The long awaited concession agreement for the management of the Bohol Panglao International Airport (BPIA) is a welcome development.
This was the statement of Cong. Edgar Chatto following the signing by the Department of Transportation (DOTr), the Civil Aviation Authority of the Philippines (CAAP), and Aboitiz InfraCapital, Inc. (AIC) on December 18, 2024 of a landmark agreement to manage, operate, and extend the BPIA.
“This ensures convenience and safety of the traveling public including local residents and tourists. It will stimulate more investments and create jobs for Boholanos and Filipinos,” Chatto said.
“This Public Private Partnership project took years to be finalized,” Chatto, in whose term as governor the airport was completed, added, of the project that was stalled by the effects of the COVID pandemic on the tourism and travel industry.
He also cited the strong support of stakeholders to push for the project’s realization.
The concession agreement marks a significant advancement in the government’s push for public-private partnerships (PPP) in infrastructure development, CAAP said in a press release.
This grants AIC a 30-year concession period to upgrade, expand, operate, and maintain the Bohol-Panglao International Airport starting from the turnover of its operations and maintenance (O&M), the statement explained.
Aside from immediately addressing the airport’s operations and maintenance, the project is seen to boost regional economic development, help decongest Manila’s Ninoy Aquino International Airport, and establish the airport as a model for efficient and excellent regional airport operations.
The P4.53-billion project will be done in two phases—increase capacity to 2.5 million passengers by 2026, and almost 4 million by 2030 from the current 2 million.
It is expected to generate P15 million in annual revenue during its first five years, rising to P200 million a year by the end of the concession period, President Bongbong Marcos stated.
Key government officials, local leaders, and private sector representatives attended the signing ceremony including Gov. Aris Aumentado, Congressional representatives Vanessa Aumentado and Alexie Tutor of the second and third districts, and Panglao Mayor Boy Arcay.
Chatto also met with NEDA Sec. Arsenio Balisacan, DOT Sec. Christina Frasco, DOTr Sec. Jimmy Bautista, DOF Sec. Ralph Recto and DOF Usec. Rolly Tungpalan who he thanked for steering the final approval of the PPP Project.
Representing the Aboitiz Group of Companies were President and CEO Sabin M. Aboitiz, President and CEO of Aboitiz Infra Capital Cosette Canilao and Aboitiz Group Vice President Vince Tan.
Also present in the event was Senate Finance Chair Sen. Grace Poe.
The BPIA is the third airport PPP project to be awarded and signed following the enactment of Republic Act No. 11966 or the PPP Code of the Philippines in December 2023.