DOTr clears Chelsea’s Davao airport proposal

MANILA, Philippines — The group of Davao-based businessman Dennis Uy has moved closer from potentially taking over the Davao International Airport after its unsolicited proposal hurdled the latest round of review from the Department of Transportation (DOTr).

Transportation Undersecretary for planning Ruben Reinoso told The STAR that Chelsea Logistics Holdings Corp.’s unsolicited offer for the development, operation, and management of the Davao International Airport has been endorsed to the National Economic and Development Authority (NEDA)’s Investment Coordination Committee (ICC) on Monday.

The DOTr’s endorsement means that Chelsea’s revised proposal was found compliant with the government’s requirement to pattern its concession terms with that of the Clark International Airport.

The proposal is the second among the unsolicited regional airport offers which were returned by the government to their respective proponents last June to have been found compliant with the so-called Clark template and thus endorsed to the ICC.

Aboitiz InfraCapital Inc.’s unsolicited proposal to upgrade, operate and maintain the Bohol-Panglao International Airport was also endorsed to the ICC last month by the DOTr, which The STAR reported earlier.

Project cost for Chelsea’s Davao International Airport offer was earlier set at P49-billion, with a proposed concession period of 30 years.

Chelsea has been awarded in October last year the original proponent status (OPS) for the unsolicited proposal, giving it the upper hand once Swiss challenge is undertaken for the project.

For it to move to the Swiss challenge process, however, it still has to secure approval from the ICC and the NEDA board.

Aside from the Davao International airport, Uy’s Udenna Infrastructure Corp. has also submitted unsolicited proposals for the expansion, augmentation, operations, and maintenance of Bacolod-Silay Airport and the Busuanga Airport in Palawan.

Both projects have not been granted OPS at the moment. They were also returned by the DOTr to the proponent with the direction to revise, pattern and comply with the Clark concession agreement.