Lio Tourism Estate and Airport ancestral land dispute triggers cease-and-desist-order

Lio Tourism Estate, a masterplanned luxurious development in El Nido, on the northern tip of Palawan – owned by Ayala, one of the largest conglomerates in the Philippines, and operated by one of its many subsidiaries, Ten Knots Philippines Inc. (TKPI) – encompasses a large 325-hectare site. As well as high-end hotels the resort contains its own private airport, Lio Airport, owned and operated by TKPI for the exclusive use of its aircraft. As with most airports worldwide the response to Covid-19 led to Lio Airport reducing operations, but by March 2022 about 600 passengers were flying in and out each day. AirSwift Philippines operates flights between Lio Airport and Manila. There is also a jetty port for visitors to embark on island-hopping boat trips. The tourism project, on a former copra (coconut) farm, began with construction of the airport and seaport to provide access, followed by accommodation and retail facilities. Shown below are satellite imagery and a site development plan published by a property firm.

But the Tagbanua Tandulanen Indigenous People (IP) claim that the project encroaches on their ancestral lands. In April 2021 their attorneys requested that the Department of Tourism (DOT) and Local Government Unit of El Nido cancel, revoke or deny applications for building permits and licenses for more than seven Ayala-owned businesses and projects in El Nido, including Lio Tourism Estate and Lio Airport. The IP group claimed ‘rampant and widespread’ proliferation of illegal transfers and conversion of their ancestral domain. On 15th March 2022, following reports of projects and activities that did not comply with Free and Prior Informed Consent (FPIC) requirements, the National Commission on Indigenous Peoples (NCIP) intervened in the land dispute, issuing a cease-and-desist-order (CDO) ordering temporary halt of projects in Barangays Libertad and Pasadeña. After issuing four notices to comply with the CDO NCIP issued a show cause order to TKPI on 13th February 2022. In March Tagbanua Tandulanen IP’s legal counsel said the group been sending letters to TKPI for two years without receiving a serious response and urged NCIP to maintain the CDO.

Extending northwards of the tourism estate developed area and Lio Airport is a 4.2 kilometre stretch of white sand beach, also part of the resort. In September 2017 the management of Lio Tourism Estate dismissed accusations that its recently opened upscale resort had blocked access to the public beach in front of it for residents of Barangay Villa Libertad. The issue stemmed from a complaint to the Palawan Provincial Board’s Environment Committee. A month previously Board Member Winston Arzaga said they had been asked by local officials to help resolve the issue, saying “The cause of it all is the access of local fishermen to their traditional fishing grounds which the Ayala management had somehow restricted.” A Safeguards Due Diligence Report for El Nido tourism development, prepared by the Tourism Infrastructure and Economic Zone Authority (TIEZA) for the Asian Development Bank (ADB), published in May 2021, includes notes of a consultation on fisheries management concerns and livelihood projects with Barangay Officials of Villa Libertad, which covers Lio beach, part of Lio Tourism Estate. Dwindling fish catch was the major fisheries issue identified by informants, resulting from overfishing and a reduced fishing area. Declining fish catch and reduced access to fishing grounds was also mentioned in relation to three other Ayala resorts in El Nido, on the islands of Miniloc, Pangulasian and Lagen.

More information about the land dispute and issues with access to fishing grounds related to Lio Tourism Estate and Lio Airport has been published on EJatlas, the world’s largest, most comprehensive online database of social conflict around environmental issues: Lio Tourism Estate and Lio Airport

Long term land tensions over Nadzab Airport Redevelopment Plan (NARP) and Airport City

Plans for airport city style development at Nadzab Airport – located 42km to the northwest of Lae, capital of the Morobe Province and Papua New Guinea’s second largest city – emerged in a 2011 masterplan for future growth of the airport both as an aeronautical hub and as a commercial and industrial centre. Nadzab Airport’s extensive land holding was earmarked for development and expansion over a time-frame of 50-70 years. The graphic below, showing a business hub next to the airport, is from Nadzab Central Strategic Plan, produced by Planpac and identifying development opportunities for 700 hectares of greenfield land.

Nadzab Central Strategic Plan. Graphic: PLANPAC
In 2012 PLANPAC developed a Strategic Land Use Masterplan for Nadzab Central Strategic Plan, a business hub next to Nadzab Airport, with 700 hectares of greenfield land on a 1,100 hectare site. Graphic: PLANPAC

Tensions between clans over ownership of land parcels date back to the inception of the airport project, in 1972 when the country was under Australian colonial administration. A loan agreement between the Japan International Cooperation Agency (JICA) and the PNG government – for ¥26,942 million (USD225.2 million) of an estimated project cost of ¥32,246 million (USD269.6 million) – was signed on 14th October 2015 and the project came to be known as Nadzab Airport Redevelopment Plan (NARP). Plans for an Airport City were mentioned in 2017 and in February 2020 NARP project manager said it was a major airport and city development and the provincial government must help address landowner issues. Prime Minister James Marape tasked Lands and Planning Minister John Rosso to start mobilising landowners in preparation for the project. In April 2021 PNG National Airports Corporation (NAC) managing director and chief executive Rex Kiponge said that upon completion of NARP the airport city concept would be rolled out, saying “When the airport is complete, the commercial aspects of the airport business hub must complement it.”

The village of Gabsongkeg is at the centre of NARP and landowners have made repeated calls for consultation, participation in the project and spin-off business opportunities. In 2020 landowners were disappointed that construction and security contracts were awarded to outsiders overlooking reputable local businesses. In January 2022 it was reported that only a small number of landowners were benefitting from leasing their customary land for associated businesses. Local people impacted by airport development still lack clean running water, electricity and adequate health facilities. NARP and other projects, such as a 4-lane highway and gold and copper mining, have triggered an influx of people, disrupting the social fabric and leading to increased social problems including violence, killings and drug & alcohol abuse. The area lacks a police station to address these issues.

Serious social problems of rape, underage marriage and prostitution specifically harm women. And women have been marginalized in land-related negotiations and decisions due to government assumptions of patrilineal land descent. Yet in the midst of these difficulties 60 Gabsongkeg women – planning ahead as most of the land in Gabsongkeg where coconut, plantain, cocoa and other trees are cultivated, is set to be taken over by the Nadzab township development – have established table markets selling food and other goods. They have increased their incomes and aim to grow their ventures into small-medium sized enterprises to support their families in the future.

Further information about contested land and other issues arising from Nadzab Airport has been published on EJatlas, the world’s largest, most comprehensive online database of social conflict around environmental issues: Nadzab Airport Redevlopment Plan (NARP) and Airport City, PNG