MANILA, Philippines — A major change is being sought by the government on the unsolicited proposal of the Aboitiz Group to upgrade, operate and maintain the Bohol-Panglao International Airport after it failed to get the approval of the National Development Authority’s Investment Coordination Committee (ICC).
Transportation Undersecretary for planning Ruben Reinoso said the ICC has recommended to Aboitiz Infracapital to make an adjustment that would entail a major restructuring of the proposal.
“Panglao has four phases. After phase one, they will only start phase two after the adjustment of fees. We don’t want that. We said we are not going to guarantee any adjustment,” Reinoso said.
“What the ICC is now saying is let’s remove the augmentation, just make it O&M (operations and maintenance) only and then government will be the one to invest on the augmentation. The problem of the proponent is what if the government doesnt do the investment, then they will not be able to meet the minimum performance standards and specifications they have committed under the contract. If they cannot do that then they will be penalized,” he said.
To address the proponent’s concern, Reinoso said the government and Aboitiz InfraCapital is now working on a possible solution which could result in the proponent having to give two separate offers for the airport’s expansion as well as its O&M.
“Theyre trying to work it out wherein they will be able to submit purely O&M, in which phase one until phase two is limited to minor investments, and then their major investments like expansion and additional terminal they will have to resubmit as other proposal that will undergo a new approval process, outside the approval of the O&M that they are being asked to revise,” Reinoso said.
Reinoso said the issues have been discussed with Aboitiz president and CEO Erramon Aboitiz.
“He said they will resubmit. Mr. Aboitiz said he will get back to his people because this will be a major restructuring on the proposal. They would have to change their financial model. It’s not an easy work,” Reinoso said.
The DOTr endorsed last August to the NEDA-ICC Aboitiz Infracapital’s offer to upgrade, operate and maintain the Bohol-Panglao International Airport.
The proposal was among the airport projects which was earlier expected to be approved during the NEDA-ICC Cabinet Committee meeting last month.
While the proposal was discussed during the meeting, it failed to secure approval and instead was returned to the proponent for revision.
Aboitiz InfraCapital is the holder of the original proponent status for the Bohol-Panglao International Airport, meaning that it has the advantage to match better offers once Swiss challenge is undertaken for the project.