Aboitiz InfraCapital Completes Runway Upgrades at Laguindingan Airport

Aboitiz InfraCapital (AIC), Inc., the infrastructure arm of the Aboitiz Group, has completed a series of significant runway upgrades at Laguindingan International Airport (IATA: CGY, ICAO: RPMY). The maintenance work is a key first step in a broader modernization plan aimed at enhancing safety and increasing the operational capacity of the second-busiest airport in Mindanao.

The improvements address immediate safety requirements and lay the groundwork for a long-term development project managed by AIC under a Public-Private Partnership (PPP) agreement. For Northern Mindanao, the upgrades signify a commitment to bolstering a critical economic gateway that served 2.35 million passengers in 2025, already exceeding its designed initial capacity of 1.6 million annually. This project aligns with a national strategy to leverage private sector investment for upgrading the Philippines' regional airport infrastructure.

Runway Upgrade Details

The recently concluded maintenance focused on critical airside surfaces. According to project details, the scope of work included comprehensive rubber removal from the runway—a necessary procedure to clear accumulated tire deposits that can reduce braking effectiveness. The project also involved repainting runway markings for improved visibility, detailed inspections of the pavement, and the repair of surface cracks to ensure structural integrity. These actions were carried out in close coordination with the Civil Aviation Authority of the Philippines (CAAP) to ensure compliance with national aviation safety standards.

Rafael M. Aboitiz, AIC Vice-President and Head of Airports, stated, “As the operator of Laguindingan International Airport, we take a proactive approach to maintaining and improving critical airside infrastructure. These runway enhancements reflect our ongoing responsibility to ensure that the airport remains capable of supporting current operations while preparing for future demand.”

A P12.75 Billion Modernization Mandate

These runway enhancements are the initial phase of a much larger undertaking. Aboitiz InfraCapital officially took over the operations and maintenance of the airport in April 2025 following the ceremonial signing of a concession agreement on October 28, 2024. The agreement, facilitated by the Department of Transportation (DOTr) and CAAP, grants AIC a 30-year concession to upgrade, operate, and maintain the airport.

The total investment for the modernization project is pegged at P12.75 billion, according to the PPP Center of the Philippines. The development plan is structured in two major phases. Phase 1 aims to expand the airport's passenger capacity from its current 1.6 million to 3.9 million passengers annually. A subsequent Phase 2 is planned to further scale capacity to 6.3 million passengers per year, accommodating projected growth in regional travel and commerce.

Regulatory and Strategic Context

The Laguindingan International Airport project is a cornerstone of the Philippine government's strategy to modernize its infrastructure through private sector collaboration. It is the third national PPP project awarded and signed following the enactment of the new PPP Code of the Philippines (Republic Act No. 11966) in December 2023. This regulatory framework is designed to streamline and encourage private investment in critical public infrastructure.

The project underscores a wider trend of developing regional airports to de-congest the main gateway in Manila and stimulate economic activity across the archipelago. This strategic focus includes upgrading facilities to handle larger aircraft and enabling night-rating capabilities to increase flight schedules.

Raul L. Del Rosario, CAAP Director-General, commented on the collaborative nature of such projects: “Sustaining airport infrastructure is an ongoing process that relies on cooperation between regulators and airport operators. Continued coordination across stakeholders helps ensure that facilities like Laguindingan International Airport remain well-maintained and capable of supporting the region's growing connectivity needs.”

Why This Matters

The completion of these initial runway upgrades at Laguindingan Airport is more than a routine maintenance event. It represents the first tangible outcome of a major, long-term private sector-led airport modernization project in the Philippines. This development signals a firm commitment to improving safety and capacity at a key regional economic hub, providing a framework for future airport PPP projects in the country.