Three-way battle looms for Laguindingan airport

MANILA, Philippines — The Aboitiz Group will possibly face two challengers to its P12.75-billion bid to rehabilitate and upgrade the Laguindingan Airport in Misamis Oriental.

Laguindingan Airport is an international gateway in Northern Mindanao that serves the cities of Cagayan de Oro, Iligan and Marawi, as well as the provinces of Misamis Oriental, Lanao del Norte and Bukidnon.

Transportation Undersecretary Roberto Lim confirmed to The STAR that the Aboitiz Group may contend with two groups over its unsolicited offer to operate and maintain the airport.

Lim said the tandem of businessmen Lucio Co and Jefferson Cheng has paid the participation fee of P250,000 to enter the challenge process for the Laguindingan Airport.

The duo used to lead the Asian Airport Consortium that competed with the group headed by San Miguel Corp. in the bidding for the upgrade of Ninoy Aquino International Airport.

The eventual winner, the SMC-led New NAIA Infrastructure Corp., committed to the government a revenue split of 82.16 percent from airport operations. The consortium beat the 33.3 percent tender made by the GMR Airports Consortium and the 25.91 percent bid placed by the Manila International Airport Consortium (MIAC).

The Aboitiz Group served as a member of MIAC, meaning it may go head to head with Co and Cheng again if the partners push through with their bid for Laguindingan Airport.

Lim also said a law firm paid the participation fee to take part in the challenge process, but the Department of Transportation (DOTr) has yet to identify what group it is representing.

With two possible challengers, Lim expects a competitive bidding for the right to operate and maintain the Laguindingan Airport, one of the main gateways to Northern Mindanao.

Aboitiz InfraCapital Inc. (AIC) holds the original proponent status for the P12.75 billion upgrade of the airport. As such, AIC can match any offer to be made by the challengers.

Recently, the DOTr has issued the instruction to challengers for the bidding of the Laguindingan Airport. Under it, challengers must present a net worth of at least P3.8 billion.

If the challengers form a consortium, members who own an equity of at least 25 percent may be added together to determine the net worth.

The DOTr expects to award the concession for the Laguindingan Airport before the close of the year.