Wednesday, 22 January 2025
Airports

Bohol-Panglao airport PPP signed

Agreement with Aboitiz InfraCapital aims to boost capacity, drive economic growth

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A Cebu Pacific Airbus A320 parked at Bohol-Panglao International Airport after a flight from Davao. (Photo: Dirk Salcedo, AviationUpdatesPH.com)

The Civil Aviation Authority of the Philippines (CAAP) and the Department of Transportation (DOTr), together with Aboitiz InfraCapital, Inc. (AIC), have signed a Public-Private Partnership (PPP) agreement for the modernization of the Bohol-Panglao International Airport.

The signing ceremony took place at Malacañang Palace on December 18, 2024, and was witnessed by President Ferdinand R. Marcos Jr. This agreement follows AIC’s successful bid for the project, which was awarded on November 18, 2024.

Under the 30-year concession agreement, AIC will invest PHP4.53 billion to upgrade, expand, operate, and maintain the airport. The project includes the expansion of the passenger terminal, installation of new equipment, and upgrades to both airside and landside facilities.

These improvements are aimed at increasing the airport’s passenger capacity from its current level to 2.5 million within the first two years, with a further expansion target of 3.9 million passengers annually by 2030.

The Bohol-Panglao International Airport is currently the country’s ninth-busiest gateway, having served 1.65 million passengers in 2023, a 38 percent increase compared to 2022, according to CAAP statistics.

The agreement signifies a key component of the government’s broader efforts to modernize the country’s aviation infrastructure. According to the PPP Center, the Bohol-Panglao airport project is the third airport PPP to be signed following the passage of the PPP Code of the Philippines in December 2023.

CAAP Director General Captain Manuel Antonio Tamayo stated, “The modernization of our airports is a cornerstone of our vision for a more connected, competitive, and sustainable Philippines. These projects will not only enhance the travel experience for millions of passengers but also drive economic growth, tourism, and investment opportunities in our country.”

Plans are also underway for the development of the New Dumaguete and New Siargao airports, with the World Bank International Finance Corporation providing support for documentation and bidding processes.

The Bohol-Panglao agreement follows the successful transfer of operations and management of NAIA to New NAIA Infrastructure Corporation, and the Laguindingan Airport to Aboitiz InfraCapital earlier this year.

“Through this landmark airport PPP project, the public can expect a marked improvement in overall passenger experience through modernized terminals, optimized airport capacity, and reliable operations that will serve the Filipinos for generations to come,” said PPP Center Executive Director Ma. Cynthia C. Hernandez.

“This is a testament to our commitment to delivering an airport that will serve as a gateway to opportunities, a hub for connectivity, and a catalyst for sustainable development.”

Written by
Dirk Andrei Salcedo

Dirk is the founder and editor-in-chief of Aviation Updates Philippines (AUP), a platform dedicated to providing the latest news and insights on the aviation industry in the Philippines. With a strong passion for aviation and a background in computer engineering, he manages all aspects of AUP, from website development to content curation.

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