DOTr seeks Laguindingan airport comparative proposals

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Photo from http://laguindinganinternationalairport.com
  • The Department of Transportation is seeking comparative proposals to develop and improve the Laguindingan International Airport in Misamis Oriental
  • The proposals will serve as competitive challenge to Aboitiz InfraCapital Inc.’s unsolicited proposal in 2018 for the takeover of Laguindingan Airport
  • The National Economic and Development Board last month approved negotiated parameters, terms, and conditions for the P12.75-billion airport project
  • Proposals from private entities accepted under a comparative challenge process to finance, design, construct, operate, and maintain the project under a 30-year concession period

The Department of Transportation (DOTr) is seeking comparative proposals to develop and improve Laguindingan International Airport in Misamis Oriental.

The proposals will serve as competitive challenge to Aboitiz InfraCapital Inc.’s unsolicited proposal for Laguindingan Airport, which was submitted in 2018 as part of an unsolicited proposal to takeover four regional airports.

The company was granted original proponent status for the Laguindingan Airport project in 2019. The project, approved by the National Economic and Development Authority (NEDA) Board in July 2023, is a key element in the government’s broader strategy to foster regional development and boost tourism in Northern Mindanao and adjacent regions.

The NEDA Board last month approved the negotiated parameters, terms, and conditions (PTC) for the P12.75-billion Laguindingan International Airport project.

The PTCs were a result of negotiations between the government, represented by the DOTr and the Civil Aviation Authority of the Philippines (CAAP), and Aboitiz InfraCapital.

With approval of the PTCs, the next stage–the comparative challenge process–pursuant to Republic Act No. 11966, also known as the Public-Private Partnership (PPP) Code, commences.

The DOTr and CAAP will open the submission of comparative proposals from private entities under a comparative challenge process to finance, design, construct, operate, and maintain the project under a 30-year concession period.

The airport development project will also include aviation strategy for new airlines and new connection including development of international flights; expansion of the airport’s the capacity according to market demand; and introduction of new concepts of sustainability and connectivity to improve the environmental and operational performance of the airport.

The airport’s development and upgrade are seen to improve passenger experience and implement commercial services in the extended terminal and on landside.

Under the PPP Code guidelines, prospective challengers will have a 90-day window from the publication of the invitation for submission of comparative proposals.

Following this period, original proponent Aboitiz InfraCapital, will be given 30 calendar days to match any responsive comparative proposals. If no proposals are received, the project will be awarded to the original proponent by May 2024, NEDA earlier said.

According to the project’s invitation for submission of comparative proposals, the project is expected to realize the potential of the Laguindingan airport in facilitating the connectivity to the Northern Mindanao Region and Cagayan de Oro and Iligan.

The DOTr eyes implementation of the first phase of the Laguindingan International Airport project from 2024 to 2026.

READ: Laguindingan Airport to expand passenger capacity by 72%