Transit (CBRT), Bohol-Panglao International Airport expansion, and new regional airports in Dumaguete and Siargao.
All five are public-private partnership (PPP) initiatives. President Ferdinand Marcos, Jr. witnessed the signing in Malacañang.
Transaction Advisory Services Agreements were signed between the DOTr and the International Finance Corporation (IFC) for NCICP, New Dumaguete and Siargao Airports, and the CBRT. DOTr and Aboitiz InfraCapital, on the other hand, inked the concession agreement for the Bohol-Panglao International Airport.
The IFC’s transaction advisory services will help government implement the PPP transactions and expand private sector participation, the Department of Finance said in a statement.
During the Malacañang event, the DOTr also awarded the Civil Works Contract Package for NCICP to HJ Shipbuilding Corporation Co. LTD.
The construction of the NCICP in Consolacion, Cebu has been in the pipeline for two decades. Funded by the Export-Import Bank of Korea, the P16.9-billion project aims to alleviate congestion at the existing Cebu Base Port, enhance cargo handling and lower logistics costs. Construction includes a 1,365-meter access road and a 300-meter offshore bridge, targeting completion by November 2027.
READ: Groundbreaking for new Cebu port by end-2024
“Once completed, this will not only make goods more affordable but will also generate thousands of jobs for our people. Apart from this, it will also create more opportunities for everyone as it will provide increased space for port activities,” President Marcos said during the signing ceremony.
“Eight years after its approval, the project’s restructuring finally secured investment plan in June 2024, triggering the recommencement of procurement activities towards the imminent award of the Civil Works Contract Package, ultimately leading to this activity today,” Transportation Secretary Jaime Bautista said.
“The NCICP PPP will be DOTr’s first-ever PPP project in the maritime sector, and will be DOTr’s first hybrid PPP project in the current administration, wherein cheap concessional financing will be used for civil works, while agile private sector financing will be used for operations and maintenance,” he noted.
Meanwhile, the concession agreement signed between the DOTr and Aboitiz InfraCapital for the Bohol-Panglao International Airport involves construction of a new passenger terminal, upgrade, expansion, operations, and maintenance of the airport spanning 30 years. The official turnover is scheduled for June 2025.
The P4.53-billion modernization project is expected to generate substantial revenue for government while supporting the region’s booming tourism industry.
Marcos noted the project will be expanded in two phases. “By 2026, capacity will increase from two million to 2.5 million passengers a year. By 2030, we will reach almost four million passengers.”
Bautista added: “We expect Bohol Airport’s transformation after Aboitiz InfraCapital takes over the airport’s operations and maintenance. The privatization project follows closely after last month’s signing of the Concession Agreement for the Laguindingan International Airport PPP Project.”
READ: Aboitiz wins 30-year Bohol-Panglao airport contract
Revenue generation is also anticipated to grow significantly, starting at P15 million annually during the first five years and scaling up to P200 million per year by the end of the concession period.
Furthermore, plans for the New Dumaguete and New Siargao airports are underway, with the IFC providing support for documentary and bidding processes.
“The New Dumaguete Airport will create more opportunities for students, for workers, and businesses while the New Siargao Airport will help support tourism and trade,” Marcos said.
