Philippines approves proposals to develop Davao and Kalibo airports

25 October 2018 (Last Updated October 25th, 2018 09:43)

The Philippines' Department of Transportation has granted original proponent status (OPS) to two firms through the Civil Aviation Authority of the Philippines (CAAP) to upgrade Davao and Kalibo airports.

Philippines approves proposals to develop Davao and Kalibo airports
Philippines grants OPS to Chelsea and Mega 7 airports development. Credit: valdosilasol.

The Philippines’ Department of Transportation (DOTr) has granted original proponent status (OPS) to two firms through the Civil Aviation Authority of the Philippines (CAAP) to upgrade Davao and Kalibo airports.

Chelsea Logistics has received OPS for its PHP49bn ($911.76m) unsolicited proposal to manage, operate, and develop Davao International Airport.

DOTr granted OPS to Mega 7 Construction for its PHP3.8bn ($70.71m) plan for the Kalibo International Airport.

These unsolicited proposals will now have to undergo Swiss challenge, which means other groups can file counterproposals and the original bidders will have the chance to match the offer.

Proposals submitted by the groups include the expansion of passenger terminal buildings. The concession period will be for a period of 30 years.

“Davao and Kalibo airports will be developed as part of DOTr’s high-priority infrastructure projects under President Duterte’s ‘Build Build Build’ programme.”

The proposals will be evaluated by National Economic Development Authority for approval.

Chelsea Logistics received the OPS for the operation, maintenance and expansion of the Davao International Airport. It seeks to offer new technology to enhance passenger experience at the airport.

Meanwhile, Mega 7 Construction received the OPS for the operation, maintenance and upgrade of facilities and systems of the Kalibo airport.

Davao and Kalibo airports will be developed as part of DOTr’s high-priority infrastructure projects under President Duterte’s ‘Build Build Build’ programme.

In September, Aboitiz InfraCapital, the infrastructure business of Aboitiz Group, secured OPS for operation, maintenance, development, and expansion of the New Bohol International Airport.

In the same month, Naia Consortium was granted OPS by the Philippines Government for the rehabilitation, expansion, operation, upgrade, and maintenance of Ninoy Aquino International Airport for a 15-year period.