The Department of Transportation (DOTr) plans to implement the hybrid Public Private Partnership (PPP) model in the P40.57-billion Davao airport development, operations and maintenance project to fasttrack its completion.
The Davao airport was among the five regional airports set to be auctioned on June 15.
Arthur Tugade, DOTr secretary, told reporters the agency is studying if it is better for government to undertake the project construction then bid out the operation and maintenance component to the private sector.
Under new hybrid PPP formula, the government selects, finances and builds big-ticket projects through competitive public bidding. Upon completion, these projects’ operation and maintenance (O&M) are auctioned off to the private sector.
The changes would require DOTr to go back to National Economic Development Authority (NEDA) board for approval.
Last January, the DOTr opened the bidding for the P110.4-billion five unbundled regional airports to new bidders after the Duterte administration approved the unbundling of these projects in November 2016.
These projects are now considered individual projects but will be auctioned off simultaneously.
The other airports include Bacolod-Silay, P20.26 billion; new Iloilo, P30.4 billion; Laguindingan, P14.62 billion and; new Bohol (Panglao), P4.57 billion.
These PPP projects will improve the regional airports’ services by allowing private sector partners to operate, maintain and improve the airports’ airside and landside facilities. This is in line with the government’s goal to develop international gateways in the different regions in the country.
Metro Pacific Investment Corp., one of the prequalified bidder for the projects, has not made a decision on whether or not it would participate in the bidding.
“We will have to see if we can find technical partners who are interested in the remaining airport as a bundle. If we find a partner, yes, we will be interested to participate. But it all depends on our ability to attract a partner given that these are the smaller airports,” said Jose Maria Lim ,MPIC president and chief executive officer.
Other prequalified bidders are Filinvest-Jatco-Sojitz Consortium (composed of Filinvest Development Corp.; Japan Airport Terminal Co., Ltd; Sojitz Corp.), GMR Infrastructure and Megawide Consortium (composed of Megawide Construction Corp.; GMR Infrastructure (Singapore) Pte. Limited (GISPL)), Maya Consortium (Aboitiz Equity Ventures, Inc; VINCI Airports SAS), and SMHC-IIAC Airport Consortium (San Miguel Holdings Corp; Incheon International Airport Corp. )
05 May 2017
