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

Laguindingan Airport Upgrade Up For Bidding


Laguindingan Airport
Laguindingan Airport (Image Source: Vincent Tom Udasco)

MANILA, Philippines – The government is slated to bid out the operations and maintenance contract of Misamis Oriental’s Laguindingan Airport in December.

Upgrading the Laguindingan Airport, which would modernize the airport’s facilities based on international standards, includes the expansion of its cargo terminal building and runway; and a construction of a new passenger terminal building, said Transportation Secretary Joseph Emilio Abaya.

“It is meant to satisfy the projected number of passengers for the next 3 decades, as well as to maintain the airport’s facilities and services at international standards,” Abaya said in a statement on Tuesday, November 4.

The airport serves flights to Cagayan de Oro City, although it is located outside Misamis Oriental’s provincial center. It replaced the aging Lumbia Airport in 2013.

Abaya pegged the project cost at P14.6 million ($324,913.76*), with a concession period from 30 to 35 years.

The airport has been serving 1.6 million passengers annually since it opened. By 2017, the figure would rise to 2.58 million, Abaya said.

“The airport was meant to be completed way back in 2006, but was not fully executed until last year,” he said.

Laguindingan Airport sits between Iligan City and Cagayan de Oro City.

Awarding of the contract to the winning bidder is scheduled in the third quarter of 2015, said Abaya.

Night landing-capable

Meanwhile, the DOTC announced that the airport may soon begin night operations, as the Civil Aviation Authority of the Philippines (CAAP) looks into the airport’s night landing capacity until November 6. The development has elated commercial carriers.

“It’s a very positive development as this will allow us to mount more flights especially this coming Christmas season” Philippine Airlines (PAL) president Jaime Bautista told Rappler.

Non-primary airports across the country lack instrument landing system, which limits them to operate only from sunrise to sunset, prompting some flights to be cancelled.

Meanwhile, Cebu Pacific Vice President for Corporate Affairs Jorenz Tanada said they have not received an official status of Laguindingan’s night landing capability, but “we will look at all our options and secure all necessary approvals to add more flights to and from Laguindingan Airport.”

Commercial carriers PAL Express, Cebu Pacific, and Air Asia Zest operate at the main gateway for northern Mindanao. –Rappler.com

NAIA, Clark Among 8 Major PHL Airports To Be Privatized


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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

 

Tigerair Launches MNL-CGY-MNL Flights


Tiger

TIGERAIR Philippines, through its network Cebu Pacific Air, launched its Manila-Cagayan de Oro flights in Laguindingan Airport, Tuesday.

Tigerair Philippines’ chief legal officer and head of corporate affairs lawyer Leilani de Leon welcomed guests and expressed her gratitude on behalf of Tigerair. She also announced that soon, they will add Cebu-Cagayan de Oro flight.

The president of Hotel, Resorts and Restaurant Association of Cagayan de Oro Nelia Lee said with Tigerair’s launching, Laguindingan Airport now has 18 daily flights coming in and out of Misamis Oriental.

Laguindingan Airport Authority terminal manager Jose Budiongan hopes that with Tigerair’s flight, it does add to pursuing the Civil Aviation Authority of the Philippines (CAAP) vision: “The future is in the skies. Fly high, Laguindingan Airport.”

Misamis Oriental governor Bambi Emano also graced the event and talked on how Tigerair’s coming in becomes an advantage for Misamis Oriental since the province has been exerting so much effort to promote the province’s tourism campaign. He also offers assistance to support and help Tigerair in any way he can since a Tigerair and MisOr partnership will boost the province’s tourism campaign.

Tigerair also awarded a round trip ticket to the first passenger who checked in yesterday.

Atty. de Leon gave Mr. Kenneth Osip his reward near the end of the program.

The short launch ended with the ribbon cutting led by Emano and de Leon.
Tigerair Philippines currently holds a P1 seat sale on all its domestic destinations from July 15 to 17, 2014, or until seats last, for travel from January 1 to March 31, 2015.

Even without the promo, those who wish to travel to and from Cagayan de Oro before or after the first quarter of 2015 can book flights with Tigerair’s year-round fares starting at P1,518 only. 

Source: Myles Cantal Albasin, SunStar Cagayan De Oro

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

New Airport Proves To Be Bane in Region 10


Laguindingan
Laguindingan Airport: boon or bane?

MAMBAJAO, Camiguin Island—For most provinces, a new airport spells more flights and higher visitor arrivals that would boost the tourism industry in their respective areas.

But in the case of Region 10, or Northern Mindanao, the much-heralded new Laguindingan International Airport in Misamis Oriental may have cost it at least 7 percent in visitor arrivals in 2013.

This was the assessment of Catalino Chan III, regional director for Northern Mindanao of the Department of Tourism. In an interview over the weekend during Camiguin’s Panaad Festival 2014, he said “there was decrease by 7 percent in visitors last year due to the decrease in flights [at the Laguindingan Airport].”

“Partial data” from the region, which covers the provinces of Bukidnon, Camiguin, Lanao del Norte, Misamis Oriental and Misamis Occidental indicated an 11-percent drop in visitors in 2013 to 1.32 million, from 2012’s 1.48 million. Foreigners accounted for some 4.11 percent of total visitor arrivals in the region in 2012. Most visitors to Northern Mindanao attend conventions, seminars and conferences.

Unlike the old Lumbia airport in Cagayan de Oro, the new Laguindingan Airport has no night landing facilities like runway lights, navigational equipment and a control tower. According to the Civil Aviation Authority of the Philippines (Caap), daily flights to Laguindingan have dropped to 17 (Philippine Airlines and Cebu Pacific) compared to 28 to 32 daily flights at the old Lumbia airport, which was night-rated.

The good news, though, according to Chan, is that visitor arrivals in Camiguin —Region 10’s most popular tourism destination—are likely to rise by 10 percent to 15 percent in 2014, with new daily flights from Manila via Cebu.

During the Holy Week, Cebu Pacific had an almost full passenger load on its ATR 72-500, with foreign visitors —mostly Europeans, Americans and some South Koreans—accounting for nearly 10 percent of the passengers.

Camiguin is famous for its Lanzones Festival, which happens every October; the still active Mount Hibok-Hibok, which attracts mountaineers; a variety of hot and cold springs, Spanish-era heritage homes and church ruins, the Sunken Cemetery, the C-shaped White Island, and snorkeling/scuba diving off Mantigue Island.

In an interview with select reporters, Candice Borromeo-Dael, provincial tourism officer of Camiguin, said they are targetting some 500,000 visitors in 2014.

Last year Camiguin registered only 400,000 visitors due to weather disturbances that hit the province. Foreign tourists coming mostly from Europe accounted for some 10 percent of total visitor arrivals, she said.

Curiously, Dael said many of their foreign visitors don’t want to promote the province even to their friends. “When we ask them to tell their friends about Camiguin, they say they want the island to remain a secret [so it doesn’t become overrun with tourists].”

Camiguin has been compared to the Boracay, which was also first “discovered” by Europeans. Unrelenting construction of new resorts on Boracay and the swelling of tourists, especially during the summer and Christmas breaks, have sent foreign and domestic tourists scurrying to find alternative beach destinations in the country.

Many foreigners have already found a home in Camiguin and are operating restaurants, bed and breakfasts, resorts and dive tours.

In March 2012, the UK’s Essential Travel Magazine named Camiguin’s White Island as the “best for tanning,” while Yahoo! News PH named the same as No. 1 of its Top 7 Philippine beaches for 2013.

Prior to the daily flights by Cebu Pacific, the island was reached via Cagayan de Oro (flight from Manila is an hour and 20 minutes), a five-hour land trip from the Languindingan Airport to the Balingoan port (used to be 2.5-3 hours from Lumbia), and a one-hour ferry ride to Benoni Port in Camiguin.

Other tourism destinations in Northern Mindanao include: the first Christian settlement in Bayug, Lanao del Norte, as well as the Maria Cristina Falls; the pineapple plantations and the Monastery of the Transfiguration in Bukidnon; Lake Duminagat and the Immaculate Concepcion Cathedral  in Misamis Occidental; and dolphin- and whale-shark watching, as well as the Divine Mercy Shrine in Misamis Oriental.

 

Source: Ma. Stella F. Arnaldo / Special to the BusinessMirror

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)