Transport Department Offers ‘Bundled’ Airport O&M Deals This Month

Iloilo International Airport

THE TRANSPORTATION department said it will offer six airport concession contracts in bundled form under the public-private partnership (PPP) program, with bid invitations expected within the month, though the exact combination of airports to be included in the two potential bundles will be determined after consultations.

On the sidelines of a ceremony in Calamba, Laguna marking the launch of train service to the town, Transportation spokesperson Michael Arthur C. Sagcal said the department will publish the invitation to bid for the bundled operations and management (O&M) contracts of six airports: Iloilo, Bacolod, Davao, Puerto Princesa, Laguindingan in Misamis Oriental, and Bohol.

“We will publish an invitation to bid for the bundling (of airports) within December,” Mr. Sagcal said.

The National Economic and Development Authority (NEDA) Board has authorized the rollout of the airport O&M contracts in the following amounts: P30.40 billion for Iloilo Airport; P40.57 billion for Davao Airport; P20.26 billion for Bacolod Airport; P5.23 billion for Puerto Princesa Airport; and P15.92 billion for Laguindingan Airport. In the case of the New Bohol (Panglao) Airport, the contract is a so-called “Enhanced O&M” worth P2.34 billion.

“Along the way, there will be market sounding and consultations, as before the bidding itself there will be a period wherein we hear prospective bidders’ comments on what makes the most sense in the bundling of the airports,” Mr. Sagcal said.

He added that “right now, what’s concrete is that where we’re starting from is possibly two western airports bundled together and three eastern airports.”

Other than the bundling of the airports, the Transportation department is also targeting a rollout of the first seaport PPP deal this month.

Department of Transportation and Communications Secretary Joseph Emilio A. Abaya told reporters last week that his department is seeking to publish an invitation to bid for the P18.99-billion Davao Sasa Port Modernization project.

“Davao Port is already approved, so we can publish an invitation to bid early next month. It is in our interest to roll it out before the year ends,” Mr. Abaya explained.

The NEDA Board on Oct. 17 approved the rollout of Davao Sasa Port Modernization project.

The winning bidder will be in charge of modernizing the port.

According to the PPP Center Web site, the Sasa project involves modernizing the port’s existing infrastructure and construction of new facilities like an apron, linear quay, container yards, warehouses, as well as expansion of its backup area and the installation of ship-to-shore cranes and rubber-tire gantries. The project will have a 35- to 40-year term.

Eight PPP projects have been awarded so far by the Aquino government since the late-2010 launch of this flagship infrastructure program: the P64.9-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension; the P1.72-billion Automatic Fare Collection System; the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; the P2.01-billion Daang Hari-South Luzon Expressway Link Road; the P15.52-billion Ninoy Aquino International Airport Expressway; the P16.28-billion first phase of the PPP for School Infrastructure Project (PSIP); the PSIP’s P3.86-billion second phase; and the P5.69-billion Philippine Orthopedic Center modernization.

Source: Chrisee Jalyssa V. Dela Paz, BusinessWorld Online

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