DOTC divides bundled airports project

MANILA, Philippines – The Department of Transportation and Communications (DOTC) will divide the P128-billion ($2.90 billion) bundled airports project into two packages, saying this would help ensure that all airports inclusive in the public-private partnership (PPP) package are awarded to competent bidders.

Package A of the bundled airports project include the operation and maintenance (O&M) of the Puerto Princesa, Iloilo, and Bacolod-Silay airports worth P60.93 billion ($1.38 billion), the DOTC said in a presentation during the Philippine Infrastructure Seminar on Monday, February 23.

Package B comprises the Davao, Laguindingan, and New Bohol (Panglao) airports worth P66.9 billion ($1.52 billion). Procurement strategy The procurement strategy would help ensure efficient tender of all
airports, DOTC said.

The biggest project is the P40.57-billion ($918.43 million) contract to improve the services and enhance the airside and landside facilities at the Davao international airport. The second biggest is the P30.4-billion ($688.18-million) contract for the Iloilo international airport.

Other projects include the Bacolod-Silay international airport worth P20.26 billion ($459.19 million); the Laguindingan airport, P14.62 billion ($331.37 million); New Bohol (Panglao) airport, P11.71 billion ($265.41 million); and Puerto Princesa airport worth P10.27 billion ($232.78 million).

The airport projects entail initial investments of up to P26.14 billion ($592.51 million), with the biggest amount going to Davao at P5.89 billion ($133.54 million), followed by Puerto Princesa, P5.81 billion ($131.73 million); New Bohol, P4.57 billion ($103.62 million); Iloilo, P4.01 billion ($90.92 million); and Laguindingan with P2.26 billion ($51.24 million).

The 30-year concession contract will be awarded through a competitive bidding following the rules and procedures prescribed under Republic Act 6957, as amended by RA 7718, otherwise known as the
Build-Operate-Transfer (BOT) Law.

The DOTC agency, through the Civil Aviation Authority of the Philippines (CAAP), will enter into concession agreements for the expansion, operations, and maintenance of the existing airports with private operators.

The private sector concessionaire for the Bacolod-Silay, Davao, Iloilo, and Laguindingan airports will undertake not just O&M but also the immediate expansion of the passenger terminal buildings, apron, other airside and landside facilities, and any capacity augmentation to cater to future demand throughout the contract’s term.

The private proponent will also take over the O&M of the New Bohol (Panglao) and Puerto Princesa airports.

Traffic at the 6 provincial airports has either exceeded or is nearing their design capacity levels, making the fast and proactive development crucial, DOTC said. – Rappler.com

 US$1 = P44.11