Gov’t needs P10 B to upgrade aviation system

The government will need P10 billion in upgrading the country’s civil aviation communication, navigation and surveillance air traffic management (CNS/ATM) systems to a satellite-based system.

Sources from the Department of Transportation and Communications (DOTC)-Air Transportation Office (ATO) revealed the P900 million consultancy contract signed by Secretary Leandro Mendoza with a Japanese consortium would translate to some P10 billion cost on the part of the government for the upgrade.

The ATO source explained the consultancy contract price was expected to be 10 percent of the whole project.

“The bidders for the consultancy contract are expected to submit a bid price that would be equivalent to 10 percent of their estimated cost for the whole project. Since the consultancy contract is around P900 million, then the project would cost not less than P9 billion,” the official said.

The ATO, it was learned, has long been pushing for the project, recognizing the vintage condition of the air traffic management systems at the Manila air control tower and other airports in the country.

The DOTC has been silent on the price of the consultancy contract signed by Mendoza with the Aviation Systems Consultants Co. Ltd. (ASCO), a Japanese consortium composed of Airways International Ltd., Azusa Co. Ltd., and Katahira and Engineers.

The DOTC, through (ATO) project manager Andrew Basallote, said that civil aviation safety was the paramount consideration in the hiring of an expert though expensive consultant for the installation of the satellite-based CNS/ATM system for the country’s airspace.

Basallote explained the complexity of the project requires the expertise of the consortium without compromising the safety of civil aviation in the country.

“The DOTC’s new Communications, Navigation, Surveillance/Air Traffic Management (CNS/ATM) systems development project is one such undertaking for which no armchair consultancy would do,” he said.

The DOTC said the CNS/ATM systems will enhance safety, reliability and efficiency of air traffic and airspace systems in the Philippines, in accordance with the requirement of the International Civil Aviation Organization (ICAO) for member states to transition to the satellite-based CNS/ATM system by 2010.

The DOTC announced the signing of a P900 million consultancy deal with the Japanese firm last November.

Mendoza signed the contract with Eiichi Chaki, president of ASCO last Nov. 27 in ceremonies held at the Multi-Purpose Hall in the DOTC central office at the Columbia Towers, Mandaluyong City.