The Philippine Star, 05 November 2014
By Lawrence Agcaoili
MANILA, Philippines – The Department of Transportation and Communications (DOTC) is set to bid out a P14.6-billion operation and maintenance (O&M) contract for the Laguindingan airport next month.
Transportation Secretary Joseph Emilio Abaya said the government is set to bid out a contract to operate and maintain including an infrastructure component for the Laguindingan airport that was opened in June last year.
â€śDue to years of delay, Laguindingan was already at capacity by the time we opened it last year. To spare future administrations from similar issues, we are incorporating an infra expansion component into the operations contract that we will bid out in December,â€ť Abaya said.
The more modern Laguindingan Airport replaced the older Lumbia Airport in Cagayan de Oro. It was supposed to be operational way back in 2006. The Lumbia airport served a little over 1.6 million passengers per year
Passenger volume rose sharply and is expected to hit 2.58 million passengers by 2017.
Abaya said the public private partnership (PPP) project would be awarded in the third quarter of next year.
The enhanced 30 to 35-year contract would cover a civil works component worth P14.6 billion including the development and expansion of the cargo terminal building and the runway, and the construction of a new passenger terminal building starting the middle of 2016.
Meanwhile, night landing operations of the Laguindingan airport is set to start within the month as all the air navigation and airfield ground lighting systems have been installed and tested by the Civil Aviation Authority of the Philippines (CAAP).
â€śWe are happy to announce that the Laguindingan Airport is now equipped for night landing operations. We hope to activate evening flights by the end of November in order to give the public more flight options as well as to decongest the airport during the day,â€ť Abaya said.
In line with certain policies and procedures of the International Civil Aviation Organization (ICAO), officials from DOTC and CAAP are now conducting a joint inspection until Nov. 6 for safety purposes in order to double-check on any possible system defects.
CAAP would then prepare the standard guidelines for arrival and departure procedures for compliance by the airlines using the airport in Northern Mindanao.
After this, CAAP and the airlines would organize flight schedules to ensure orderly operations and to prevent air traffic and terminal congestion.
â€śNight flights mean more flights and more options for passengers. As the gateway to Northern Mindanao, this development will spur greater economic activity to the bustling business and tourist destinations in Cagayan de Oro, Bukidnon, Iligan, and neighboring areas,â€ť the DOTC chief added.
Rappler, 04 November 2014
By Mick Basa
Recently opened Laguindingan Airport will be undergoing expansion as the government is set to begin bidding out its operations and maintenance contact in December
MANILA, Philippines â€“ The government is slated to bid out the operations and maintenance contract of Misamis Orientalâ€™s Laguindingan Airport in December.
Upgrading the Laguindingan Airport, which would modernize the airportâ€™s facilities based on international standards, includes the expansion of its cargo terminal building and runway; and a construction of a new passenger terminal building, said Transportation Secretary Joseph Emilio Abaya.
â€śIt is meant to satisfy the projected number of passengers for the next 3 decades, as well as to maintain the airportâ€™s facilities and services at international standards,â€ť Abaya said in a statement on Tuesday, November 4.
The airport serves flights to Cagayan de Oro City, although it is located outside Misamis Orientalâ€™s provincial center. It replaced the aging Lumbia Airport in 2013.
Abaya pegged the project cost at P14.6 million ($324,913.76*), with a concession period from 30 to 35 years.
The airport has been serving 1.6 million passengers annually since it opened. By 2017, the figure would rise to 2.58 million, Abaya said.
â€śThe airport was meant to be completed way back in 2006, but was not fully executed until last year,â€ť he said.
Laguindingan Airport sits between Iligan City and Cagayan de Oro City.
Awarding of the contract to the winning bidder is scheduled in the third quarter of 2015, said Abaya.
Meanwhile, the DOTC announced that the airport may soon begin night operations, as the Civil Aviation Authority of the Philippines (CAAP) looks into the airportâ€™s night landing capacity until November 6. The development has elated commercial carriers.
â€śItâ€™s a very positive development as this will allow us to mount more flights especially this coming Christmas seasonâ€ť Philippine Airlines (PAL) president Jaime Bautista told Rappler.
Non-primary airports across the country lack instrument landing system, which limits them to operate only from sunrise to sunset, prompting some flights to be cancelled.
Meanwhile, Cebu Pacific Vice President for Corporate Affairs Jorenz Tanada said they have not received an official status of Laguindinganâ€™s night landing capability, but â€śwe will look at all our options and secure all necessary approvals to add more flights to and from Laguindingan Airport.”
Commercial carriers PAL Express, Cebu Pacific, and Air Asia Zest operate at the main gateway for northern Mindanao. â€“Rappler.com
13 June 2013, Rappler.com
Diversified conglomerate San Miguel Corp. is keen on participating in the plannedÂ bidding of the contract to operate and manage (O&M) the Laguindingan Airport.
“If the government offers it, we will join,” San Miguel president and COO Ramon Ang told reporters on Tuesday, June 11.
“We are interested in any Public-Private Partnership (PPP),” he added.
The P7.8-billion Laguindingan Airport in Misamis Oriental is the new gateway to northern Mindanao. It replaces Cagayan de Oro’s Lumbia Airport, which will be turned over to the Philippine Air Force.
Four airlines operating from Lumbia – Philippine Airlines (PAL), PAL Express, Cebu Pacific, and Zest Airways – have transferred to theÂ Laguindingan facility, which opens June 15.
The Laguindingan Airport sits on a 400-hectare property, whose master design was created in 2000.
It features a 2.1-kilometer runway and a 7,184-square meter passenger terminal building with a capacity of 1.6 million passengers per year.
The Civil Aviation Authority of the Philippines (CAAP) will temporarily operate the airport using Visual Flight Rules until a navigation equipment called Instrument Landing System is installed by May 2014.
President Benigno Aquino III led the final inspection of the airportÂ on June 11.
Joining him were Transportation Secretary Joseph Abaya, Misamis Oriental Governor Oscar Moreno, CAAP Director-General William Hotchkiss III, and South Korean Ambassador Hyuk Lee.
Businessman Jaime Augusto Zobel de Ayala, chairman of the Philippines’ oldest conglomerate Ayala Corp., was also there.
Apart from San Miguel, Ayala expressed interest to participate in the bidding of Laguindingan’s O&M.
TheÂ Ayala and San Miguel-Lucio Tan groups lead two of the 7 consortiumsÂ that were prequalified to join in the bidding of the country’s first airport PPP – the P17.5-billion Mactan-Cebu International Airport expansion project.
San Miguel, which owns legacy carrier PAL, was able to join after the Department of Transportation and Communications relaxed guidelines previously banning the participation of airline owners.
Ayala and San Miguel are competing against other big groups including the consortiums of Metro Pacific Investments Corp. and JG Summit Holdings Inc., Lopez-led First Philippine Holdings Corp., and the Henry Sy group.
The expansion of the Cebu airport involves the construction of a new world-class passenger terminal building with capacity of 8 million passengers a year. The airport served 6.2 million passengers in 2011, beyond its normal capacity of 4.5 million.Â - Rappler.com
Photo Caption:Â NEW GATEWAY. Newly built Laguindingan airport replaces the old airport in Cagayan de Oro as northern Mindanao’s main gateway. Photo by Giano Ligot
Business World, 14 September 2012
KOREAN businesses are interested in participating in the governmentâ€™s public-private partnership (PPP) projects, particularly for infrastructure, the Korean Chamber of Commerce Philippines said in an interview with reporters.
â€śThere is interest by Korean companies in infrastructure like airports and power plants including PPP projects,â€ť said Edward Eun-Gap Chang, president of the Korean Chamber, in an interview with reporters at the sidelines of the Joint Foreign Chambers networking night held late Thursday.
He added that Korean firms are also interested in setting up agricultural projects as well entering the renewable energy sector.
Korean firms were invited to bid for PPP projects by the Transportation department on July 12, particularly for the P557 million Laguindingan Airport in Misamis Oriental.
Only one PPP project has been awarded: the P1.956-billion Daang Hari-Southern Luzon Expressway Link Road won by Ayala Corp. on Dec. 15 last year.
Pre-qualification has finished for the P10.04-billion PPP for School Infrastructure Project, while an invitation to pre-qualify and bid for the P60-billion extension and management of Light Rail Transit Line 1 was published on June 4.
Mr. Chang noted that Korean firms like Korea Electric Power Co., Hanjin Philippines, Inc., Samsung Philippines and Hyundai Asia Resources, Inc. are interested in possibly expanding their operations in the country.
However, Mr. Chang said some projects â€śneed ownership of land and we are prohibited from doing that.â€ť
The Korean Chamber is also pushing for the establishment of a Korea-Philippines free trade agreement which it feels will facilitate the further growth of trade between the two countries.
â€śThere is no free trade agreement yet between the Philippines and Korea — between Korea and the ASEAN (Association of Southeast Asian Nations), yes, but we are willing to help promote bilateral agreements,â€ť said Mr. Chang.
â€śA bilateral agreement between Korea and the Philippines will allow the expansion of trade among certain goods,â€ť he added.
The chamber noted Korea is one of the top five trade partners of the Philippines as well as one of the biggest tourist groups that visit the country. –Â Emilia Narni J. David
13 July 2012, The Philippine Star
by Lawrence Agcaoili
Manila, Philippines – The Department of Transportation and Communications (DOTC) is eyeing large Korean firms to participate in the improvement of the air navigation system worth about P557 million at the Laguindingan Airport in Misamis Oriental.
Transportation Secretary Mar Roxas said the project would be funded by the Economic Cooperation Development Fund of the Republic of Korea through the state-owned Export-Import Bank of Korea.
Roxas said the airport development project is almost finished but the equipment including an improved instrument landing system, a Doppler radar, a communications system, an automated weather observation system, electrical works for the air navigation system, and aeronautical ground lighting system are still needed.
Roxas said about 90 percent of the civil works have been completed by the South Korea-based Yooshin Engineering Corp., the Schema Konsult, Inc., and the Hanjin Heavy Industries and Construction Co. Ltd.
Once opened, the DOTC chief said economic activity in the region would soar to new heights as the airport is envisioned to be a major trunkline air facility.
â€śThis will be a major trading and tourist hub. Its operation would have a multiplier effect in the region, and this would mean more jobs for the people,â€ť Roxas said.
The Laguindingan airport is eyed to be the main airport of Cagayan de Oro and Iligan cities in northern Mindanao, as a counterpart of the Davao international airport in Southern Mindanao.
It is expected to help boost Mindanaoâ€™s potential as a national food basket being an exporter of the countryâ€™s major agricultural exports such as banana and coconut.
Korea Eximbank is eyeing further interest rate cuts to be extended under its concessional loan facility to proponents of major infrastructure projects under the public private partnership (PPP) scheme of the government.
Korea Eximbank chief representative of the Manila office Tae-ik Park earlier said in an interview said the bank recently revised the regulation for its Economic Development Cooperation Fund (EDCF) wherein untied aid through PPP schemes would be given a further interest rate cut of 50 percent.
The bank oversees the operation of the official development assistance (ODA) program under the EDCF facility. Loans under the facility usually carry an interest rate of 0.15 percent per annum payable in 40 years inclusive of a 10-year grace period.