Chelsea Logistics Holdings Corporation (CLC), of Davao-based business tycoon Dennis Uy, has submitted its unsolicited proposal for the development and management of the Davao and New Bohol (Panglao) international airports to the Department of Transportation (DOTr).
CLC will operate and maintain the two airports while implementing various improvements to meet future passenger and aircraft movements for a concession period of 30 years.
The modernization of both Davao and Panglao international airports (two airlines are currently serving the Davao-Bohol route four times a week) would involve 3 phases amounting to at least P67 billion with no cost to the government according to CLC President and CEO Chryss Alfonsus Damuy.
“However, for the economic viability of the project, the succeeding works after the development of Phase 1 shall be subject to the traffic growth requirements and compliance with the minimum performance standards,” Damuy said in a statement Friday.
The DOTr will be evaluating the unsolicited proposal which was submitted on February 5, 2018.
The proposed reconfiguration and expansion of passenger terminal buildings are expected to provide convenience to the airport passengers according to CLC.
The firm projects that airport traffic will increase to 8 to 15 million passengers in Davao and 1. 5 to 2.1 million passengers in Panglao by 2050.
“If the government approves the CLC proposal in 2018, improvement of passenger experience and benefit to the community will start next year,” Damuy said.
Davao International Airport is expected to accommodate up to 30 hourly aircraft movements with the construction of a new full parallel taxiway providing improved airfield safety and efficiency.
Its cargo terminal will be almost three times its current capacity to keep up with expected air freight demand while Panglao International Airport’s facility will have expanded by 25 percent more by the end of the concession period.
“We expect that the enhanced air cargo channels of these airports will translate to a considerable increase in the cargo movements in the region, consequently, benefitting the logistics business of CLC,” Damuy said.
The Duterte administration seeks to build infrastructures that will provide connectivity of the rural areas to key cities across the country, enabling to attain the vision for the Philippines to become a middle-income economy in 2022 through its Build, Build, Build program.
Last year, Dennis Uy visited Bohol and met with top officials of the province, including Gov. Edgar M. Chatto and Provincial Administrator Alfonso “Ae” Damalerio II, as part of his mission to strengthen his investment foothold in the Visayas.
In Cebu, Uy’s business conglomerate has been authorized to pursue a multi-billion-peso venture, the Lapu-Lapu Leisure Mactan integrated resort, and casino.
Reports said Uy spent at least one billion pesos in acquiring one of the upscale resorts in Panglao Island.
The owner of Phoenix Petroleum is reportedly expanding his fuel business in the province of Bohol.
Meanwhile, the Aboitiz Group, through its infrastructure business unit, Aboitiz Infra Capital, has submitted a P148 million of unsolicited proposal to expand, rehabilitate, modernize and operate four regional airports, including the one in Panglao, Bohol.
The proposal stipulates the company is seeking a concession period of 35 years to operate not just the New Panglao-Bohol Airport, but also three airports in Iloilo, Bacolod-Silay and Languindingan in Cagayan de Oro.
The company state the multi-phased project will help transform the four regional airports into world-class facilities as efforts to decongest Metro Manila’s Ninoy Aquino International Airport move along.
Iloilo, Bacolod-Silay, and Languindingan are already operating above capacity, said the report. These three are due for immediate rehabilitation. The New Panglao-Bohol Airport, on the other hand, is yet to open. The start of commercial operation of the airport will happen by August this year.
Aboitiz Infra Capital Chief Executive Officer and president Sabin Aboitiz said, “through this unsolicited proposal, we intend to support the government’s ‘Build, Build, Build’ program as we develop sustainable airport facilities that reflect and support the tremendous economic and tourism potential of the Philippines’ regions and provinces.”
The company’s move comes after government recognized modernization of the regional airports as a critical infrastructure project and back in 2014 launched a tender for a public-private partnership for five airports, which was canceled last year.
It is essential to combine all of the available resources for the maintenance of the four airports, as it will greatly benefit all involved stakeholders, including the government.
Aboitiz added: “Not only will none of the airports require any form of subsidy, the combined potential of the four regional gateways results in overall gains for both the government and the local economy.”
If the proposal gets the greenlight, the company sees the start of the upgrade by 2019. The expansions and upgrades are expected to be completed by 2021.(with a report from PNA)