Davao, Kalibo airport proposals take off

MANILA, Philippines — The unsolicited proposals for the upgrade and maintenance of the airports in Davao and Kalibo gained headway as their proponents were granted original proponent status (OPS) for the projects.

In a statement, the Civil Aviation Authority of the Philippines (CAAP) said it has approved the P49-billion bid of Dennis Uy’s Chelsea Logistics Holdings Corp. for the Davao International Airport and Mega 7 Construction Corp.’s P3.8-billion proposal for the Kalibo International Airport.

“The CAAP Board, which is headed by Department of Transportation (DOTr) Secretary Arthur Tugade, has obtained the needed number of signatures from its members and released the grant of OPS in favor of the Kalibo and Davao proponents on Friday, Oct. 19, 2018,” the DOTr said.

The OPS granted to Chelsea Logistics Holdings will be for the operation, maintenance and expansion of the Davao International Airport. It will also offer a new technology to enhance passenger experience and an airport operator which captures data to deliver efficient operations.

The OPS given to Mega 7 Construction, meanwhile, will be for the operation, maintenance and upgrade of facilities and systems of the Kalibo International Airport.

“The DOTr and CAAP have no objections on the unsolicited proposals, subject to legal, technical and financial conditionalities,” DOTr added.

Both proposals also include the expansion of passenger terminal buildings, with a concession period for 30 years.

An OPS grant means both companies have the option to match counter-offers made by other parties under the mandatory Swiss Challenge.

The CAAP Board said it is in talks with the proponents of the two projects to facilitate completion of requirements by the National Economic and Development Authority (NEDA), which will still evaluate the proposals for approval.

Chelsea previously submitted a bundled unsolicited proposal for a number of 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.

Mega 7’s earlier proposal was also rejected by the government as the proponent lacked experience in airport development, operations and maintenance.

The Davao and Kalibo airports have been lined up for development and are among DOTr’s high priority infrastructure projects under the Duterte administration’s Build Build Build program.