Chelsea resubmits Davao airport proposal

Businessman Dennis A. Uy’s offer to expand and operate the Davao International Airport has been revised and resubmitted in compliance with a requirement from the Department of Transportation (DOTr).

Reuben Reinoso, transportation undersecretary for planning, said in a text message that the offer of Uy-led Chelsea Logistics and Infrastructure Holdings Corp. was now being reviewed.

Chelsea’s Davao Airport offer, which had a previous project cost of P49 billion, was among nine unsolicited airport offers that were returned to their proponents in June.

The Duterte administration wanted all proposals to follow the language used in the concession of the Clark International Airport, which was recently turned over to a consortium led by JG Summit Holdings, Filinvest Development Corp. and a unit of Singapore’s Changi Airport.

The Clark Airport contract required the private sector to take on more risks, including the removal of the usual compensation triggers should the project be affected by future laws.

Apart from Chelsea’s Davao Airport offer, Aboitiz InfraCapital’s also resubmitted its proposal to develop and operate the Bohol Panglao International Airport.

Aboitiz InfraCaptial, a subsidiary of Aboitiz Equity Ventures, was later granted an original proponent status and its offer was endorsed to the National Economic and Development Authority for final approval, Reinoso said.

In the case of Chelsea, its offer was made in May 2018. It sought to operate Davao Airport, the county’s third-busiest air hub, under a 30-year concession.

The proposal includes future upgrades that will increase capacity given strong growth prospects for the Mindanao gateway.

As with all approved unsolicited projects, Chelsea’s offer will be subjected to a Swiss challenge, a bidding process that allows rivals to submit better offers. As an original proponent, Chelsea has the right to match a superior offer and win the project.

Chelsea is part of Uy’s Udenna Corp., a logistics, energy, education and property holding company.

It is among five business groups that have made unsolicited bids for nine existing provincial air gateways.

Uy’s Group is also bidding for the Bacolod-Silay Airport and the Busuanga Airport while Aboitiz is separately eyeing the Laguindingan Airport.

Manuel Villar Jr.’s group is seeking to operate and develop Iloilo International Airport and Puerto Princesa International Airport. Philippine Airport Ground Support Solutions Inc., controlled by businessman Jefferson Cheng, had made an offer for Siargao’s Sayak Airport while the group of Mega 7 Construction Corp., which has links to the Cusi family, had bid for Kalibo International Airport.

The DOTr is also reviewing a proposal from seven conglomerates to expand and operate Manila’s Ninoy Aquino International Airport via a 15-year concession.