Aboitiz InfraCapital Inc. (AIC) has signed a 30-year concession agreement to expand, upgrade, and maintain the Bohol-Panglao International Airport, a project valued at ₱4.53 billion. The contract requires an initial ₱180 million in fees and securities to proceed.
The airport will undergo significant enhancements aimed at increasing its annual passenger capacity from 2.5 million to 3.9 million by the end of the concession period.
Financial and Regulatory Requirements
Image from Highways Today
To finalize the deal, AIC must meet several conditions, including a ₱100-million irrevocable standby letter of credit, ₱24.88 million in advisory fees to the Public-Private Partnership (PPP) Center, and a $945,000 success fee for the International Finance Corporation. Regulatory requirements, such as lender letters of intent and tax clearances, are also mandatory.
The expansion project aims to position the Bohol-Panglao International Airport as a key gateway to Bohol, a major tourism destination in the Philippines. The upgrades will also integrate sustainable technologies to maintain the airport’s eco-friendly status.
Broader Implications
The Bohol-Panglao Airport expansion is part of the Philippine government’s push to modernize aviation infrastructure through public-private partnerships. Other projects under consideration include airports in Iloilo, Kalibo, Puerto Princesa, and Davao, with competitive proposals from firms such as Prime Asset Ventures and Mega7 Construction Corp.
Aboitiz InfraCapital has established itself as a major player in airport development, with prior success in managing the Laguindingan Airport in Northern Mindanao.
Once completed, the expanded Bohol-Panglao Airport is expected to strengthen Bohol’s role as a leading tourist destination and contribute to the country’s economic growth. The project reflects the importance of public-private partnerships in addressing infrastructure gaps in the Philippines.
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