Chelsea Logistics and Infrastructure Holdings Corp. is hoping to soon win the government’s final approval for its P49-billion offer to upgrade and operate Davao International Airport.
Chelsea Logistics on May 2018 made an unsolicited offer to operate Davao Airport, the county’s third busiest air hub, under a 30-year concession.
The proposal included future upgrades that would increase capacity given strong growth prospects for the Mindanao gateway. The company won original proponent status last year and the project was now being evaluated by the National Economic and Development Authority (Neda).
“With the pace of the approval process, we are positive to receive the green light from Neda soon so we can move forward with development of the primary gateway to Mindanao and the third largest airport in the country,” Chelsea president and chief executive Chryss Alfonsus V. Damuy said in the statement.
Chelsea Logistics’ offer would be subjected to a Swiss challenge, a bidding process allowing rivals to submit better offers. As original proponent, Chelsea Logistics has the right to match a superior offer and win the project.
Under a Department of Transportation and Communication policy, unsolicited offers should not require any subsidies or guarantees from the national government.
In its statement, Chelsea Logistics said it had the support of the local business community.
It said the Davao City Chamber of Commerce and Industry, Inc. had endorsed the project and urged the national government to “vigorously pursue and expedite the ongoing process of reviews and approvals of the Davao Airport.”
Chelsea Logistics is part of Udenna Corp., a logistics, energy, education and property holding company owned by businessman Dennis A. Uy. Both companies are also venturing into new businesses.
Chelsea and Udenna joined forces with state-backed China Telecom to win the third telco selection process last November. Their consortium committed to invest at least P257 billion over five years to establish a nationwide mobile network.