Talks for Davao, Bicol, Siargao 'bundled' airports privatization nears completion -- CAAP

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The negotiations for the proposed private sector takeover of three regional airports in Davao, Bicol, and Siargao is nearing completion to proceed to a competitive bidding, according to the Civil Aviation Authority of the Philippines (CAAP).

The project involves the bundled development, operation, and maintenance by a private consortium of the Davao International Airport and Bicol International Airport over a 30-year concession period and Siargao Airport for a 15-year concession period.

The P21.64-billion project was an unsolicited proposal from Philippine Regional Airports Consortium —composed of Filinvest Infra-Solutions Ventures, Inc., JG Summit Infrastructure Holding Corporation, and Asian Infrastructure and Management Corporation.

“It’s already in negotiations stage… it is about to be finished,” CAAP director general Raul del Rosario told reporters at the sidelines of a forum organized by the European Chamber of Commerce of the Philippines (ECCP) in Pasay City.

Del Rosario said the bundled airports project is already with the Public-Private Partnership (PPP) Center.

Del Rosario said that once negotiations are done, the Swiss Challenge or competitive bidding —wherein the original proponent can match or counter rival offers.

The scope of work for each of three airports in the bundle are as follows:

Davao International Airport

• Phase 1 (up to 2041 ): Upgrade works mainly comprising passenger terminal building (PTB) expansion and renovation, upgrades to the existing cargo terminal, construction of a fire station, apron and parking lot expansion, installation of a parallel taxiway, and expansion of passenger access roads.
• Phase 2 (until 2056): Capacity augmentation including further PTB expansion and renovation, construction of a new cargo terminal, additional apron and parking lot expansion, and expansion of the ground service equipment roads.

Bicol International Airport

• Phase 1 (up to 2041): Renovation of the existing international area of the to enable swing operations, along with PTB expansion to accommodate additional remote gates and a new pier.
• Phase 2 (until 2056): Capacity augmentation including further PTB expansion and renovation.

Siargao Airport

• Phase 1 (until 2041 ): Expansion and renovation of the PTB to comply with IATA Level of Service Optimum Standards.