Passenger and cargo shipping company Chelsea Logistics (CLC) has submitted a proposal to modernise two airports in the Philippines with an investment of PHP67bn ($1.29bn).

The company has submitted an unsolicited public-private partnership (PPP) proposal to the Department of Transportation (DOTr) for the combined development, operation, and management of Davao airport and New Bohol (Panglao) International.

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Requesting a concession period of 30 years from the Filipino government, CLC stated that it will operate and maintain all existing projects and assets of the two airports, leaving those that will continue under the control of the Civil Aviation Authority of the Philippines (CAAP).

“We will modernise both Davao and Panglao international airports into world-class airports without government subsidy.”

Chelsea Logistics president and CEO Chryss Alfonsus Damuy said: “We will modernise both Davao and Panglao international airports into world-class airports without government subsidy by implementing the development in three phases, with an estimated total project cost of PHP67bn.

“However, for the economic viability of the project, the succeeding works after the development of Phase One shall be subject to the traffic growth requirements and compliance with the minimum performance standards.”

CLC estimates that airport traffic will grow by between 8 and 15 million passengers in Davao, and between 1.5 and 2.1 million travellers in Panglao by 2050.

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Modernising these two airports is expected to improve domestic connectivity and increase international tourism.

Davao Airport is expected to accommodate up to 30 hourly aircraft movements with the construction of a new full parallel taxiway that will offer improved airfield safety.

The airport’s cargo terminal will be extended to roughly three times its current capacity to keep up with expected air freight demand.

Panglao International Airport’s facility will have expanded an extra 25% by the end of the concession period.