DOTC likely to bid out P10.3-B Puerto Princesa airport separately

MANILA, Philippines - The Department of Transportation and Communications (DOTC) is considering excluding the Puerto Princesa airport from the list of six provincial airport projects worth P128 billion that is being offered to investors under the public private partnership (PPP) scheme.

A source said the P10.3-billion Puerto Princesa airport would likely be excluded from the list as it is feasible to bid the operation and maintenance (O&M) separately.

“Puerto Princesa is likely to be temporarily excluded from the bundled project since it turns out that it may be feasible to bid out its O&M separately,” the source said.

Instead, the source pointed out that the Puerto Princesa airport project could be offered to private investors together with the airports in Coron and Busuanga as well as the new airport in San Vicente under a comprehensive airport development plan for the rapidly growing tourism zone of Palawan.

The DOTC and the Civil Aviation Authority of the Philippines (CAAP) have decided to split the bidding for the O&M of the six provincial airports with three airports each to help ensure that all airports are awarded to competent players and ensure efficient tender of all airports.

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 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 RA 6957 as amended by RA 7718 otherwise known as the Build-Operate-Transfer (BOT) Law.

The DOTC through 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.