Chelsea Logistics Holdings Corp. (CLC) has submitted an unsolicited public-private partnership (PPP) proposal for the bundled development, operation, and management of Davao and New Bohol (Panglao) international airports for P67 billion.
The proposal, submitted to the Department of Transportation (DOTr) on February 5, involves operating and maintaining all of the existing and project assets of the two regional airports, except those under the control of the Civil Aviation Authority of the Philippines.
Additionally, CLC proposes necessary development works to meet future passenger and aircraft movements during the concession period running 30 years.
“We will modernize both Davao and Panglao international airports into world-class airports without government subsidy by implementing the development in three phases with an estimated total project cost of P67 billion,” it said.
“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,” CLC president and chief executive officer Chryss Alfonsus Damuy said in a statement.
In DOTr’s recent acknowledgement letter it stated that the unsolicited proposal was being evaluated as required under Republic Act No. 7718 (Build-Operate-Transfer Law) and its implementing rules and regulations.
With airport traffic projected to grow to 8 million to 15 million passengers in Davao and 1.5 million to 2.1 million passengers in Panglao by 2050, CLC said it believes that bundling these two airports would create opportunities to improve domestic connectivity and international tourism.
The plan to reconfigure and expand passenger terminal buildings is also expected to provide a new level of convenience and comfort to passengers and airport users.
“If the government approves the CLC proposal in 2018, improvement of passenger experience and benefit to the community will start next year,” Damuy said.
Being Mindanao’s premier gateway, the Davao International Airport is targeted to accommodate up to 30 hourly aircraft movements with the proposed construction of a new full parallel taxiway providing improved airfield safety and efficiency.
Further, by the end of the concession period, Davao International Airport’s cargo terminal would have almost three times its current capacity so as to keep up with expected air freight demand, while the Panglao International Airport’s facility would be expanded by 25% more.
“We expect that 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,” Damuy stated.
“We ensure that every project we undertake is aligned with our goal to be the preferred end-to-end supply chain logistics service provider in the country, and which will as a result, generate more value for our stakeholders and improved outcomes for Filipinos,” he added.
Aside from CLC, other firms have submitted their own unsolicited proposals for airport development projects. Aboitiz InfraCapital, the infrastructure arm of the Aboitiz Group, has filed an unsolicited proposal to upgrade, expand, operate and maintain Iloilo International Airport, Bacolod-Silay Airport, Laguindingan Airport, and New Bohol International Airport in Panglao.
Further, several conglomerates and companies have also recently submitted unsolicited proposals to modernize and operate Ninoy Aquino International Airport, construct an airport in Sangley in Cavite, and build an airport complex in Bulacan.
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