Monday, 26 May 2025, 12:09 pm

    Government fast-tracking modernization of Philippine airports to boost growth, improve connectivity

    Transportation Secretary Jaime Bautista said Monday the government is embarking on a sweeping plan to modernize the country’s airport infrastructure to expand capacity, enhance safety, improve connectivity and drive economic growth through a series of transformative projects.

    Speaking at the aviation forum organized by San Miguel Corp. and the Economic Journalists Association of the Philippines, Secretary Bautista highlighted the pivotal role of the privatization of the operations of the Ninoy Aquino International Airport—the country’s premier gateway—that San Miguel’s New NAIA Infra Corp. recently won. Its operation will be turned over to the New NAIA Infra on 14 September.

    Bautista said the privatization of the operations of NAIA, which has been in the work’s for three decades, but finally fast-tracked under a public-private partnership, will significantly boost the international airport’s capacity and generate revenue that could be use for development of airports and other transport infrastructure over the 15-year concession agreement with the New NAIA Infra.

    “This game-changing public-private partnership project will increase NAIA’s passenger capacity from 35 million to 62 million annually, and generate approximately P900 billion in government revenue over time,” Bautista stated.

    Beyond NAIA, Bautista outlined a comprehensive plan to upgrade and develop multiple airports across the Philippines. He said the modernization plan will comprise 90 airports, including 45 with commercial operations, which will require more funding from Congress as well as from bilateral and multilateral lenders.

    Among the notable projects discussed were the relocation of Zamboanga Airport and the construction of the New Dumaguete Airport.

    Bautista detailed that the Zamboanga Airport will be moved 15 kilometers from its current site, with land acquisition expected to take 2-3 years and construction beginning in 4-5 years. Meanwhile, the New Dumaguete Airport, located 12 kilometers south of Dumaguete, is already in the land acquisition phase, supported by a $260 million loan from the Korean Export-Import Bank.

    He said development of the Siargao Airport and the expansion of the Masbate Airport, noting that the latter will be implemented over the next 3-5 years.

    Additional initiatives include the development of Kalibo and Caticlan airports, with plans to use Kalibo for larger aircraft. The Secretary also mentioned upcoming projects in Itbayat, Siquijor, and Maasin, Leyte, funded by the government and in cooperation with the Department of Public Works and Highways and other partners.

    Bautista outlined future plans for the Bulacan Airport, which will operate under a 50-year concession agreement and be transferred to the Republic of the Philippines at the end of the period. He also discussed the ongoing efforts to privatize certain airports, with Laguindingan Airport’s Swiss challenge to the proposal of Aboitiz Infra set for September 13. Bautista said two groups have expressed interest to submit alternative development plans.

    A new airport in Bukidnon is expected to start operating next year, he said.

    Bautista said the Department of Transportation has also engaged the Asian Development Bank, and the World Bank and its unit, the International Finance Corp., to help in the privatization of other airports. He said one conglomerate has already expressed interest in the privatization of a major airport.

    The Secretary concluded his speech by emphasizing the significance of these projects for the country’s economic growth.

    “Our goal is to enhance mobility and connectivity for people and goods, supporting the nation’s development and positioning the Philippines as a key player in global aviation,” Bautista said.

    Secretary Bautista’s ambitious plans for airport modernization reflect a bold vision for transforming the Philippines’ aviation infrastructure, aiming to elevate the country’s position on the global stage and significantly improve air travel experiences for millions of passengers.

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