The Aurora Pacific Economic Zone and Freeport Authority (APECO) is taking a major step in its investment promotion drive with the launch of commercial operations at its airstrip in Casiguran town by the second half of the year.

APECO President and Chief Executive Officer (CEO) Gil Taway IV said the 1.32-kilometer (km) airstrip, which is envisioned to become an airport, is now finalizing the necessary corrective measures to receive the government’s nod for a permit to operate (PTO).

Currently, the airstrip is only allowed to accommodate chartered flights through a one-time permit (OTP) issued by the Civil Aviation Authority of the Philippines (CAAP).

Taway said the investment promotion agency (IPA) is now in the process of installing fencing and apron markings along the airstrip, while also awaiting the delivery of a fire truck for emergency response.

APECO is likewise preparing the bidding documents for a passenger terminal building, valued at around ₱31 million, based on CAAP estimates.

Taway said they will likely bid out the project by February, with a target completion date in the third quarter of the year.

“Once we finish that, and we already have a PTO, we can already transition from chartered flights to commercial operations,” Taway told reporters on Tuesday, Jan. 6.

For the start of its commercial operations, APECO is targeting turboprop planes or smaller aircraft that can handle 40 to 60 passengers.

The agency is upbeat about the launch of commercial flights this year after it secured higher funding under the ₱6.793-trillion 2026 national budget.

Based on the newly signed General Appropriations Act (GAA) for the year, APECO received an allocation of ₱381.54 million, up 49 percent from its budget last year of ₱256.02 million.

While it is not earmarked in this year’s budget, Taway said he is considering tapping the agency’s savings to further upgrade the airstrip through the construction of an air traffic control tower.

He said APECO would need around ₱39 million to build this facility.

Last year, APECO disclosed plans to develop the airstrip into a commercial airport that would serve as a direct link between Aurora province and local and foreign investors.

To further enhance its investment promotion, Taway said this year’s spending plan is focused on completing infrastructure projects to make the ecozone a more appealing destination for investments.

These include the second phase of a sewage treatment plant and the unfinished corporate campus building, which will be bid out this quarter.

The agency is also moving forward with the second phase of its four-lane expressway and grand lagoon project, alongside the construction of a convention center and the rehabilitation of previously abandoned beachfront villas that would add 48 new hotel rooms.

Meanwhile, Taway said the updating of the feasibility study for the proposed Casiguran International New Port will begin this month.

APECO earlier inked a tripartite agreement with South Korea-based Yooshin Engineering Corp. and homegrown Lordsbridge Resources Corp. for the conduct of a new study for the project, replacing the 2011 study by Export-Import Bank of Korea (Korea Eximbank).

Under the initial study, the cost of building the seaport would be around ₱4.7 billion.

Based on the current timeline, construction of the project is expected to commence by the fourth quarter of 2027 or the first quarter of 2028 at the latest. Operations of the facility are set to start in 2030.