BY DAVE SUAN ALBARADO
The Philippine government signed a landmark 30-year concession agreement Tuesday with Aboitiz InfraCapital (AIC) to operate and expand the Bohol Panglao International Airport (BPIA), in a major advancement in the country’s ambitious infrastructure modernization program.
The comprehensive agreement, signed at the Malacañang Palace in Manila, brings together the Department of Transportation (DOTr), the Civil Aviation Authority of the Philippines (CAAP), and AIC in a partnership aimed at transforming BPIA into a model regional aviation hub.
Under the P4.53 billion agreement, AIC will assume operations and maintenance responsibilities starting June 22, 2025.
The project targets an ambitious expansion to accommodate 3.9 million passengers annually by 2030, addressing the growing tourism demands in Central Visayas.
“Through this landmark airport PPP project, the public can expect a dramatic improvement in overall passenger experience through modernized terminals, optimized airport capacity, and reliable operations that will serve the Filipinos for generations to come,” PPP Center Executive Director Ma. Cynthia Hernandez told reporters at the signing ceremony.
The signing ceremony, presided over by President Ferdinand Marcos Jr., drew Bohol provincial leaders including Bohol Governor Erico Aris Aumentado, First District Representative Atty. Edgar Chatto, Second District Representative Vanessa Aumentado, Third District Representative Alexie Tutor, and Panglao Mayor Boy Arcay.
The agreement represents the third airport public-private partnership (PPP) project awarded since the implementation of Republic Act No. 11966, known as the PPP Code of the Philippines, which was enacted in December 2023. This legislation has streamlined the process for private sector participation in critical infrastructure projects.
The country has been aggressively pursuing airport modernization projects. The project will decongest Manila’s Ninoy Aquino International Airport, which has long struggled with capacity constraints.
Bohol, a popular tourist destination, has emerged as a crucial tourism hub, famous for its Chocolate Hills, pristine beaches, and tarsier sanctuaries.
The BPIA, which began operations in 2018 replacing the outdated Tagbilaran Airport, was designed to handle increased tourist traffic and larger aircraft. The facility currently serves both domestic and international flights, though international routes have been limited.
Aboitiz InfraCapital, a subsidiary of the century-old Aboitiz Group, has been strategically expanding its infrastructure portfolio. The company has demonstrated growing interest in regional airport operations, positioning itself as a major player in the Philippines’ infrastructure development landscape.
CHATTO LEGACY
Former Bohol Gov. Edgar Chatto played a crucial role in the development and completion of the Bohol Panglao International Airport.
Chatto, who served as governor from 2010 to 2019, prioritized infrastructure projects that would enhance Bohol’s connectivity and economic growth.
He frequently cited the importance of the airport in his State of the Province Addresses, stressing its potential to generate unprecedented air and land traffic volume.
The airport, which was inaugurated in Nov 2018, was made possible through Chatto’s collaboration with Nat’l Govt in securing JICA ODA Funding. The land was secured in more than 30 years spanning the terms of 4 Governors & 4 Presidents since 1988 when the late Gov. Constancio Chatto Torralba conceptualized the project.
The project received approximately P8.9 billion pesos in funding, facilitated through various government agencies.
Chatto’s administration also worked to promote sustainable tourism in Bohol, recognizing the airport’s potential to increase visitor numbers. He advocated for policies that would enhance tourism infrastructure and services, while preserving the province’s natural beauty and cultural heritage.
The former governor’s vision for Bohol extended beyond the airport project, with projects aimed at positioning the province as a regional hub for tourism and economic activity. He initiated various projects, including improvements to local roads and public facilities, designed to support increased tourist influx and enhance overall provincial development.
Chatto’s leadership and commitment to the airport project have been credited with laying a strong foundation for Bohol’s future growth as a premier tourist destination. His efforts have been recognized by national leaders, including President Rodrigo Duterte, who inaugurated the airport in 2018.
According to Chatto’s State of the Province Address in 2018, the airport was expected to generate economic growth and increase air and land traffic volume.
The project has since been hailed as a major success, with the airport serving as the gateway to the province’s tourist attractions.