Aboitiz, Ang and airports: Billionaires bet on aviation boom

NEW LIFE A new and improved Laguindingan International Airport in Misamis Oriental is coming up soon, courtesy of the Aboitiz Group. —PHOTO FROM FACEBOOK OF CAAP AREA X

Build and they will come.

Billionaires Sabin Aboitiz and Ramon Ang are keen on making the Philippines more accessible to tourists who are big spenders when vacationing here, a country known for its beautiful beaches and scenic sunsets.

The tycoons—who have business interests in infrastructure, beverage, energy and banking, among others—have been heeding the call of the government to upgrade and operate more airports across the country in response to the growing travel demand.

The Aboitiz Group is now gearing towards realizing the P12.75-billion Laguindingan International Airport and P4.53-billion Bohol-Panglao International Airport projects by next year. The big-ticket contracts were bagged by Aboitiz InfraCapital Corp. just this year after no other rivaling bids challenged their unsolicited proposals.

READ: Aboitiz bags Laguindingan airport deal

The Laguindingan airport upgrade project seeks to improve connectivity to northern Mindanao, which includes Misamis Oriental, Misamis Occidental, Lanao del Norte, Bukidnon and Camiguin, among others.

AIC will rehabilitate the passenger terminal, install modern equipment and upgrade airside and landside facilities of the Mindanao airport.

For the first phase, the Laguindingan airport’s capacity will increase to 3.9 million passengers per annum (mppa) from the current mppa. It will be further expanded to 6.3 mppa during the second phase.

For the Bohol-Panglao airport, AIC will ramp up passenger capacity to 2.5 mmpa from 2 mppa within one to two years of its takeover. By 2030, the conglomerate will scale it up to 3.9 mppa.

The airport project, which has a 30-year concession period, covers the construction of a new passenger terminal and installation of additional equipment and facilities.

“This projected growth will have several multiplier effects, specifically in terms of enhanced connectivity, increased tourism, and significant economic opportunities for our regions and the country as a whole,” AIC president and CEO Cosette Canilao tells the Inquirer.

Prior to these, the Aboitiz Group built its airport portfolio with Mactan-Cebu International Airport as the anchor asset.

It gained complete ownership of the Cebu airport in October, two years after it entered into a P25-billion share subscription and transfer agreement with airport developers Megawide Construction Corp. and GMR Airports International BV.

“In the case of what could be one of our strongest industries, tourism, can only reach its full potential by having efficient and modern airports,” Aboitiz said during the signing of the Bohol-Panglao contract in Malacanang this month.

“We may have the most beautiful beaches in the world, the most beautiful islands and the most beautiful resorts in the world—which we do—but you need to get good airports to get there,” he added.

Ang’s airpot-dom

Ang is pretty busy himself as well. The infrastructure arm of San Miguel Corp. (SMC), like the Aboitiz Group, is taking on three major airport projects.

In February, SMC bagged the highly coveted P170.6-billion Ninoy Aquino International Airport (Naia) rehabilitation contract. “2025 will be a very busy year for us in terms of airport development. At Naia, where we are a partner, we expect to complete the foundational works we began upon taking over in September,” Ang tells the Inquirer.

Naia Terminal 4 has started undergoing renovation and safety upgrades, which are targeted to be finished by February next year.

READ: SMC to rent Nayong Pilipino property for airport project

In the immediate term, the SMC-led consortium will install new toilets and refurbish existing comfort rooms; place additional seating capacity; and install more air conditioning units.

San Miguel is also set to install better self check-in and self bag-drop counters to make travel more convenient for the passengers.

“Additionally, we’re replacing aging equipment and upgrading systems to modern standards. By focusing on these core operational improvements, we are creating a more functional, efficient, and passenger-friendly Naia,” Ang adds.

This month, San Miguel inked a 25-year lease agreement of Nayong Pilipino property with the government to build airport facilities.

Even before securing this contract, SMC has been working on the P740-billion New Manila International Airport (NMIA) project.

The Bulacan airport project is expected to accommodate up to 100 million passengers annually at full capacity. It is designed to have four parallel runways, a terminal and an interlinked infrastructure network that includes expressways and railways.

SMC encountered a delay with the construction due to a supply chain issue, deferring the completion by a year later in 2028.

“For our NMIA project, land development has resumed after resolving sand sourcing challenges. NMIA is set to become the country’s largest international gateway, and work is progressing across multiple fronts, including site preparation, road network development, and biodiversity initiatives for migratory birds,” Ang says.

Meanwhile, San Miguel recently tapped Megawide Construction Corp. to design and build the Caticlan Airport, the gateway to Boracay Island.

Ground-breaking ceremony is set to happen early 2025. Construction is expected to be finished in less than three years.

Public-private partnership

The private sector has been playing a major role in the country’s infrastructure drive to help the government free up its limited fiscal space.

In fact, the Public-Private Partnership (PPP) Center of the Philippines has a project development and monitoring facility (PDMF), which is a revolving fund supporting infrastructure projects in the country.

PPP Center deputy executive director Eleazar Ricote, in a briefing this month, said the PDMF got a fresh $30 million funding from a loan extended by the Asian Development Bank.

The technical assistance extended by the office includes consultancy services for project preparation and transaction advisory, he noted.

The PPP Center also helps in conducting the feasibility study to fine tune the proposed projects, which usually are airports, railways and bulk-water supply facilities, among others.