The Department of Transportation (DOTr), through the Civil Aviation Authority of the Philippines (CAAP), has granted original proponent status (OPS) to Chelsea Logistics Holdings Corporation and Mega 7 Construction Corporation for their unsolicited proposals to develop the airports of Davao and Kalibo.
The CAAP Board, headed by Transport Secretary Arthur Tugade, last October 19 obtained the needed number of signatures from its members and released the grant of OPS in favor of the Davao and Kalibo proponents. The CAAP Board is now meeting with the proponents to facilitate completion of requirements from the National Economic and Development Authority (NEDA), which will evaluate the proposals, DOTr said in a statement.
The OPS granted to Chelsea Logistics is for the operation, maintenance, and expansion of Davao International Airport while Mega 7 Construction’s OPS is for the operation, maintenance, and upgrade of facilities and systems at Kalibo International Airport.
Both proposals include the expansion of passenger terminal buildings and have a concession period of 30 years.
Chelsea Logistics submitted its P49-billion unsolicited proposal to DOTr on May 28, 2018, while Mega 7 Construction sent its P3.8-billion unsolicited proposal on August 6, 2018. Both corporations’ unsolicited proposals were submitted after DOTr rejected their first unsolicited proposals early this year.
Chelsea Logistics last February submitted an unsolicited proposal for a bundled operation of Davao and Panglao airports, which was rejected by Tugade as he preferred unbundled airport projects. Mega 7’s proposal was rejected because “the proponent does not exhibit sufficient experience in airport development, operations, and maintenance.”
DOTr and CAAP have no objections to the second unsolicited proposals, subject to legal, technical, and financial conditionalities, the transport department said.
The unsolicited proposals, however, will still have to undergo Swiss challenge, which means other groups may submit counterproposals that both companies have the option to match.
Davao and Kalibo airports have been lined up for development and are among DOTr’s high-priority infrastructure projects under the administration’s Build, Build, Build infrastructure program.
DOTr is keen to develop new international and regional airports to enhance connectivity and mobility, as well as address congestion in the country’s premier gateways.
