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Davao and Kalibo Airports are Up Next for Makeovers

Aviation regulators grant original proponent status to Chelsea Logistics and Mega7 to develop the two airports
IMAGE By G B_NZ (Philippine Airlines Dash Q-300 RP-C3016 at MPH) [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons
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Davao-based businessman Dennis Uy’s Chelsea Logistics Corporation (CLC) received the original proponent status from the Department of Transportation (DOTr) to develop, maintain and operate the Davao International Airport, the agency announced on October 23, Tuesday.

CLC’s unsolicited proposal was submitted to the DOTr on May 2018. In its initial proposal submitted in March, the company said the project is expected to boost Davao International Airport’s capacity to approximately eight million to 15 million passengers by 2050 at an estimated cost of Php49 billion. In 2017, the airport accommodated a total of 4.2 million domestic and international passengers according to data from the Civil Aviation Authority of the Philippines (CAAP).

The DOTr said CLC also proposed to incorporate innovative systems in the development of the airport, such as the installation of a data-collecting operator and other passenger-friendly technology to enhance passenger experience and deliver efficient operations. The project’s concession period is for 30 years. 

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“Being Mindanao’s premier gateway, the Davao International Airport is targeted to be able to accommodate up to 30 hourly aircraft movements with the construction of a new full parallel taxiway providing improved airfield safety and efficiency,” the company said in a press release in March.

Apart from Davao International Airport, the DOTr also granted original proponent status to Mega 7 Construction Corporation’s Php3.8-billion proposal to upgrade Kalibo International Airport.

Mega 7 Construction Corporation proposed to operate, maintain and upgrade the facilities and systems of the airport. Like CLC’s proposal, Mega 7 Construction Corp. also proposed to expand the airport’s passenger terminal buildings and it also has a concession period of 30 years.

Both proposals were granted through the CAAP board, which is also headed by Transportation Secretary Arthur Tugade. Its members include CAAP Director General Jim Sydiongco, Tourism Secretary Bernadette Romulo Puyat, Finance Secretary Carlos Dominguez III, Interior and Local Government Secretary Eduardo Año, Foreign Affairs Secretary Teodoro Locsin, Jr., Labor Secretary Silvestre Bello III and Secretary Menardo Guevarra. 

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The proposals are now subject to the evaluation of the National Economic Development Authority (NEDA). They will also have to still go through Swiss challenge where other groups may present counterproposals, for which the original proponents have the option to match. 

The two airports are among the DOTr and Duterte administration’s high priority infrastructure projects under the Build, Build, Build program.

This story originally appeared on Entrepreneur.com.phMinor edits have been made by the Esquiremag.ph editors.

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Pauline Macaraeg for Entrepreneur.com.ph
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