US firm wins bid for new Clark airport

CLARK FREEPORT, Pampanga – A US company lorded it over the bidding Monday for the construction of the P6.5-billion state-of-the-art passenger terminal for the Diosdado Macapagal International Airport here, elbowing out two other bidders which were disqualified.

The Chicago-based Admiral Energy ECC (Admiral Energy) offered P12.4 billion for the construction of the terminal, way above the minimum P6.5 billion specified in the terms of reference issued by the Clark International Airport Corp. for the bidding.

CIAC authorities, however, have not officially declared Admiral Energy as the winner in the bidding until they have finished with their “post qualification evaluation.”

“This is a very positive development again for DMIA and we can only move forward from here, the company (Admiral Energy) passed the three requirements and even exceeded its minimum investment,” CIAC president Victor Jose Luciano said.

“We can say that we will have a terminal by the first quarter of 2010,” Luciano said.

Two other bidders – the Philippine Regional Investment Development Corp. and the Synergy Resources – were disqualified after the documents they submitted in envelopes lacked some “eligibility requirements.” Initially, 11 bidders expressed interest in the project but only three showed up during Monday’s bidding.

With the two companies out, the bidding procedures commenced with only Admiral Energy as the lone bidder whose envelopes containing its technical and financial proposals were opened for consideration by CIAC’s joint venture special committee headed by CIAC executive vice president Alex Cauguiran.

Apart from Admiral Energy’s P12.6 billion offer for the construction of a modern passenger terminal, it also proposed an “upfront fee” of P108 million, way above the minimum P100 million requirement to be paid to the CIAC.

Should Admiral Energy be proclaimed as bid winner, it will be CIAC’s partner in a joint venture company for 30 years, renewable for another 10 years.

The TOR for the bidding states that Admiral Energy as private sector partner of CIAC will own 70 percent of shares, the remaining 30 percent to belong to CIAC.

The TOR said that the responsibilities of the PSP should include the design of the passenger terminal building with a minimum capacity for seven million passengers annually, the use of a “green building system and technology,” use of latest and state-of-the-art technologies in security and auxiliary equipment, expansion of the airport apron.

It also said that constructions “must accommodate at least International Civil Aviation Organization (ICAO) code E aircraft with apron lighting system, compliance at all times with national building and construction rules and regulations such as National Building Code and the Accessibility Law.”

The TOR also cited compliance not only with ICAO, but also with the US Federal Aviation Administration standards.

The PSP’s investments would also cover expenses for safety and security needs, additional two lane service road network approximately four kms., landside parking for at least 1,000 light vehicles, provisions for ecumenical prayer room, airport plaza for commercial establishments, retail shops and offices, transport plaza for buses and taxis, environmental impact study, provisions for government offices, holding room for guests.

Further, the equity contribution of CIAC in the joint venture would not be in cash, but in terms of being the owner of the assets and properties at the DMIA and the “value of the right to operate the DMIA passenger Terminal 2 and ancillary facilities for the duration of the agreement.”

“The CIAC shall be represented in the board of directors of the JV Co. in lieu of the veto power or superior rights of the CIAC, critical positions in the joint venture company such as the board of audit committee chairmanship, corporate secretary, internal audit, and comptroller shall come from the CIAC,” the TOR also said.

Sources of revenues for the joint venture company include check-in counter fees, passenger terminal fees, aircraft parking fees, aircraft tacking fees, lease and rental charges, concession privilege fees for passenger services, food services, transport utility concessions, among others.

“CIAC shall be entitled to a minimum guaranteed annual payment and terminal fee share,” the TOR also said.