The infrastructure business unit of the Aboitiz Group—Aboitiz InfraCapital (AIC)—has submitted a P148-billion unsolicited proposal to upgrade, expand, operate, and maintain four major Philippine regional airports over a 35-year concession period.
The four regional gateways—Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport, and New Bohol International Airport in Panglao—are key entry points into Visayas and Northern Mindanao.
AIC in a statement said the first three are already operating above capacity and require urgent rehabilitation, while New Bohol is being eyed, as part of the national tourism strategy, to further open the island of Panglao to the international tourism market.
The company said its proposal will also help decongest Manila’s Ninoy Aquino International Airport (NAIA).
“These regions have been experiencing tremendous growth in the last few years and the airports have struggled to follow the pace of the development,” AIC noted.
The Iloilo and Bacolod airports have been operating for 10 years now, while Laguindingan, which started operating in 2013, has exceeded its capacity since opening this year.
“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,” AIC chief executive officer and president Sabin Aboitiz said.
The multi-phased project aims to transform the four facilities into world-class airports “every Filipino deserves and can be proud of,” Aboitiz said.
AIC said its approach will be driven by the “green airports” concept, whereby these gateways will be planned, implemented, and operated with the least environmental impact by utilizing a bespoke planning program, as well as by the “connected airports” concept, whereby technology will be leveraged to enhance passenger experience.
AIC noted that the government had earlier identified the modernization of 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 cancelled the plan in 2017.
It added that the pooling of resources to develop, operate and maintain all four airports is required to unlock synergies for the benefit of all stakeholders, including government.
“Not only will none of the airports require any form of subsidy, the combined potential of the four regional gateways results in overall gains for both the government and the local economy,” it stated.
“Swift implementation is key to ensuring that the airports continue to serve as a platform for sustained regional development,” it continued.
It added that the proposed approached by the group can assist the government in delivering the upgraded infrastructure as quickly and as efficiently as possible.
If an award is given within the year, AIC said it could start working immediately with relevant government and community stakeholders to improve operations and passenger experience in 2019, and could complete the necessary major upgrades and capacity expansions as early as 2021.
Aside from AIC, other conglomerates and companies have recently submitted unsolicited proposals to modernize and operate NAIA, construct an airport in Sangley, Cavite, and build an airport complex in Bulacan.
Image courtesy of IndypendenZ at FreeDigitalPhotos.net
