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

 

 

 

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3 PH Airports in Asia’s Top 30 List


Asia’s Top 30 Airports according to http://sleepinginairports.net/

  1. Singapore Changi International Airport, Singapore (SIN)
  2. Seoul Incheon International Airport, South Korea (ICN)
  3. Tokyo Haneda International Airport, Japan (HND)
  4. Taipei Taoyuan International Airport, Taiwan (TPE)
  5. Hong Kong International Airport, Hong Kong (HKG)
  6. Kuala Lumpur International Airport, Malaysia (KUL)
  7. Osaka Kansai International Airport, Japan (KIX)
  8. New Delhi Indira Gandhi International Airport, India (DEL)
  9. Hyderabad Rajiv Gandhi International Airport, India (HYD)
  10. Mumbai Chhatrapati Shivaji International Airport, India (BOM)
  11. Bangkok Suvarnabhumi Airport, Bangkok (BKK)
  12. Tokyo Narita International Airport, Japan (NRT)
  13. Koh Samui Airport, Thailand (USM)
  14. Trivandrum International Airport, India (TRV)
  15. Cochin International Airport, India (COK)
  16. Lahore Allama Iqbal International Airport, Pakistan (LHE)
  17. Bangalore Bengaluru International Airport, India (BLR)
  18. Mactan–Cebu International Airport, Philippines (CEB)
  19. Kolkata Netaji Subhas Chandra Bose International Airport, India (CCU)
  20. Karachi Jinnah International Airport, Pakistan (KHI)
  21. Iloilo International Airport, Philippines (ILO)
  22. Kualanamu International Airport, Indonesia (KNO)
  23. Da Nang International Airport, Vietnam (DAD)
  24. Clark International Airport, Philippines (CRK)
  25. Baku Heydar Aliyev International Airport, Azerbaijan (GYD)
  26. Surabaya Juanda International Airport, Indonesia (SUB)
  27. Penang International Airport, Malaysia (PEN)
  28. Hanoi Noi Bai International Airport, Vietnam (HAN)
  29. Beijing Capital International Airport, China (PEK)
  30. Kota Kinabalu International Airport, Malaysia (BKI)

Philippine Airports Ranking

Mactan-Cebu International Airport (MCIA) landed in 18th place; Iloilo Airport ranked 21st; and CRK snagged the 24th place.

#18) Mactan–Cebu International Airport, Philippines (CEB)

Concept design for the new Mactan–Cebu International Airport
winairtravel.wordpress.com

Then known as the Mactan Air Base, the Mactan–Cebu International Airport in Lapu-Lapu Cityin Mactan Island was built in 1956 by the United States as an emergency runway for Air Command bombers. Now, it is second to Manila’s NAIA in terms of being busy airport in the Philippines. It houses both domestic and international operations and has an annual capacity of 4.5 million passengers.

By 2018, the country’s second biggest gateway is expected to have a new world-class passenger terminal building and become the first-ever resort airport in the Philippines.

#21) Iloilo International Airport, Philippines (ILO)

Image Source: ffemagazine.com
Iloilo International Airport ​(Photo from Wikimedia Commons)

The fourth busiest airport in the Philippines can be found in the municipality of Santa Barbara in Iloilo. Started its operation in 2007, it was the first airport in the island of Panay to be built to international standards.

#24) Clark International Airport, Philippines (CRK)

Image Source: http://www.bworldonline.com
Clark International Airport ​(Photo from Wikimedia Commons)

Serving the vicinity of central and northern Luzon, Clark International Airport is located in Clark Freeport Zone between the cities of Angeles and Mabalacat in the province of Pampanga. It houses flight destinations to Kuala Lumpur, Seoul, Hong Kong, Macau, Singapore, Busan, and Doha. Its only domestic flight is to Cebu.

Iloilo In Talks For Air Service To Incheon & Xiamen


ILOILO CITY — The Iloilo City government is in talks with carrier AirAsia Philippines over the possibility of offering flights to the South Korean gateway of Incheon and Xiamen in China, the Tourism department said.

The push for more connectivity comes as the city hosts meetings of the Asia-Pacific Economic Cooperation (APEC) this year, raising the region’s profile among international tourists, the Department of Tourism in Region 6 (DoT-6) said

“With Iloilo’s hosting of the APEC meetings this July, September and October, we do hope that more visitors will be coming in from the 21-member economies of APEC that will impact our number of flights and hotel accommodation,” said lawyer Helen J. Catalbas, DoT-6 director.

Ms. Catalbas said Iloilo City Mayor Jed Patrick E. Mabilog is currently leading talks with AirAsia Philippines, Inc. with the aim of launching services next year.

South Korea and China are both APEC members, along with Australia, Brunei Darussalam, Canada, Chile, Chinese Taipei, Hong Kong (China), Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Thailand, the United States,and Vietnam.

For domestic flights, Ms. Catalbas said she has participated in discussions for the introduction of flights between Iloilo and Cotabato.

“For Mindanao, our flights for Davao, General Santos and Cagayan de Oro are going strong. We are looking at adding Cotabato. What is important is we can sustain the flights,” she said.

The airport’s current local routes include Manila, Cebu, Tacloban, Puerto Princesa, General Santos, Davao and Cagayan de Oro.

The Iloilo International Airport, located in the town of Cabatuan, will be bid out for upgrade works under the public-private partnership (PPP) program. The contract cost is P30.4 billion covering expansion, operation and maintenance over a 30-year period.

It is part of the PPP airport Bundle 1 that includes the Bacolod-Silay Airport with an indicative cost of P20.26 billion.

Prospective bidders, based on the PPP Center Web site, include GMR Infrastructure Ltd.-Megawide Construction Corp., the Metro Pacific Investments Corp.-JG Summit Holdings, Inc. consortium, Aboitiz Equity Ventures, San Miguel Corp., Philippine Skylanders, Inc., and Union Equities, Inc.

The submission of qualification documents has been moved to Aug. 10 from July 27.

Source: Louine Hope Conserva, http://www.bworldonline.com

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

NAIA, Clark Among 8 Major PHL Airports To Be Privatized


cropped-dvo.jpg

The government is set to bid out the operations and maintenance of eight major Philippine airports, including Ninoy Aquino International Airport (NAIA) and Clark International Airport, a Cabinet official revealed on Tuesday.

During the Philippine Economic Briefing in Pasay City, Transportation Secretary Joseph Emilio Abaya disclosed that the government will bid out the operations and maintenance component of the airports before President Benigno Aquino III’s term ends in 2016.
Aside from NAIA and Clark, the airports that will be up for privatization are:
  • Laguindingan Airport
  • Panglao Airport
  • Puerto Princesa Airport
  • Davao Airport
  • Iloilo Airport
  • Bacolod Airport

The National Economic and Development Authority (NEDA) Board has given the green light for the Laguindingan and Panglao, while feasibility studies are in the process for NAIA and Clark.

“In the next NEDA Board meeting, the four other [airports] are due for approval. We see no problem with that,” Abaya told reporters.
The operations and maintenance will be bid out separately and not bundled, he said.
Source: VS, GMA News

 

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

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)

JG Summit Eyes More Airport Projects


Source: , Philippine Daily Inquirer

lloilo   BCD

 

Conglomerate JG Summit Holdings Inc. is keeping an eye on airport projects that the government would auction off other than the P17.5- billion Mactan-Cebu International Airport, which the Gokongweis are bidding for together with Metro Pacific Investments Corp.

JG Summit president Lance Gokongwei said last week that the company would consider airport deals in areas like Iloilo and Bacolod, which the Department of Transportation and Communications (DOTC) might bid out under the public private partnership (PPP) framework.

The DOTC in June said it might bundle three airports—Davao, Iloilo, and Bacolod—under a single PPP. This, according to the DOTC, would give the deal more scale and draw larger international operators and local partners.

“We will have to look at the terms of reference. I think that after Cebu, they (DOTC) are looking at Bacolod and Iloilo (and Davao). They might bundle it so it’s the same size as Cebu,” Gokongwei said.

It was not clear whether JG Summit would pursue future airport ventures alone or in partnership with Metro Pacific.

The two groups formed early this year MPIC-JGS Airport Consortium Inc., which would bid for the contract to rehabilitate, expand and operate Mactan-Cebu International Airport.

MPIC-JGS Airport Consortium was among the seven groups pre-qualified to bid for the airport deal, the first to be auctioned off by the DOTC. The others include the SM group, Ayala-Aboitiz partnership and San Miguel Corp as well as foreign partners such as Singapore’s Changi and Incheon of South Korea.

The PPP Center, which originally planned to bid out Cebu-Mactan on Aug. 28 but pushed back the schedule to refine the concession agreement, said the auction would push through by the end of next month.

Taken together, the air gateways in Davao, Bacolod and  Iloilo handled about 5.5 million passengers in 2011, government statistics showed. This is comparable to the 6 million passengers that Mactan-Cebu Airport handled during that period.

“You have to package it. So if we bid out Bacolod, Iloilo and Davao, the winner will operate all three,” Transportation Secretary Joseph Abaya said in a previous interview.