Aboitiz Group offers P148 B to modernize 4 regional airports

MANILA, Philippines — Aboitiz Equity Ventures (AEV) submitted yesterday a P148 billion unsolicited proposal to develop four major regional gateways over a 35-year concession period.

AEV’s infrastructure unit, Aboitiz InfraCapital, offered to upgrade, expand and operate the Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport and New Bohol International Airport in Panglao, which are all key entry points into the Visayas and northern Mindanao.

Aboitiz InfraCapital CEO and president Sabin Aboitiz said the conglomerate recognizes the need for the country to have new airports.

“Through this unsolicited proposal, we intend to support the government’s Build Build Build program as we develop sustainable airport facilities that reflect and support the tremendous economic and tourism potential of the Philippines’ regions and provinces,” Aboitiz said.

The Iloilo International Airport, Bacolod-Silay Airport and Laguindingan Airports are already operating above capacity and require urgent rehabilitation, Aboitiz said.

 The Bohol Airport, meanwhile, is seen to open the island further to international tourists as part of the national tourism strategy.

 The move will decongest Manila’s Ninoy Aquino International Airport, Aboitiz said.

 Both Visayas and Mindanao have been experiencing tremendous growth in the last few years but the airports in these areas have struggled to follow the pace of the development.

Iloilo and Bacolod airports have been operating for 10 years, while Laguindingan started operating in 2013 but has been operating above its capacity since its opening year.

The P148-billion multi-phased project aims to transform the facilities into world-class airports every Filipino deserves and can be proud of, Aboitiz said.

The government earlier tried to push for the modernization of the regional airports as a critical infrastructure project and launched a tender for a public-private partnership for five airports under the build-operate-transfer law in 2014, but the Duterte administration scrapped this plan in 2017.

Aboitiz said pooling of resources to develop, operate and maintain all four airports is required in order to unlock synergies that will benefit all stakeholders, including the government.

Once the project is approved,  Aboitiz InfraCapital will start working with the relevant government and community stakeholders to improve operations and passenger experience in 2019.

The necessary major upgrades and capacity expansions may be completed as early as 2021.