A New Puerto Princesa Airport in 2017


A world-class international airport at Puerto Princesa, Palawan, is set to open in early 2017 as the Department of Transportation and Communications (DOTC) on Tuesday said that the airport expansion project was finally awarded to a Korean group.

DOTC said in a statement that the $82.9-million design-and-build contract was awarded to Kumho Industrial Co. Ltd.-GS Engineering and Construction joint venture (Kumho-GS), which is set to start work on a new passenger and cargo building, apron, taxiways and navigation facilities by the end of this year.

“Kumho-GS will have around thirty months to complete the project, which means that the DOTC expects the modern airport to be fully operational by the first quarter of 2017,” DOTC said in the statement. Upon completion, the airport will have an annual capacity of about 2 million passengers.

In 2013, it counted 1.34 million passengers, or way beyond the passenger terminal building’s current estimated capacity of only 350,000 passengers an annum, the statement showed.

The project is largely funded through a Korean Export Import Bank (KEXIM) loan amounting to $71.6 million. The loan is payable in 40 years, inclusive of a 10-and-a-half-year grace period, at an interest rate of 0.1 percent a year. Bidding for the project was limited to South Korean firms, the statement showed.

“The ecotourism showcase that is Puerto Princesa, as well as the rest of Palawan, will soon have a modern, world-class airport, which we can be as proud of as the destination itself. With beaches and other natural wonders attracting throngs of visitors from all over the globe, it will finally have a gateway that is befitting of its stature,” Transportation Secretary Joseph Abaya said in a statement.

“Apart from boosting our tourism sector, this project will also generate jobs, particularly in the infrastructure sector. Overall, the estimate is up to 1,400 total new jobs during construction alone,” Abaya added.

In compliance with its engineering, procurement and construction contract, Kumho-GS will begin with the design component by the third quarter of this year. While the joint venture is preparing the airport’s detailed engineering design, it will also begin mobilizing its equipment and securing various project permits.

As a tied official development   assistance (ODA) loan, the bidding process was governed by the Guidelines for Procurement of Korea’s Economic Development Cooperation Fund (EDCF) and decisions were concurred with by KEXIM.

Earlier this year, the DOTC awarded the contract for another major international airport, the Mactan-Cebu International Airport, under the Aquino administration’s Public-Private Partnership (PPP) program. “It is also expected to boost tourism and economic activity, not only in the Visayas region, but for the country as a whole,” the transportation department said in the statement.

Source: Miguel R. Camus, PDI

Korean Firms Interested in PHP. 3.3B Puerto Princesa Airport Expansion

Source: Lawrence Agcaoili (The Philippine Star)


MANILA, Philippines – Industrial giants Hanjin and Kumho may join the bidding for the proposed P3.3 billion expansion of the Puerto Princesa international airport, the Department of Transportation and Communications (DOTC) said.

DOTC Undersecretary Jose Perpetuo Lotilla issued Special Bid Bulletin No. 01–2013 containing the agency’s reply on the written queries made by Hanjin Heavy Industries Construction Co. Ltd. and Kumho Industrial Corp.

The Korean companies sought clarification on the terms of bidding of the $79.41 million design-build contract for the expansion of the Puerto Princesa airport that serves as the gateway to Palawan where the Underground River is located.

The DOTC issued an invitation to bid last Aug. 17, urging Korean companies to join the bidding for the project.

The DOTC said interested bidders have until Oct. 15 to submit their bids.

The Puerto Princesa airport development Project aims to improve the existing airport facilities by expanding its present capacity to meet the projected increase in air passenger and cargo demand.

The project involves the rehabilitation or improvement of the existing to meet the standards of the International Civil Aviation Organization (ICAO) through the construction of new landside facilities in the northwestern side of the existing runway such as passenger terminal building, control tower, administration building, cargo terminal building.

The project also involves the construction of a rescue and fire fighting building as well as a new apron and connecting taxiways, and upgrading of the existing 2.6 kilometer runway and its strip, and the provision of new navigational and traffic control equipment.

The Puerto Princesa Underground River was named one of the New Seven Wonders of the World and is expected to generate 1.2 million tourists by 2016 and two million tourists by 2025.

Likewise, the airport is seen to revitalize the transport and trade linkages under the Brunei Darussalam, Indonesia, Malaysia and the Philippines-East ASEAN Growth Area (BIMP EAGA).

The Philippine government through the Department of Finance (DOF) received a loan worth $71.61 million from the Economic Development Cooperation Fund of the Republic of Korea coursed through the Export-Import Bank of Korea.