Airport Technology, 16 December 2014
The tenders for six airport projects in the Philippines, which would cost approximately PHP116bn ($2.6bn), will be offered next year under a public-private partnership (PPP) scheme to help upgrade the country’s infrastructure.
Investors have been invited by the Department of Transportation and Communications (DOTC) to pre-qualify and bid for contracts to develop, operate and maintain airports in important cities and tourist hubs across central and southern Philippines.
The DOTC said in a statement: “The fact that the traffic at these airports has either exceeded their current design capacities or is nearing the design capacity levels, coupled with the anticipated influx of growing number of domestic and international passengers in years to come, make the fast and proactive development of these airports crucial.”
The country currently attracts close to six million tourists a year and wants to increase that number to ten million foreign tourists by 2016.
The contracts that would be up for bidding would involve the expansion and upgrade of the Davao International Airport for PHP40.6bn, the Iloilo International Airport for PHP30.4bn, the Bacolod-Silay International Airport for PHP20.3bn and the Laguindingan Airport for PHP14.6bn.
According to data from the DOTC, a total of 7.7 million passengers were handled by the four airports last year.
Upon completion of the construction, the operations and maintenance for the PHP4.6bn New Bohol Airport and the PHP5.8bn Puerto Princesa Airport will be turned over to the private sector.
The DOTC also said that two or more of the airports could be merged by the government to make them more attractive to investors.
According to a Reuters report, San Miguel, JG Summit Holdings, Megawide Construction and Aboitiz Equity Ventures have expressed interest to bid for the airport projects in the provinces to diversify their revenues.
Philippine Daily Inquirer, 16 December 2014
By Miguel R. Camus
The Department of Transportation and Communications (DOTC) on Monday rolled out its next airport public-private partnership (PPP) deal, which involves the bundling of major provincial airport projects valued at P116 billion.
The PPP project involves turning over to the private sector the maintenance and operations contracts of airports in Bacolod-Silay, Davao, Iloilo, Laguindingan, New Bohol (Panglao) and Puerto Princesa, which are gateways to major tourism and business destinations across the country.
This comes a year after the government auctioned its first airport PPP, the P17.5 billion Mactan Cebu International Airport. The Cebu airport project drew competitive bids from major conglomerates and was eventually bagged by a consortium between Megawide Construction Corp. and Indiaâ€™s GMR Infrastructure.
The DOTC, which did not indicate a deadline for qualification documents for the provincial airports, said some of these projects would need immediate expansion, either in terms of capacity or other facilities.
It said this would cover the Bacolod Silay International Airport (P20.26 billion), Davao International Airport (P40.57 billion), Iloilo International Airport (P30.4 billion) and Laguindingan Airport (P14.62 billion).
For those projects, the DOTC said â€śthe private sector proponent shall take over the operations and maintenance of the airport, undertake immediate expansion of the passenger terminal building, apron, other airside and landside facilities and any capacity augmentation of the airportâ€ť needed to meet future demand.
For the gateways in Panglao and Puerto Princesa airport, the DOTC said the O&M contract would be turned over to the private sector upon completion of ongoing construction activities.
The New Bohol (Panglao) Airport is expected to be completed in 2017 although no schedule was provided for the Puerto Princesa airport.
The bid invite also did not detail in what way the provincial airport deals would be bundled. Investors, in a previous forum discussing this matter, said it was important for the projects to achieve scale in terms of passenger volume so they could lure major international airport operators.
The DOTC is also studying the privatization of the O&M and possible expansion of the Ninoy Aquino International Airport in Manila, the countryâ€™s busiest gateway.
Transportation Secretary Joseph Abaya said the plan was being reviewed and consultants have been procured. He noted that it was possible to bid out the Naia project under a PPP structure before President Aquino steps down in 2016.
Business World, 16 December 2014
By Chrisee Jalyssa V. Dela Paz
THE GOVERNMENT yesterday formally called for bidders for P116.23 billion worth of contracts to develop, operate and maintain (O&M) six regional airports under its public-private partnership (PPP) program, according to a notice published in three newspapers.
Through an invitation to pre-qualify and bid, the Department of Transportation and Communications and Civil Aviation Authority of the Philippines sought interested parties to submit applications to finance, design, build, operate and maintain the facilities for 30 years.
The six projects are: P4.57-billion New Bohol (Panglao) Airport; P5.81-billion Puerto Princesa Airport; P14.62-billion Laguindingan Airport; P20.26-billion Bacolod-Silay International Airport; P30.40-billion Iloilo Airport; and P40.57-billion Davao International Airport.
The bid notice said the projects â€śaim to improve services and enhance the airside and landside facilities of the key regional airports by entering into concession agreements with the private sector.â€ť
The document noted that Bacolod-Silay, Iloilo, Laguindingan and Puerto Princesa airports have already exceeded their estimated passenger capacity, while the Davao facility â€śis expected to breach its estimated design capacity in the next few years.â€ť The planned new Bohol airport, on the other hand, will be designed to handle up to 1.7 million passengers a year.
Under the planned concession for Bacolod-Silay, Davao, Iloilo and Laguindingan airports, the winning private sector bidder will take over O&M and promptly start expanding the passenger terminal building, apron, other airside and landside facilities, as well as â€śany capacity augmentation… that may be required to cater to future demand throughout the contractual term.â€ť
O&M for the new Bohol and the Puerto Princesa airports will be turned over to the winning bidder upon completion of construction. â€śThe proponent shall also be required to develop/expand capacty to cater to future demand throughout the contractual term,â€ť the notice read.
Transportation Undersecretary for Legal Affairs Jose Perpetuo M. Lotilla said in an interview at the sidelines of a committee hearing at the House of Representatives in Quezon City yesterday that his department was looking at breaking up the airport tender into two contracts covering three projects each.
â€ś[T]he BAC (bids and awards committee of Transportation department) is considering bundling them…,â€ť Mr. Lotilla said, saying each bundle of three projects would be roughly equivalent to an estimated annual throughput of five million passengers.
â€śOne contract will be the development and O&M of Laguindingan, Bohol and Davao, while a second contract will be for Puerto Princesa, Iloilo and Bacolod,â€ť he explained.
â€śThis is to make it more strategic to investors. Some investors asked before why not bundle it according to throughput of passengers.â€ť
Saying the grouping was still â€śpreliminaryâ€ť, Mr. Lotilla said â€śthis will depend largely on the inputs of interested groups during the process prior to bidding itself.â€ť
The notice said interested parties may acquire invitation documents consisting of the invitation to pre-qualify and bid, project information memorandum (PIM) and instructions to prospective bidders (ITPB) after paying a non-refundable fee of P1 million. The PIM will be available by Dec. 23 while the ITPB will be made available some time in February next year.
â€śOnly bidders who have purchased the invitation documents… shall be allowed to participate in the pre-qualification and bidding process,â€ť the notice read.
PPP Center Executive Director Cosette V. Canilao had bared as early as December last year â€śinitialâ€ť plans to bundle the six airport development and O&M deals for auction, citing the need to make sure the small projects would attract enough investors.
Officials of companies that had bid for other PPP deals had earlier expressed interest in these bundled airport deals.
Manuel Louie B. Ferrer, president of GMR-Megawide Cebu Airport Corp. (GMCAC) that Megawide Construction Corp. and Bangalore-based GMR Infrastructure after bagging the P17.5-billion Mactan-Cebu International Airport PPP project last April, said in an interview on the sidelines of the launch of the new airportâ€™s brand in October that â€śit makes senseâ€ť for the partnership to bid for the other airport deals.
Metro Pacific Investments Corp. (MPIC) Chief Financial Officer David J. Nicol said at the sidelines of a press briefing in Tokyo, Japan last month: â€śWeâ€™ll look into the bundled airports.â€ť
â€śWeâ€™ll wait for the release of the terms of the projects and see if they are strategic to us.â€ť
Ayala Corp. Managing Director John Eric T. Francia told reporters at the sidelines of an event in Makati City early this month: â€śWeâ€™ll look at it. To be honest, we need to study first what the package consists of. Once that is launched by the government, weâ€™ll see.â€ť
The Transportation department now also aims to roll out the P18.99-billion Davao Sasa Port Modernization PPP project within the month.
Eight PPP projects have been awarded so far by the Aquino government since the late-2010 launch of this flagship infrastructure program: the P64.9-billion Light Rail Transit Line 1 (LRT-1) Cavite Extension; the P1.72-billion Automatic Fare Collection System; the P17.52-billion Mactan-Cebu International Airport Passenger Terminal Building; the P2.01-billion Daang Hari-South Luzon Expressway Link Road; the P15.52-billion Ninoy Aquino International Airport Expressway; the P16.28-billion first phase of the PPP for School Infrastructure Project (PSIP); the PSIPâ€™s P3.86-billion second phase; and the P5.69-billion Philippine Orthopedic Center modernization.
Malaya Business Insight, 16 December 2014
The Department of Transportation and Communications (DOTC) said has rolled out P116-billion worth of airport modernization projects whose operations and maintenance (O&M) would be bundled for bidding nu early next year.
The DOTC yesterday invited private proponents for the first round of the two-stage bidding process. The first stage involves the financial and technical side prior to the actual submission and opening of the bids.
Any clarification, including the bundling of the airports, will be discussed during the pre-qualification stage of the bidding. No date has been set by the DOTC.
According to UndersecretaryJose Perpetuo Lotilla, the DOTC is leaning towards the bundling of the airports to make it more attractive to bidders. This means one proponent can bid for all the multiple projects in one go.
The idea is to hit a minimum of 5 million passengers for the airports to be more palatable to the bidders.
The identified airport projects include: the P20.26-billion Bacolod-Silay airport, P40.57-billion Davao airport, the P30.4-billion Iloilo airport, the P14.62-billion Laguindingan airport, theP4.57-billion New Bohol (Panglao) airport and the P5.81-billion Puerto Princesa airport.
The DOTC eyes geographical bundling of the airports.
There will be two bundles: Iloilo, Bacolod and Puerto Princesa airports and the Lagundingan, Davao and Bohol bundle, if the thoroughfare is considered.
The geographical bundling would be the East bundle composed of Puerto Princesa, Iloilo, Bacolod and the West bundle: Bohol, Laguindingan, Bacolod.
The proposed concession entails the O&M of the airports, as well as the expansion and modernization of the facilities to cater to future demands throughout a 30-year agreement.
The Public Private Partnership project aims to improve services and enhance the airside and landside facilities of the key regional airports.
The O&M for the New Bohol (Panglao) and the Puerto Princesa airports shall be turned over to the winning concessionaire upon completion of construction.
Rappler, 15 December 2014
The concessionaire will develop, operate, and maintain 6 provincial airports in the country
MANILA, Philippines â€“ The search is on for a concessionaire that will develop, operate, and maintain 6 provincial airports, in a bundled contract of P116.2 billion ($2.60 billion*), the Department of Transportation and Communications (DOTC) announced Monday, December 15.
DOTC, through the Civil Aviation Authority of the Philippines (CAAP), invited prospective bidders to submit bids to pre-qualify and bid to finance, design, construct, operate, and maintain the following airports:
DOTCâ€™s Bids and Awards Committee (BAC) is considering bundling the 6 airports based on location, spokesperson Michael Arthur Sagcal said.
The DOTC is looking at bundling the airports in the east consisting of Puerto Princesa, Iloilo, and Davao, while those in the west will be comprised of New Bohol (Panglao), Laguindingan (Misamis Oriental), and Bacolod-Silay.
“The intention is to bundle the airports, but this will depend largely on the inputs of interested groups during the process prior to the bidding itself,” Sagcal said.
The private sector concessionaire for the Bacolod-Silay, Davao, Iloilo, and Laguindingan airports will take over operations and maintenance; undertake immediate expansion of the passenger terminal buildings, apron, other airside, and landside facilities; and any capacity augmentation throughout the contract.
The private proponent would also take over the operations and maintenance of the New Bohol (Panglao) and Puerto Princesa airports.
A 30-year concession contract would be awarded through a competitive bidding following the rules and procedures prescribed under Republic Act (RA) 6957, as amended by RA 7718 otherwise known as the Build-Operate-Transfer (BOT) Law.
The bundled airports project will be implemented through the operate-add-transfer agreement, whereby DOTC and CAAP will enter into concession agreements for the expansion, operations, and maintenance of the existing airports to private operators, DOTC said in the invitation.
The DOTC is set to apply the 2-stage / 2-envelope system for soliciting bids under the BOT Law.
The preliminary information memorandum was made available on December 3, while the instruction to prospective bidders will be available in February 2015.
Traffic at the 6 provincial airports has either exceeded or is nearing their design capacity levels, DOTC said.
Traffic at the Davao International Airport is growing at an annual rate of 10.56% over the past 5 years and handled 2.79 million passengers in 2013, making it the 3rd busiest airport in the Philippines after the Ninoy Aquino International Airport (NAIA) and the Mactan-Cebu international airport.
Passenger volume at the Iloilo International Airport is growing at an average rate of 11% over the past 5 years to hit 1.82 million last year thus making it the 5th busiest airport in the country.
The 6th busiest, the Laguindingan Airport in Misamis Oriental, saw an increase in its volume to 15.1%, hitting 1.78 million last year.
Puerto Princesa Airport, meanwhile, saw an average increase of 22.8% to hit 1.33 million.
The Bacolod-Silay International Airport grew an average of 9.6% to reach 1.32 million in 2013.
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. â€“ Rappler.com
*$1 = P44.67
ReutersÂ / ABS-CBN News, 15 December 2014
(Reuters) – The Philippines will offer for tender next year six airport projects worth 116 billion pesos ($2.6 billion) under a public-private partnership (PPP) scheme to help upgrade the country’s aging infrastructure.
The Department of Transportation and Communications (DOTC) invited investors to pre-qualify and bid for contracts to develop, operate and maintain airports in key cities and tourist hubs in the central and southern Philippines.
“The fact that the traffic at these airports has either exceeded their current design capacities or is nearing the design capacity levels, coupled with the anticipated influx of growing number of domestic and international passengers in years to come, make the fast and proactive development of these airports crucial,” DOTC said in a published notice.
With white sandy beaches and tropical weather, the Philippines wants to attract 10 million foreign tourists by 2016 from a target of more than 6 million this year to boost one of Asia’s fastest growing economies.
Up for bidding next year are concession contracts to operate and expand the Davao International Airport for 40.6 billion pesos, the Iloilo International Airport for 30.4 billion pesos, the Bacolod-Silay International Airport for 20.3 billion pesos and the Laguindingan Airport for 14.6 billion pesos.
The four airports served 7.7 million passengers last year, DOTC data showed.
The operations and maintenance for the 4.6 billion peso New Bohol Airport and the 5.8 billion peso Puerto Princesa Airport will be turned over to the private sector upon completion of the construction. Existing airports in Puerto Princesa and Bohol handled a combined 2.1 million passengers last year.
The DOTC said the government would combine two or more airport projects when they open them for bidding to make them more attractive to investors.
San Miguel Corp (SMC.PS), JG Summit Holdings Inc (JGS.PS), Megawide Construction Corp (MWIDE.PS) and Aboitiz Equity Ventures Inc (AEV.PS) have expressed interest to bid for the airport projects in the provinces to diversify their revenues.
Since launching the PPP program in 2010, the government has awarded eight infrastructure projects worth around 127.5 billion pesos consisting of toll roads, schools, an automated fare collection system, a railroad and a hospital.
In October, Philippine President Benigno Aquino gave the go-ahead for $3.7 billion worth of new infrastructure projects to upgrade aging roads, airports and ports.
(Reporting By Neil Jerome Morales; Editing by Jacqueline Wong)
InterAksyon, 15 December 2014
By Darwin G. Amojelar
MANILA – (UPDATED 3:28 p.m.) The operations and maintenance (O&M) of six airports will be bundled into two contracts that will be auctioned off under the government’s public-private partnership (PPP) program.
In a bid bulletin, the Department of Transportation and Communications (DOTC) identified the following airports and their corresponding budgets:
Under the proposed concession for the six airport projects, the private sector proponent should take over the operations and maintenance, undertake immediate expansion of the passenger terminal building, apron, other airside and landside facilities and any capacity augmentation of the airport that may be required to cater to future demand throughout the contractual term.
In addition, the O&M for the New Bohol (Panglao) and the Puerto Princesa irports would be turned over to the private sector proponent upon completion of construction.
“The proponent shall also be required to develop/expand capacity to cater to future demand throughout the contractual term,” DOTC said.
The DOTC said the instructions to prospective bidders will be available in February.
“The intention is still to bundle the airports, but that will depend largely on the inputs of interested groups during the process prior to bidding itself. Preliminarily, the [bids and awards committee] is considering bundling them geographically: East (Puerto Princesa, Iloilo, Bacolod) and West (Bohol, Laguindingan, Bacolod),” Michael Arthur Sagcal, DOTC spokesperson said.
Earlier, the government bid out the Mactan Cebu International Airport project, the contract for which was bagged by the Megawide-GMR Infrastructure consortium.
GMA News, 15 December 2014
By Kathryn Mae P. Tubadeza
To improve the services and infrastructure of various airports in the Philippines, the Department of Transportation and Communications (DOTC) on Monday called for companies to go for the bundled development, operation and maintenance project for six regional gateways.
In an invitation to prequalify and bid, DOTC and Civil Aviation Authority of the Philippines are inviting prospective bidders to submit applications to finance, design, construct, operate and maintain the projects for 30 years.
The public-private partnership (PPP) project aims to improve services and enhance the airside and landslide facilities of the key regional airports: Bacolod-Silay International Airport (P20.26 billion), Davao International Airport (P40.57 billion), Iloilo International Airport (P30.4 billion), Laguindingan Airport (14.62 billion), Puerto Princesa Airport (5.81 B) and New Bohol Airport (4.57 billion).
DOTC noted the development of the airports is crucial as traffic has either “exceeded their current design capacities or is nearing the design capacity levels, coupled with the anticipated influx of growing number of domestic and international passengers in the years to come.”
According to the project description, the private company will take over the operations and maintenance, immediate expansion of the passenger terminal building, apron, other airside and landside facilities, and any capacity augmentation of Bacolod-Silay, Davao, Iloilo and Laguindingan airports.
For New Bohol and Puerto Princesa airports, the proponent will take over the operation and maintenance upon completion of construction and the development and expansion of capacity to cater to future demand.
Construction of New Bohol will start next year and is expected to be completed in 2017 to replace the existing Tagbilaran Airport while for Puerto Princesa, construction of a new terminal, augmentation of runway, and expansion of airside and landslide facilities are ongoing.
DOTC spokesman Michael Arthur Sagcal said the agency will bundle the airports depending on the inputs of interested parties.
“The intention is still to bundle the airports but that will depend largely on the inputs of interested groups during the process prior to bidding itself,” Sagcal told GMA News Online.
He said the Bids and Awards Committee is considering bundling the projects geographically â€“ east to include Puerto Princesa, Iloilo and Bacolod and west to include Bohol, Laguindingan, and Davao.
“This may change based on the bidder’s capability to operate these airports in different building options,” he said.
PPP Center executive director Cosette Canilao earlier said the government bundled the six airports into one PPP project due to the demand of investors.
The projects will be implemented under an operate-and-transfer contract, where DOTC and CAAP will enter into concession agreements to expand, operate and maintain the airports with private operators.
Concessionaires will operate the facility on behalf of the implementing agencies in line with specified performance standards and specifications.
The project information memorandum will be available to interested parties by Dec. 23 and the instructions to prospective bidders in February next year. â€“ VS, GMA News
The Philippine Star, 05 November 2014
By Lawrence Agcaoili
MANILA, Philippines – The Department of Transportation and Communications (DOTC) is set to bid out a P14.6-billion operation and maintenance (O&M) contract for the Laguindingan airport next month.
Transportation Secretary Joseph Emilio Abaya said the government is set to bid out a contract to operate and maintain including an infrastructure component for the Laguindingan airport that was opened in June last year.
â€śDue to years of delay, Laguindingan was already at capacity by the time we opened it last year. To spare future administrations from similar issues, we are incorporating an infra expansion component into the operations contract that we will bid out in December,â€ť Abaya said.
The more modern Laguindingan Airport replaced the older Lumbia Airport in Cagayan de Oro. It was supposed to be operational way back in 2006. The Lumbia airport served a little over 1.6 million passengers per year
Passenger volume rose sharply and is expected to hit 2.58 million passengers by 2017.
Abaya said the public private partnership (PPP) project would be awarded in the third quarter of next year.
The enhanced 30 to 35-year contract would cover a civil works component worth P14.6 billion including the development and expansion of the cargo terminal building and the runway, and the construction of a new passenger terminal building starting the middle of 2016.
Meanwhile, night landing operations of the Laguindingan airport is set to start within the month as all the air navigation and airfield ground lighting systems have been installed and tested by the Civil Aviation Authority of the Philippines (CAAP).
â€śWe are happy to announce that the Laguindingan Airport is now equipped for night landing operations. We hope to activate evening flights by the end of November in order to give the public more flight options as well as to decongest the airport during the day,â€ť Abaya said.
In line with certain policies and procedures of the International Civil Aviation Organization (ICAO), officials from DOTC and CAAP are now conducting a joint inspection until Nov. 6 for safety purposes in order to double-check on any possible system defects.
CAAP would then prepare the standard guidelines for arrival and departure procedures for compliance by the airlines using the airport in Northern Mindanao.
After this, CAAP and the airlines would organize flight schedules to ensure orderly operations and to prevent air traffic and terminal congestion.
â€śNight flights mean more flights and more options for passengers. As the gateway to Northern Mindanao, this development will spur greater economic activity to the bustling business and tourist destinations in Cagayan de Oro, Bukidnon, Iligan, and neighboring areas,â€ť the DOTC chief added.
Rappler, 04 November 2014
By Mick Basa
Recently opened Laguindingan Airport will be undergoing expansion as the government is set to begin bidding out its operations and maintenance contact in December
MANILA, Philippines â€“ The government is slated to bid out the operations and maintenance contract of Misamis Orientalâ€™s Laguindingan Airport in December.
Upgrading the Laguindingan Airport, which would modernize the airportâ€™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.
â€śIt is meant to satisfy the projected number of passengers for the next 3 decades, as well as to maintain the airportâ€™s facilities and services at international standards,â€ť Abaya said in a statement on Tuesday, November 4.
The airport serves flights to Cagayan de Oro City, although it is located outside Misamis Orientalâ€™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.
â€śThe airport was meant to be completed way back in 2006, but was not fully executed until last year,â€ť 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.
Meanwhile, the DOTC announced that the airport may soon begin night operations, as the Civil Aviation Authority of the Philippines (CAAP) looks into the airportâ€™s night landing capacity until November 6. The development has elated commercial carriers.
â€śItâ€™s a very positive development as this will allow us to mount more flights especially this coming Christmas seasonâ€ť 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 Laguindinganâ€™s night landing capability, but â€śwe 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. â€“Rappler.com