DOTr rejects firms’ unsolicited airport development proposals

The Department of Transportation (DOTr) has given more unsolicited proposals to develop regional airports in the country the thumbs down as the government opts to either stage public bidding or shoulder the cost of development.

Documents obtained by GMA News Online showed the P67-billion unsolicited proposal of Chelsea Logistics—owned by Davao-based businessman Dennis Uy—to upgrade and manage the Davao and Panglao airports has been rejected.

The DOTr has “adopted a policy to competitively bid out the operations and maintenance of airports under government jurisdiction, through a concession, particularly those airports that are deemed to exhibit viability,” the department said.

Apart from Chelsea’s, the Aboitiz InfraCapital Inc.’s P148-billion offer to take over the maintenance and operation of Iloilo, Bacolod-Silay, Laguindingan, and Bohol airports was given the thumbs down.

The Transportation department also declined the $12-billion unsolicited proposal of a consortium formed by companies led by the Sy and Tieng families to build the Philippine Sangley International Airport in Cavite as an alternative to the Ninoy Aquino International Airport.

Sy-led Belle Corp. and Tieng’s All Asia Resources and Reclamation Corp. formed the Sangley Airport Infrastructure Group Inc. and offered to build and operate an airport in Sangley Point, Cavite under a 50-year concession deal.

In its letter, the DOTr told Sangley Airport Infrastructure Group that it cannot accept its proposal and that “should the government pursue the Sangley Airport Development Project ... it will be implemented using its own resources.”

“The government also reserves the right to publicly solicit bids... and all qualified interested parties will be invited to participate and submit bids,” it said.

The DOTr also refused the offer of Mega7 Construction Corp. to upgrade, maintain, and operate the Kalibo International Airport as “the proponent does not exhibit sufficient experience in airport development, operations, and maintenance.”

The department noted that Mega7 Construction is 90 percent owned by Digichive Philippines Corp., a company primarily engaged in marketing and advertising and 10 percent owned by Dominion Intertrade Corp., a company engaged in general wholesale merchandise.

During a press briefing in Clark, Pampanaga, last week Transportation Secretary Arthur Tugade told reporters that the government is still open to accept unsolicited proposals with a caveat that not all unsolicited bids will be accepted.

“There are certain airports that are better to be bidded out such as Davao,” he said.

Tugade made it clear that he is against bundling airport projects. “Personally, ayaw ko ho nun. ‘Yung iba gusto. Bakita ayaw? Kasi gusto mo ba na isang tao lang ang mag-aadminister ng limang airport?” Tugade said.

Howerver, an unsolicited proposal has caught the eye of the government.

The DOTr is now carefully studying the unsolicited proposal of the so-called super consortium and Megawide to take over the operations, upgrade and maintenance of NAIA, Tugade noted. —VDS, GMA News