MANILA, Philippines — Dennis Uy’s Chelsea Logistics Corp. and Mega7 Construction Corp. have committed to invest some P49 billion and P12 billion, respectively, under their revised unsolicited proposals to operate, maintain, and expand provincial airports in Visayas and Mindanao which are currently under evaluation by the Civil Aviation Authority of the Philippines (CAAP).
Transportation Undersecretary Ruben Reinoso said the CAAP board met on Monday and agreed to consider both firms’ respective unsolicited proposal after the Department of Transportation (DOTr) favorably endorsed the projects to the agency, which has the jurisdiction over the regional airports.
CAAP and the project proponents will sit down in the coming days to discuss terms and conditions of the offers.
Reinoso earlier told The STAR that the DOTr’s planning office has endorsed in early September to CAAP proposals for the Kalibo and Davao airports.
“The board met on Monday and based on the evaluation undertaken by DOTr, they are now looking into the details of the proposals and then they will invite the proponent for some discussion for the contents of the proposals and then come to a conclusion and agreement on whether it is acceptable to CAAP, and then subsequently endorse it to the NEDA ICC for consideration,” Reinoso said.
Reinoso said both projects have a 30-year proposed concession period, with Chelsea’s offer consisting of some P49 billion investments, and Mega7’s proposal including about P12 billion.
Chelsea has submitted an unsolicited proposal for the Davao International Airport, while Mega7 made an offer for the Kalibo International Airport.
Chelsea has earlier submitted a bundled unsolicited proposal for a number of the country’s regional airports, but was rejected by the DOTr due to a change in policy direction.
The agency has instead asked the company to unbundle its proposal given that many of the airports can stand on their own, resulting in Chelsea picking the Davao International Airport.
Mega7’s earlier proposal was also rejected by the government as the proponent lacked experience in airport development, operations, and maintenance.