Aboitiz Group bullish on Mindanao’s economy
MindaNews / 14 October – The Aboitiz Group remains bullish on Mindanao’s economy, with its infrastructure arm, the Aboitiz InfraCapital, Inc. (AIC), investing big on connectivity and utilities while continuing to explore opportunities across other key infrastructure segments geared towards making the island-region more competitive and connected.
AIC, through Aboitiz InfraCapital Laguindingan Airport Corporation, currently operates the Laguindingan International Airport (LIA) in Misamis Oriental.
It is presently undertaking the modernization of LIA over the short- to medium-term beginning April 2025, following the awarding of a 30-year concession agreement in October 2024. The facelift includes terminal expansion to cater to additional international connections and growing passenger traffic.
During the Davao Investment Conference (Davao ICON) 2025 held last month in Davao City, Christine Villanueva, AIC Airports head of strategy and communications, highlighted the crucial role in connectivity that airports play to boost regional and national growth.
“Connectivity builds economies. From trade routes to transport hubs, when we move better, we grow faster. Airports are not just travel terminals — they are engines of economic activity,” she said during the panel discussion entitled “Building Gateways for Mindanao’s Progress: Developing World-Class Airports.”
“Developing world-class regional airports will be key to unlocking Mindanao’s potential,” she added.
In a statement on Tuesday, Villanueva noted that 2025 marks a pivotal year in AIC Airports’ transformation into a leading multi-airport operator in the Philippines, with its portfolio — which includes LIA, the award-winning Mactan-Cebu International Airport (MCIA), and Bohol-Panglao International Airport (BPIA) — collectively accounting for at least 20% of the country’s passenger traffic.
Regarding LIA, she said that AIC envisions it to become a regional gateway similar to MCIA, serving as a platform for commerce, tourism, and innovation in Mindanao.
LIA – the country’s sixth-busiest gateway and Mindanao’s second-busiest after Davao City’s Francisco Bangoy International Airport – now caters to about 337 flights per week to some of the country’s most attractive destinations, namely Manila, Cebu, Iloilo, and Davao.
Also during the Davao ICON, Ronnie Lim, general manager of AIC water subsidiary Apo Agua Infrastructura, Inc., showcased the development and impact of the Davao City Bulk Water Supply Project (DCBWSP), a joint partnership with the Davao City Water District (DCWD).
As the country’s largest bulk water supply project, the DCBWSP delivers 300 million liters per day of water. Through the Apo Agua-DCWD partnership, over one million Dabawenyos now enjoy 24/7 access to potable water, according to the statement.
“Beyond households, this supports livelihoods, enables businesses to expand, and gives investors the confidence that utilities here can keep pace with growth,” Lim said.
He noted that through Apo Agua, the DCBWSP has generated at least P15 billion in investments, thousands of jobs, and significant contributions to Davao’s economy.
In Davao City, the Aboitiz Group also owns the Davao Light and Power Company, Inc., the country’s third largest electric distribution utility.
Both the DCBWSP and the LIA are Public-Private Partnership (PPP) projects.
Frocks Roque, AIC First Vice President for Investments, noted the importance of PPPs in ensuring sustainable and efficient infrastructure development to drive economic growth.
“The delivery of quality service must be the primary motivation for the development and operation of PPPs. That means having clear, output-specific key performance indicators and linking financial benefits directly to performance. Strong public-private collaboration is essential to create an enabling environment for these partnerships to thrive,” Roque said.
Roque emphasized that PPPs work best when both the public and private sectors align their goals toward shared impact — combining private sector efficiency and innovation with public sector vision and inclusivity.
The Aboitiz Group is a Visayas-grown conglomerate with major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence. (Bong S. Sarmiento / MindaNews)