Sunday, 24 November 2024
Airports

Aboitiz InfraCapital secures contract for Laguindingan Airport upgrade

Infrastructure firm to invest PHP 12.75 billion in Mindanao's second busiest airport

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Airside view of the proposed upgrades to the Laguindingan Airport. (Photo: Aboitiz InfraCapital, Inc.)

Aboitiz InfraCapital, Inc. (AIC) has been awarded the contract to upgrade, operate, and maintain Laguindingan Airport in Misamis Oriental, the company announced Tuesday.

The Department of Transportation (DOTr) and Civil Aviation Authority of the Philippines (CAAP) issued the notice of award to AIC on Sept. 30. The concession agreement is expected to be signed by the end of October.

The PHP 12.75 billion project aims to modernize one of Mindanao’s busiest airports, second only to Francisco Bangoy International Airport in Davao City. Plans include renovating and expanding the passenger terminal building, installing new equipment, and enhancing airside and landside facilities over a 30-year concession period.

Cosette V. Canilao, AIC President and CEO, said, “We are excited to take on revitalizing Laguindingan Airport and collaborating with stakeholders to create a world-class facility that serves the travelers and the community alike.”

The project is part of AIC’s strategy to develop infrastructure assets that improve connectivity across the Philippines. The company, a unit of the Aboitiz Group, currently operates Mactan-Cebu International Airport through a joint venture.

Rafael Aboitiz, AIC Vice President and Head of Airports Business, stated, “We are confident Laguindingan Airport will drive socio-economic progress in the region as airports are a force multiplier in driving socio-economic progress through job creation, tourism development, and expanded connectivity.”

The upgrade is expected to enhance passenger experience, improve operational efficiency, and elevate safety and security standards at the airport.

AIC’s involvement in Laguindingan Airport marks its expansion into Mindanao’s aviation sector, following its venture in Cebu. The company says it remains open to pursuing opportunities with other regional airports.

At the 2024 Aviation Summit, the DOTr highlighted Cagayan de Oro’s airport expansion as one of its key projects from 2024 until 2027.

This award marks the second of three public-private partnership (PPP) airport projects awarded so far this year. The first was the concession of Ninoy Aquino International Airport’s operations to the San Miguel Corporation-backed New NAIA Infrastructure Corporation. The third project is the Bohol-Panglao International Airport, which is currently undergoing comparative challenge until November.

Written by
Dirk Andrei Salcedo

An aviation enthusiast turned creator of the top aviation news portal in the Philippines, Dirk has a deep passion for everything that flies. When he's not keeping his finger on the pulse of the industry, he also volunteers with a major humanitarian organization, impacting people on the ground and in the sky.

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