DOTr, CAAP seek challenging bids for Laguindingan Airport upgrade

The Department of Transportation (DOTr) and the Civil Aviation Authority of the Philippines (CAAP) are calling on domestic and foreign firms to submit challenging bids for the privatization of Laguindingan International Airport’s operations and maintenance.

In a statement on Thursday, the Public-Private Partnership (PPP) Center said the DOTr and CAAP are inviting companies to offer “comparative proposals for the upgrade, expansion, operations, and maintenance of the Laguindingan International Airport.”

Under the previous administration, Aboitiz InfraCapital secured original proponent status for its unsolicited proposal to take over Laguindingan Airport.

The project was approved by the National Economic and Development Authority Board in July 2023.

In January, the NEDA Board approved the negotiated parameters, terms, and conditions (PTCs) of the project which paved the way for the government to open the competitive bidding to challenge the unsolicited proposal by Aboitiz InfraCapital.

With this, the P12.75-billion project will be undergoing a comparative challenge process following the rules under the newly enacted PPP Code.

Prospective challengers will be given 90 days from the publication of the invitation for comparative proposals to submit their proposals.

The invitation was published on the PPP Center’s website on February 22, 2024.

The PPP Center said the comparative challenge process involves the submission of comparative proposals to finance, design, construct, operate, and maintain the Laguindingan International Airport under a 30-year concession period.

“Prospective comparative proponents/challengers interested in participating may visit this link for the submission details,” it said.

If no comparative proposals are received, the project shall be awarded to the original proponent by May 2024, according to the NEDA chief.

The PPP Center said Laguindingan International Airport upgrade project is recognized as one of the Infrastructure Flagship Projects of the national government.

The project aims to enhance connectivity to the Northern Mindanao region, which includes five provinces: Misamis Oriental, Misamis Occidental, Lanao del Norte, Bukidnon, and Camiguin, along with the cities of Cagayan de Oro and Iligan.

 Moreover, the project seeks to define an aviation strategy for new airlines and connections including development of international flights, expand airport capacity according to market demand, introduce sustainable concepts, and enhance passenger experience through operational and environmental improvements.—RF, GMA Integrated News