Korean firm wins P2.61-B Puerto Princesa Int'l Airport deal

MANILA, Philippines — The Department of Transportation and Communications (DOTC) awarded the $82.9-million (P2.616 billion) contract to a South Korean company for the construction of the planned international airport in Puerto Princesa, Palawan.

Kumho Industrial Co. Ltd.-GS Engineering & Construction Joint Venture (Kumho-GS) won the bidding for a design-and-build deal to improve and add on the existing airport.

Transportation Secretary Joseph Abaya said in the awarding ceremony Tuesday that the airport project would be "modern" and "world-class" with an eco-tourism component.

"With beaches and other natural wonders attracting throngs of visitors from all over the globe, it will finally have a gateway that is befitting of [Puerto Princesa's] stature," Abaya said in a state news report.

Abaya said Kumho-GS will begin laying out the detailed engineering design by the third quarter of the year while various project permits are being obtained.

Civil works at the existing site, meanwhile, will start by the last quarter of 2014.

The project is slated for 30 months or more than two years before completion. Abaya said the agency is expecting the airport to open by early 2017.

He said that the international gateway will feature a new passenger terminal building, cargo terminal building, apron, connecting taxiways, a new air navigation system, and other support facilities.

"Apart from boosting our tourism sector, this project will also generate jobs, particularly in the infrastructure sector. Overall, the estimate is up to 1,400 total new jobs during construction alone," Abaya said.

Expected to pass through the new airport are two million passengers annually. Abaya said the existing airport, meanwhile, had a passenger count of 1.33 million in 2013 when its terminal could only accommodate an maximum of 350,000 passengers yearly.

A bulk of the project is funded through a loan from Korean Export Import Bank, which granted the Philippines $71.61 million.

The loan is payable in 40 years with a 10-year grace period and a concessional interest rate of 0.1 percent annually.

Guidelines for Procurement of Korea’s Economic Development Cooperation Fund also governed the bidding process. The fund limits contractors to South Korean firms. - Camille Diola