DOTr, CAAP Board grants OPS to develop Davao, Kalibo Airports

THE DEPARTMENT of Transportation, through the Civil Aviation Authority of the Philippines (CAAP), has granted Original Proponent Status (OPS) to Chelsea Logistics Holdings Corporation for Davao International Airport, while Mega 7 Construction Corporation was given OPS to the Kalibo International Airport (KIA).

The CAAP Board, which is headed by DOTr Sec. Arthur Tugade, has obtained the needed number of signatures from its members and released the grant of OPS in favor of the Kalibo and Davao proponents on Friday, 19 October 2018. The Board is currently meeting with the proponents to facilitate completion of requirements by the National Economic Development Authority (NEDA), who will still evaluate the proposals for approval.

The CAAP Board is composed of DOTr Sec. Tugade, CAAP Dir. Gen. Jim Sydiongco, Department of Tourism Sec. Bernadette Romulo Puyat, Department of Finance Sec. Carlos Dominguez III, Department of Interior and Local Government Sec. Eduardo Año, Department of Foreign Affairs Sec. Teodoro Locsin, Jr., Department of Labor and Employment Sec. Silvestre Bello III, and Department of Justice Sec. Menardo Guevarra.

The OPS granted to Chelsea Logistics Holdings will be for the operation, maintenance and expansion of the Davao International Airport. It will also offer a new technology to enhance passenger experience and an airport operator which captures data to deliver efficient operations.

Meanwhile, the OPS given to Mega 7 Construction will be for the operation, maintenance and upgrade of facilities and systems in the Kalibo International Airport.

The Chelsea Logistics Holdings submitted its PhP49-billion unsolicited proposal (USP) to the DOTr on 28 May 2018, while Mega 7 Construction Corporation sent their USP of PhP3.8-billion on 6 August 2018. The DOTr and CAAP have no objections on the unsolicited proposals, subject to legal, technical and financial conditionalities.

Both proposals will also include the expansion of Passenger Terminal Buildings and a concession period for 30 years.

These unsolicited proposals will still have to undergo Swiss challenge. This means other groups may submit counterproposals and both companies have the option to match.

The Davao and Kalibo International airports have been lined up for development and among DOTr’s high priority infrastructure projects under President Duterte’s “Build Build Build” program.

The Duterte administration, through the leadership of DOTr Sec. Arthur Tugade, is keen on developing new international and regional airports to enhance connectivity and mobility, as well as address congestion in premiere gateways.##

-DOTr