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Two private firms propose to improve airports in Visayas and Mindanao.

Private firms propose to improve regional airports

Dennis Uy’s Chelsea Logistics and Mega7 Construction are investing P49 billion and P12 billion, respectively, under their revised unsolicited proposals to operate, maintain and expand provincial airports in Visayas and Mindanao which are being evaluated by the Civil Aviation Authority of the Philippines (CAAP).

Transportation Undersecretary Ruben Reinoso said the CAAP board agreed to consider the two unsolicited proposal after the Department of Transportation (DOTr) favorably endorsed the projects to the agency which has jurisdiction over regional airports.

CAAP and the project proponents will soon discuss the terms and conditions of their offers.

Reinoso earlier said the DOTr’s planning office has endorsed in early September to CAAP proposals for the Kalibo and Davao airports.

“The board met and based on the evaluation undertaken by DOTr, they are now looking into the details of the proposals and then they will invite the proponent for some discussion for the contents of the proposals and then come to a conclusion and agreement on whether it is acceptable to CAAP, and then subsequently endorse it to the NEDA ICC for consideration,” Reinoso said.

Reinoso said both projects have a 30-year proposed concession period.

Chelsea submitted an unsolicited proposal for the Davao International Airport, while Mega7 made an offer for the Kalibo International Airport.

Chelsea earlier submitted a bundled unsolicited proposal for a number of the country’s regional airports, but was rejected by the DOTr due to a change in policy direction.

The agency has instead asked the company to unbundle its proposal given that many of the airports can stand on their own, resulting in Chelsea picking the Davao International Airport.

Mega7’s earlier proposal was also rejected by the government as the proponent lacked experience in airport development, operations and maintenance.

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