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The Department of Transportation and the World Bank-International Finance Corporation signed on October 10 an advisory agreement for the rehabilitation and modernization of the Davao International Airport
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Transport Secretary Jaime Bautista said the PPP process for the Davao International Airport is expected to be completed in 13 months
The Department of Transportation (DOTr) and World Bank-International Finance Corporation (IFC) signed on October 10 the transaction advisory service agreement (TASA), a step in the modernization of Mindanao airports, including Davao International.
“This agreement will formulate the best way to rehabilitate, expand, operate and maintain the Davao International Airport and other regional airports,” according to Transport Secretary Jaime Bautista.
Thomas Lubeck, regional manager for IFC’s PPP (public-private partnership) Transaction Advisory Services-South Asia and East Asia Pacific, said the IFC’s role “is to support the DOTr in bringing in private sector expertise, technology, and management to enhance airport services for the people of Davao and the entire Mindanao region.”
He added, “With improved efficiency and connectivity, we hope this airport will further accelerate the region’s growth.”
Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno, who witnessed the signing, hailed the agreement as a significant step for the region.
“We at MinDA are proud to be part of this pivotal occasion. The ultimate goal is to bring Davao International Airport’s facilities to a level that reflects the aspirations we have long held for Mindanao,” said Magno, emphasizing how the modernization will strengthen the airport’s role in boosting tourism and improving international market access.
Davao International Airport Authority manager Engr. Rex Obcena noted the facility is vital to the region’s economy, and its modernization embodies the hopes of both Dabawenyos and Mindanawons.
Bautista said they expect to complete the PPP process for the airport in 13 months. This compares with the 12 months it took to finish the PPP process for the Ninoy Aquino International Airport, so far the fastest solicited PPP by government.
Bautista earlier said DOTr next year is set to launch the competitive tender for the Davao International Airport solicited PPP project.
He said they are planning to go the solicited route following rejection in May of the unsolicited proposal submitted by Chelsea Logistics and Infrastructure Holdings Corp. Bautista said the proposal “lacked information.”
The Davao International Airport project is part of a broader initiative that includes the development of other regional airports under the solicited PPP scheme, Bautista said.
He earlier said DOTr is working closely with IFC and Asian Development Bank for more PPP projects next year, including the Busuanga, Bacolod, Bicol, and General Santos airports, among others.
Last month DOTr awarded the P12.748 billion contract for the upgrade, expansion, operation and maintenance of Laguindingan International Airport to Aboitiz InfraCapital, Inc.
READ: Aboitiz wins P12.75-B Laguindingan airport contract
Next year, DOTr expects to award three other airport PPP projects, namely the Iloilo, Kalibo, and Puerto Princesa airports.
DOTr has allocated P3.2 billion next year for the development of 17 airports nationwide.
In another development, DOTr and MinDa on Oct 11 signed a memorandum of cooperation for infrastructure projects in the region.
The MOC intends to facilitate joint planning and programming that will address the infrastructure needs of the stakeholders in southern region.
The cooperation also aims to provide joint project support for timely implementation of transport projects in Mindanao.
