TAGBILARAN CITY, Philippines?The mayor of Panglao welcomed the decision of the National Economic Development Authority to increase the project cost of the proposed airport on the resort island from P4.3 billion to P7.5 billion.

"It is a very welcome development. Anything that is good for the Panglao airport is good enough for me," said Panglao Mayor Benedicto Alcala in a phone interview Friday.

The Neda board earlier approved the change in the project cost of the Panglao Island Airport Development Project by about 76 percent from P4.27 billion to P7.54 billion.

The project aims to develop an airport on Panglao to comply with domestic and international standards for operational safety and efficiency. It is expected to spur the local economy and enhance the tourism potential not only of Bohol but also that of the entire Central Visayas region.

A Neda statement on Friday said that the project cost rose due to the increase in prices of major items, a modification of the design and expansion of the land to be acquired for the facility.

"The important thing is for the project to materialize," Alcala added.

The project, which will be implemented by the Department of Transportation and Communication through the Manila International Airport Authority, will be financed with funds from the MIAA (40 percent or P3 Billion) and the DOTC (60 percent or about P4.5 billion).

Construction is expected to start by the first semester of 2010 and will be completed in 2012.

At present, the only visible progress is the P110-million road expansion project from Tagbilaran to Panglao.

The road project became controversial when Alcala complained about the cracks on the concrete road even before it could be completed.

The Department of Public Works and Highways, however, nipped the controversy in the bud by ordering the contractor to repave the cracked portions of the road.

DWPH regional director Josefino Rigor ordered the remedial measures after Alcala's complaint attracted the attention of the Bohol media.

The airport project was pushed during the incumbency of ex-Governor Constancio Torralba whose term ended in 1992.

It has been overtaken by other airports but interest was revived when President Gloria Macapagal-Arroyo made a commitment to finish the Panglao airport before her terms ends next year.