Chelsea Logistics submits P67-B bid to develop Davao, Bohol airports

MANILA, Philippines— Dennis Uy-led Chelsea Logistics Holdings Corporation (CLC) has thrown its hat into the ring to upgrade and manage two major regional airports.

CLC announced that it submitted an unsolicited Public-Private Partnership (PPP) proposal to the Department of Transportation (DOTr)  for the bundled development, operation, and management of Davao and New Bohol (Panglao) International airports for a concession period of 30 years in a disclosure to the stock exchange on Friday, March 9.

CLC said that it proposed to operate and maintain all existing and project assets of the two airports, with the exception of those that will remain within the control of the Civil Aviation Authority of the Philippines (CAAP). It said it will do this while undertaking the necessary work to meet future passenger and aircraft movements.

“We will modernize both Davao and Panglao international airports into world-class airports without government subsidy by implementing the development in 3 phases with an estimated total project cost of P67 billion,” CLC president and CEO Chryss Alfonsus Damuy said in a statement.

“However, for economical viability of the project, the succeeding works after the development of Phase 1 shall be subject to the traffic growth requirements and compliance with the minimum performance standards,” he added.

CLC said that the DOTr is evaluating the proposal, which was submitted on February 5. If approved the project would begin next year.

Expansion plans

The CLC projection is for airport traffic to grow to approximately 8 million to 15 million passengers in Davao and 1.5 million to 2.1 million passengers in Panglao by 2050.

“Davao International Airport is targeted to be able to accommodate up to 30 hourly aircraft movements with the construction of a new full parallel taxiway providing improved airfield safety and efficiency," CLC said.

"By the end of the concession period, Davao International Airport’s cargo terminal will be almost 3 times its current capacity to keep up with expected air freight demand, while Panglao International Airport’s facility will have expanded by 25% more," it added.

Damuy said the company expects "the enhanced air cargo channels of these airports will translate to a considerable increase in the cargo movements in the region, consequently, benefitting the logistics business of CLC."

The two airports are among the 5 regional airports whose modernization and operation were originally slated to be bundled together and bidded out as a PPP project of the Aquino administration.

The Duterte administration eventually decided to develop the airports using government funds instead, and canceled the planned PPP auction for them.

Last week, Aboitiz Equity Ventures (AEV) submitted its own P148-billion unsolicited bid to modernize 4 regional airports.

AEV’s bid includes the Bohol airport, but  not the Davao International Airport. – Rappler.com