President Ferdinand Marcos Jr. on Monday witnessed the signing of the Laguindingan Airport Public-Private Partnership (PPP) project concessionaire agreement for the upgrade of the terminals and expansion of facilities to increase passenger capacity and improve service efficiency.

The project will boost tourism, create jobs, and increase business activity in Northern Mindanao, Marcos said.

“For most travelers, airports provide a glimpse of what awaits them at their destination; it is an experience of its own,” he said.

“Air travel is already a challenge, but it is now up to us to offer seamless service so that our visitors will feel the warmth and the welcoming nature of Filipinos,” he added.

Laguindingan Airport, which first opened in 2013, serves the cities of Cagayan de Oro, Iligan and Marawi. It is also the gateway to the provinces of Misamis Oriental, Lanao del Norte and Bukidnon.

The airport is Mindanao’s second busiest, after the Francisco Bangoy International Airport in Davao City.

The concession period will last for 30 years, with operations handled by Aboitiz InfraCapital Inc.

Throughout the partnership, passenger movement is expected to increase from 1.6 million per year to 3.9 million during Phase 1, and then to 6.3 million in Phase 2.

This is the second airport in the Philippines to undergo privatization, following the Ninoy Aquino International Airport’s transfer of operations to the New NAIA Infra Corporation (NNIC), a subsidiary of the San Miguel Corporation conglomerate.

Transport Secretary Jaime Bautista said the PPP will transform Laguindingan into a fully operational international airport, enabling flag carriers to operate international routes in Asia.

Terminal fees

Bautista said that terminal fees would not be implemented for at least a year, or until the new operator has made improvements to the airport.

“For now, there are no [terminal fees]. But because the private sector will invest billions of pesos, there will be a small increase in terminal fees so that they can recover their investment,” he said in a press briefing following the ceremonial signing.

The Department of Transportation said the government will receive over P3.76 billion in revenue over the concession period, beginning with approximately P47 million in fixed payments in the first year.