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PIA Press Release
2008/08/06

Work on Laguindingan International Airport development project continues

by Babes Jacob-Rebultan

Cagayan de Oro City (6 August) -- THE construction of the Laguindingan International Airport, one of the flagship projects of the Arroyo administration under the Mindanao Super Region program, is underway and targeted for completion by January 2012 based on the revised timetable set by the Department of Transportation and Communications (DOTC).

According to a DOTC-10 project status report, that as of July 31, this year, the main civil works that started January 2008 with a project cost of P4.991 billion is now 3.65% complete where mobilization activities at the site is currently undertaken by the Hanjin Heavy Industries and Construction (HHIC), a korean company.

The work includes the construction activities, construction of the Project Monitoring Office (PMO)/engineer's facilities and earthworks at airside and landside areas.

The acquisition of the access roads within the 24.11-hectare land had been completely acquired with a project cost of P32.719 million and the titling activities of the acquired properties are ongoing.

The construction of the access roads that started in July 2007 is now 48.9% complete. Its construction activities include embankment works, sub-grade preparation works, sub-base preparation works and drainage works.

Its detailed engineering and civil works procurement had been completed and the construction is scheduled to be fully accomplished by December 2008.

Also, the report stated that the civil works for the construction of the perimeter fence of the airport that was started in July, 2002 is 76.8% accomplished, but was temporarily suspended pending the acquisition of 94 hectares, the additional donation of the Ayala Corporation due to the non-completion of conversion of the affected properties from agricultural to commercial/industrial.

The main airport is situated in a 387.68-hectare land in Laguindingan town, west of Misamis Oriental and about 32 kilometers from the city of Cagayan de Oro and halfway towards Iligan City in Lanao del Norte.

Of the 387.68 hectares, a total of 289.97 hectares or 74.8% had been totally acquired, including the first donation from the Ayala Corporation.

The remaining lot to be acquired is still 94.39 hectares for additional donation by the Ayala and 3.32 hectares for acquisition from individual land owners other than the Ayala properties.

With this, a Memorandum Of Agreement (MOA) between Ayala Corporation, Department of Agrarian Reform (DAR) and DOTC was signed on August 31, last year, which stipulated that Ayala will donate the 94.04 hectares after the approval of land use conversion in which DOTC acts as co-petitioner.

On July 15, 2008, the Land use conversion order was issued by DAR-central office.

The construction of the airport is based on international standards with a total project cost of P7.853 billion and is funded from a loan undertaken by the Philippine government with the government of Korea.

The total loan is payable in 20 years to be shouldered by the national government.

Once completed and operational by 2012, the Laguindingan airport is expected to cater to domestic flights and later to international flights, which will result to the closure of the more than 50 year-old Lumbia airport in Cagayan de Oro.

It will create employment, boost tourism and will accelerate and sustain the economic growth of the province, Northern Mindanao and entire island of Mindanao as a whole.

The presence of the airport will also boost the agri-business activity of the region as envisioned in the Mindanao Super Region strategy of the Arroyo administration. (PIA-10/MisOrOccCam) [top]

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