No More PPP for Regional Airports


DVO Airport

The Duterte administration has scrapped the public-private partnership (PPP) of five regional airports according to National Economic Development Authority (NEDA). Both the Department of Transportation and Civil Aviation Authority (CAAP) also confirmed the termination of the bidding process for the New Bohol (Panglao), Davao, Iloilo, Laguindingan and Bacolod airports.

“The government, through the implementing agencies, the DOTr and CAAP, decided that the projects would be implemented through other modes,” according to the official statement.

With the termination of the PPP process, NEDA Undersecretary for Investment Programming Rolando Tungpalan said the hard infrastructure would now be funded through general appropriations while other modes of financing and implementation would be considered for the operations and maintenance (O&M) component of the projects which will be decided on ‘later.’

Iloilo Airport

 

 

 

Gov’t Releases Development Plans For Six Airports


THE DEPARTMENT of Transportation and Communications (DoTC) has released development plans for the country’s six major airports in a bid to further unlock their potentials for tourism.

Worth an initial P26.1 billion, the plans involve six major airports and are also covered in public-private partnerships (PPP). These facilities are the Puerto Princesa International Airport, Iloilo International Airport, Bacolod-Silay International Airport, Davao International Airport, Laguindingan International Airport, and the New Bohol Airport.

These were revealed by Engineer Rafael S. Lavides, Division Chief of the Air Transport Planning Staff Department of the DoTC, during the hearing of the Congressional Oversight Committee on Tourism in the Senate on Tuesday.

An initial P5.8 billion have been earmarked for initial investments in the Puerto Princesa International airport for the construction of new facilities, which include the development of its 2,600m x 45m runway and the expansion of the passenger terminal building, both of which are slated for completion in 2017.

The phase 1 of the development of the Iloilo International Airport, considered as the 5th busiest airport, will have an investment of P4 billion. The project development includes the expansion of the 13,700 sq. m. passenger terminal building to as much as five times of its original size.

Image Source: Simon Peter Tan

The Bacolod-Silay International Airport is also set to receive P3.6 billion for the phase 1 of the development and expansion of its runway and passenger terminal building; the Davao International Airport, P5.8 billion; Laguindingan International airport, P2.2 billion; and the New Bohol (Panglao) Airport, P4.5 billion.

Davao International Airport

The agency is eyeing to submit these plans to the National Economic and Development Authority (NEDA) Investment Coordination Committee on the second quarter of this year, Mr. Lavides said.

For the Clark International Airport, Mr. Lavides said that the construction of a new terminal is under study and plans will be submitted to the NEDA ICC by the first quarter of this year.

Laguindingan Airport

Other key secondary airports, which include the Tuguegarao Airport, Roxas Airport, Iloilo International Airport, Bacolod International Airport, Surigao Airport, Butuan Airport, Ozamis Airport, Zamboanga International Airport, General Santos International Airport, and the Sanga-Sanga airport will also receive a total of P6 billion for their development.

Approximately P20 billion has also been earmarked for expansion and modernization projects for the Laoag International Airport, Naga Airport, Bicol International Airport, Tacloban Airport, Siargao Airport, Caticlan International Airport, Kalibo International Airport, Busuanga Airport and the San Vicente Airport.
Source: Alden M. Monzon, http://www.bworldonline.com

DOTC Rolls Out P116.2-B Bundled Contract For 6 Airports


MANILA, Philippines – The Department of Transportation and Communications (DOTC) started yesterday the search for a concessionaire to develop at the same time operate and maintain six provincial airports in a contract worth P116.2 billion.

In an invitation to prequalify and bid, the DOTC through the Civil Aviation Authority of the Philippines (CAAP) invited prospective bidders to finance, design, construct, operate, and maintain the Bacolod-Silay, Davao, Iloilo, Laguin-dingan, New Bohol (Panglao), and Puerto Princesa 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 are the Bacolod – Silay international airport worth P20.26 billion, the Laguindingan airport, P14.62 billion; Puerto Princesa airport, P5.81 billion; and New Bohol (Panglao) airport, P4.57 billion.

The DOTC said the 30-year concession contract would be awarded through a competitive bidding following the rules and procedures prescribed under the Build-Operate-Transfer (BOT) Law.

The DOTC is set to apply the two-stage/two-envelope system for soliciting bids under the BOT Law.

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 an 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.

The DOTC has tapped a loan from the Japan International Cooperation Agency (JICA) to put up the New Bohol airport in Panglao Island that would replace the Tagbilaran airport once completed in the middle of 2017.

Source: Lawrence Agcaoili, The Philippine Star

Airport PPP Projects To Be Auctioned Off


MANILA, Philippines–The government is looking at auctioning off several provincial airport public private partnership (PPP) deals later this year while authorizing the hiring of consultants to study the possibility of bidding out the country’s busiest airport, Ninoy Aquino International Airport in Manila.

PPP Center executive director Cosette Canilao told reporters that the provincial airport  deals are for Laguindingan, Panglao (Bohol), Puerto Princesa, Iloilo, Davao and Bacolod.

Puerto Princesa Airport
Puerto Princesa Airport

These would be a combination of operations and maintenance contracts with expansion components, depending on the need.

“We are looking at one bidding process but several packages,” Canilao said while adding they have yet to finalize how the airport projects would be bundled.

This was moving ahead of a the potential plan to auction out the operations of Naia, an aging gateway that handled about 32 million passengers last year. Naia has been facing congestion issues given its inability to keep up with rising demand for air travel.

The Department of Transportation and Communications is already reviewing a proposal to build a 2.3-kilometer parallel runway to complement the existing 3.4-km primary runway. This will allow Naia to accommodate more takeoff and landing events and ease air traffic congestion, which costs airlines an estimated P7 billion annually on top of delays for passengers. Any privatization of Naia’s operations is expected to draw significant private sector interest, which is why the government is exploring this option.

“The Naia O&M (operation and maintenance) and development plan is a different transaction,” Canilao said.

“DOTC has already asked PDMF support to hire consultants for that,” Canilao said, referring to the Project Development and Monitoring Facility.

PDMF is a revolving pool of funds from the Philippine and Australian governments to enhance investments in PPPs.

Canilao said the government is looking at auctioning off PPP deals recently approved by the National Economic and Development Authority, chaired by President Aquino. Among the more than $1 billion infrastructure deals that would be ready for bidding in the second half of 2014 include the Bulacan Bulk Water Supply Project (P24.4 billion), New Centennial Water Supply Source Project (P18.7 billion) and the Light Rail Transit Line 2 operations and maintenance contract.

Source: Miguel R. Camus, PDI

Longer Airport Runway Pushed


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Bacolod-Silay Airport

BACOLOD City Representative Evelio Leonardia (lone district) and Negros Occidental Occidental Representative Alfredo Benitez (third district), along with their colleagues in the House of Representatives, vowed to strongly endorse the proposed extension of the Bacolod-Silay Airport runway from two kilometers to 2.5 kilometers with an estimated cost of P100 million.

Both legislators joined the House Contingent of the Congressional Oversight Committee on Civil Aviation Authority of the Philippines (COCCAAP) and House committee on transportation chaired by Catanduanes Rep. Cesar Sarmiento during an ocular visit at the airport yesterday.

Also present were Manila Second District Rep. Carlo Lopez and Kabataan party-list Rep. Terry Ridon.

Leonardia is the vice chairman of the House committee on transportation.

During the inspection, they were briefed by airport officials on the concerns, needs and status of the Bacolod-Silay Airport being positioned to become an international airport.

Consultative meetings and ocular inspections of airports are being done nationwide in line with the goal of ensuring the retention of the Philippines’ recently regained Category 1 safety rating from the Federal Aviation Authority of the United States.

BCD1

“It’s good that we knew about the needs and status of the Bacolod-Silay Airport and we have to do something about it. I was told that Congressman Leonardia similarly undertook action to see to it that the airport runway is extended. This was validated by the presentation made by the airport authorities,” Sarmiento said.

Sarmiento was the Assistant Secretary of the Department of Transportation and Communication (DOTC) when the Bacolod-Silay Airport was constructed and inaugurated.

Airport authorities are in a better position to know what is best for the airport, he said, particularly also on the need to expand the passenger terminal building.

“Since the volume of traffic is increasing then we need to support their recommendation,” Sarmiento said.

For his part, Leonardia said: “We are happy to note that while I made a recommendation to the DOTC Secretary way back in July or August last year to have the runway extended and terminal expanded, the local CAAP people are also of the same position which is a factor in the ultimate decision of the DOTC.”

Meanwhile, Himelie Fernandez, chief of the Air Traffic Control, said the income and expenses of the Bacolod-Silay Airport for 2013 amounted to P200.320 million with expenditures amounting to P112.291 million.

They have collected P136.374 million and their receivables from several airlines amount to P37.642 million.

“This airport is gaining and we have an P88 million net income for the year 2013,” Fernandez said.

The Bacolod-Silay Airport can now accommodate flights for 24 hours unlike before when airlines and private plane owners have to pay P5,000 per hour if they land or take off beyond 9 p.m.

Benitez said the Department of Public Works and Highways has also started the concreting of the Bacolod Silay-Airport Access Road with a budget of more than P65 million.

The extension project would be until Barangay E. Lopez in Silay City and the extension up to Victorias City is under process.

 

Source: Carla N. Canet, Sun Star Bacolod

After Mactan-Cebu, Megawide Eyes 6 More Airport Projects


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The future of Mactan-Cebu International Airport

Cebu City , Philippines – Megawide Construction Corp., one of the most active local companies in the public-private partnership (PPP) scene, is joining more auctions for airport rehabilitation and operations.

The consortium of Megawide and Bangalore-based GMR Infrastructure Ltd. will continue their partnership that recently bagged the P17.5-billion Mactan-Cebu International Airport (MCIA) deal, executives said.

Megawide chief financial officer Oliver Tan said the company is planning to join the bidding for six more airport PPP projects this year.

“The Philippines is the fastest growing economy in this region. Tourism is a growing business and considering that, it generally means that airport development is good in the Philippines,” said Manish Khalghatgi, vice president for corporate communications of GMR.

Khalghatgi said Megawide-GMR tandem is ready for more airport projects particularly in Visayas and Mindanao.

The government plans to roll out more PPP projects this year including the P15.92-billion operation and maintenance (O&M) of the Laguindingan airport, the P2.34-billion enhanced O&M of the new Bohol airport. It also listed the O&M of the Puerto Princesa, Iloilo, Davao, and Bacolod airports as PPP projects.

The Megawide-GMR consortium last week received the formal award of the P17.5-billion MCIA project, the largest PPP offered to date.

Aside from airport projects, Megawide is also interested to be the contractor for the winning bidder of the P65-billion Light Rail Transit Line 1 elevated railway extension to Cavite province, Tan said. Megawide is also preparing to join the bidding for the P35.6-billion Cavite-Laguna Expressway project.

So far, Megawide has bagged four PPP projects: the P5.7-billion new Philippine Orthopedic Center, the MCIA, the PPP School Infrastructure Project Phase One (PSIP-1) and PSIP-2.

Despite numerous projects on its plate, Megawide is still prepared to pursue more infrastructure ventures.

“The airport is a collaboration with GRM and Megawide. We will have an entirely separate organizational structure,” Tan said.

Megawide also has manageable debt levels as available cash is larger than existing debts, Tan said.

For its part, GMR has the skill and the expertise for end-to-end airport projects that deal with financing, rehabilitation and operation, Khalghatgi said.

Megawide is one of the top contractors in the Philippines while GMR is the world’s third largest private airport developer in terms of passenger traffic.

Source: Neil Jerome C. Morales (The Philippine Star)