DOTr grants original proponent status to 2 firms for Davao, Kalibo airports upgrade

MANILA, Philippines – The Department of Transportation (DOTr) has granted original proponent status (OPS) to two firms that submitted unsolicited proposals for the upgrade of the Davao and Kalibo airports.

The DOTr granted the OPS to Dennis Uy-led Chelsea Logistics Holdings Corporation (CLC) for its P49-billion unsolicited proposal to manage, operate, and develop Davao International Airport.

Mega7 Construction Corporation also bagged the OPS for its P3.8-billion unsolicited proposal for the operation, maintenance, and upgrade of facilities and systems at the Kalibo International Airport. 

On Friday, October 19, the Civil Aviation Authority of the Philippines (CAAP) Board  obtained the needed number of signatures to grant the two firms OPS.

Both unsolicited proposals will also include the expansion of passenger terminal buildings. The concession period will be for a period of 30 years. 

Under the country's build-operate-transfer (BOT) and procurement laws, the government deals with unsolicited proposals through a Swiss challenge. This is when the government invites private groups to make competing offers, while giving the original proponent the right to match them.

Now that the OPS for the airports had been awarded, the CAAP board will seek the approval of the National Economic and Development Authority (NEDA) Investment Coordination Committee (ICC).

If the NEDA ICC approves the project, it would go to the NEDA Board, chaired by President Rodrigo Duterte. After the NEDA Board's approval, a Swiss challenge can be conducted.

CLC submitted its proposal on May 28, and Mega7 on August 6. The DOTr earlier said it had no objections to the unsolicited proposals, both subject to legal, technical, and financial conditions. –

Aika Rey

Aika Rey covers the Philippine Senate for Rappler. Before writing about politicians, she covered budget, labor, and transportation issues.