Soaring High: A New Era for Laguindingan International Airport with Aboitiz InfraCapital

COURTESY: Aboitiz InfraCapital, Inc. (AIC)

Aboitiz InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz Group, is on a mission. With the signing of a concession agreement to upgrade, operate, and maintain the Laguindingan International Airport in Misamis Oriental, AIC is setting the stage for a new era in Philippine aviation. This strategic move isn't just about bricks and mortar; it's about transforming the airport into a gateway that will drive economic growth and boost connectivity and tourism in Northern Mindanao.

Cosette V. Canilao, AIC President and CEO, encapsulates this vision perfectly. She highlights how the airport is pivotal in elevating the country's aviation infrastructure. A seamless and efficient passenger experience isn't just a luxury; it's a necessity. It fuels economic growth and broadens the business base for Laguindingan and the surrounding areas. With AIC at the helm, Laguindingan International Airport is set to reach new heights, playing a crucial role in the region's development.

On October 28, 2024, a P12.75 billion concession agreement was signed in the Malacañan Palace. This marked the beginning of a 30-year journey to transform Laguindingan International Airport. AIC, alongside the Department of Transportation and the Civil Aviation Authority of the Philippines, is committed to renovating and expanding the passenger terminal, installing state-of-the-art equipment, and enhancing both airside and landside facilities. The goal is simple yet profound: to significantly enhance the passenger experience, boost operational efficiency, and elevate safety and security standards.

But the vision doesn't stop there. Rafael M. Aboitiz, AIC Vice President and Head of Airports Business, sees potential in international flights. Collaboration with airlines and tourism stakeholders is key to realizing this dream. By working closely with local and international stakeholders, AIC aims to create a collaborative and conducive environment for investors. The expansion plans are ambitious, aiming to increase the airport's design capacity from 1.6 million passengers per annum (mppa) to 3.9 mppa in the first phase and up to 6.3 mppa in the second phase, depending on traffic demand.

AIC's vision for Laguindingan International Airport aligns with its broader mission to develop transformative infrastructure ecosystems. This is more than just an airport project; it's about leveraging the Aboitiz Group's expertise in infrastructure and technology to drive sustainable growth. Sabin M. Aboitiz, Aboitiz Group President & CEO, emphasizes the importance of a government that focuses on what truly matters. The private sector, he believes, has a vital role to play in achieving operational and financial excellence.

Laguindingan International Airport holds a special place in Mindanao, being the sixth-busiest airport in the country and the second-busiest gateway in the region after Davao City's Francisco Bangoy International Airport. For AIC, this project marks a significant milestone in its strategic expansion in the aviation sector. It adds to their growing portfolio of airports and underscores their commitment to enhancing connectivity across the Philippines.

President Ferdinand R. Marcos, Jr. captured the essence of the project during the signing ceremony. Airports offer travelers a first glimpse of what awaits them at their destination, and Laguindingan International Airport will be no exception. With AIC's track record, including the award-winning Mactan-Cebu International Airport (MCIA), Laguindingan is poised to set new benchmarks for airport operations in the Philippines.

MCIA's success is a testament to what can be achieved. From the Silent Airport plan, which mitigates noise pollution, to the operation of Bridge-Mounted Equipment that reduces carbon emissions, AIC is at the forefront of sustainable airport management. The recent partnership with Airports Council International Asia-Pacific & Middle East to develop a framework of environmentally sustainable initiatives further cements their commitment to achieving Net Zero emissions goals.

In conclusion, Aboitiz InfraCapital's venture at Laguindingan International Airport is a bold step towards a brighter future for Northern Mindanao. With a focus on modernization, collaboration, and sustainability, AIC is not just upgrading an airport; they're opening doors to new opportunities, fostering economic growth, and enhancing the travel experience for millions. The journey ahead is promising, and the sky's the limit.

Charting the Course: NEDA's Pivotal 13th Board Meeting Dictates the Future of Philippines' Economic Landscape

   At the 13th NEDA board meeting, Secretary Arsenio M. Balisacan laid out the roadmap for the future, setting the tone for the decisions and discussions that would follow. His opening remarks underscored the importance of the meeting in shaping the economic trajectory of the Philippines.

   One of the key decisions made during the meeting focused on the Upgrade, Expansion, Operations, and Maintenance of the Laguindingan International Airport Project. The NEDA Board approved the negotiated parameters, terms, and conditions (PTCs) for this endeavor. This project is set to bolster regional development and promote tourism in Northern Mindanao and its neighboring regions.

   The approval of the modified PTCs paves the way for this 12.75-billion pesos project to undergo the comparative challenge process. Prospective challengers will be given 90 days from the publication of the invitation for comparative proposals to submit their offers. The Original Proponent will be given 30 calendar days to match responsive comparative proposals. If no comparative proposals are received, the project shall be awarded to the Original Proponent by May 2024.

   The NEDA Board also approved the request to change the timeline and scope of the Department of Trade and Industry’s Rural Agro-enterprise Partnership for Inclusive Development and Growth or RAPID Growth Project. This project, amounting to 4.78 billion pesos, aims to support 78,000 farming households by expanding both on-farm and off-farm activities and generating employment opportunities in rural areas.

   The RAPID Growth Project seeks to support the growth and development of micro, small, and medium enterprises or MSMEs with strong backward linkages to farmers, and to provide them access to the needed capital to sustain their businesses. It will also create business partnerships between MSMEs and farmers to ensure a steady source of high-quality raw materials for the production needs of agro-enterprises.

   The Philippine Development Report, or PDR 2023, was presented to the President and members of the Cabinet. This report contains updates on the major programs, projects, and policies implemented in 2023 and evaluates the country’s performance based on the outcome indicators identified in the PDP.

   The PDR is a forward-looking document that considers and anticipates both internal and external developments and scenarios. It identifies the lessons learned and translates these into urgent priorities and plans of action to ensure we remain on track to meet our goals by 2028.

   The Philippine economy generally performed well in 2023, despite the magnitude of the challenges faced. The experience has led to the acknowledgment of the importance of reinforcing our fiscal position to sustain rapid and inclusive growth in the coming years.

   For 2024, the plan is to achieve a full-year GDP growth rate of 6.5 to 7.5 percent to generate economic opportunities, increase employment, raise per capita incomes, and elevate our economy to “upper-middle-income-country” status by 2025.

   The Marcos Administration remains steadfast in carrying out its transformation agenda as they expedite the approval of game-changing projects and ensure that all of the government’s programs and policies support our unified pursuit of a Bagong Pilipinas.

Unveiling the pivotal decisions from the 13th NEDA board meeting that are set to shape the Philippines' economic landscape. Key highlights include the revamp of the Laguindingan International Airport and the RAPID Growth Project, both aimed at stimulating regional growth and development. Discover how these developments are charting the course for the nation's future.