DOTC splits P128-B airport projects

MANILA, Philippines - The Department of Transportation and Communications (DOTC) has divided the bidding for the operation and maintenance (O&M) of six provincial airports worth P128 billion into two packages.

In a presentation during the Philippine Infrastructure Seminar, the DOTC said Package A consists of the Puerto Princesa, Iloilo, and Bacolod-Silay airports worth P60.93 billion, while Package B comprises of the Davao, Laguindingan, and New Bohol (Panglao) airports worth P66.9 billion.

The DOTC said the agency has decided to divide the public private partnership (PPP) projects into two packages with three airports each to help ensure that all airports are awarded to competent players.

The procurement strategy, the agency added, would help ensure efficient tender of all airports.

The biggest project is the P40.57-billion contract to improve the services and enhance the airside and landside facilities at the Davao international airport followed by the P30.4-billion contract for the Iloilo international airport.

Other projects include the Bacolod – Silay international airport with P20.26 billion, the Laguindingan airport with P14.62 billion, New Bohol (Panglao) airport with P11.71 billion, and Puerto Princesa airport with P10.27 billion.

The airport projects would entail initial investments of up to P26.14 billion with the biggest amount going to Davao with P5.89 billion followed by Puerto Princesa with P5.81 billion, New Bohol with P4.57 billion, Iloilo with P4.01 billion, and Laguindingan with P2.26 billion.

 The DOTC said the 30-year concession contract would 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 through the Civil Aviation Authority of the Philippines (CAAP) would enter into concession agreements for the expansion, operations and maintenance of the existing airports to private operators.

The private sector concessionaire for the Bacolod-Silay, Davao, Iloilo, and Laguindingan airports would take over the operations and maintenance; undertake immediate expansion of the passenger terminal buildings, apron, other airside and landside facilities; and any capacity augmentation to cater to future demand throughout the contractual term.

Likewise, the private proponent would also take over the operations and maintenance of the New Bohol (Panglao) and Puerto Princesa airports.

The DOTC pointed out that the traffic at the six provincial airports has either exceeded or is nearing their design capacity levels making the fast and proactive development crucial.

Traffic at the Davao international airport has been growing at an annual rate of 10.56 percent over the past five years and handled 2.79 million passengers last year making it the third busiest airport in the Philippines after the Ninoy Aquino International Airport (NAIA) as well as the Mactan – Cebu international airport.

Volume of passenger at the Iloilo international airport has been growing at average rate of 11 percent over the past five years to hit 1.82 million last year making it the fifth busiest airport in the country.

The Laguindingan airport is the sixth busiest airport in the country as volume increased averaged 15.1 percent to hit 1.78 million last year followed by the Puerto Princesa with an average increase of 22.8 percent to hit 1.33 million, and the Bacolod-Silay international airport with an average growth of 9.6 percent to reach 1.32 million last year.