DOF: New Bohol airport a perfect hybrid PPP plan

CEBU, Philippines —  The new Bohol International Airport on Panglao Island is a perfect example of a hybrid public-private partnership (PPP) project, according to the Department of Finance.

Finance Secretary Carlos Dominguez III in a statement said the new Bohol Airport is a “perfect” model for hybrid PPP “in which the government takes over the initial phase of the project and later bids out its operations and maintenance aspect to the private sector.”

Earlier, the Aboitiz Group announced its subsidiary Aboitiz InfraCapital (AIC) was granted the Original Proponent Status (OPS) by the Department of Transportation (DOTr) for the operations and maintenance of the new Bohol Airport, scheduled to commercially operate this month.

The OPS includes the operations and maintenance, future developments and expansion of the new airport on Panglao Island.

The DOF and the Japan International Cooperation Agency (JICA) signed last month a supplemental agreement extending a 4.376-billion yen loan to the Philippines to help fund the second phase of the airport project, which would cover the expansion of its runway and passenger terminal building.

Through JICA, Japan also provided funding support in the amount of 10.782 billion yen (approximately P5.18 billion or $237 million) for the first phase of the Bohol Airport.

The second phase of the airport project covered by JICA’s supplemental loan will include the extension of the runway from the current 2,000 meters to 2,500 meters to enable the airport to accommodate large commercial aircraft, and the expansion of the passenger terminal building from 8,500 square meters to 13,300 sq. m., in anticipation of the possible congestion that could arise should tourism traffic to the area rise faster than expected.

Using local funds, the DOTr is planning to further enhance the capacity of the airport by extending the runway to 2,800 meters, constructing a separate cargo terminal and a parallel taxiway, and building a fuel depot plus a fuel hydrant system, DOF said.

“We believe our proposal provides an expedient and comprehensive solution for the immediate and long-term needs of the New Bohol International Airport. We also remain committed and ready to support the government in its initiative to develop and enhance other regional airports throughout the country” AIC president and CEO Sabin Aboitiz had earlier said about the company’s proposal to operate the new airport.