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The Subic Bay Metropolitan Authority calls for challenge bids to the unsolicited proposal to transform Subic Bay International Airport into a cargo hub
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The unsolicited proposal was submitted on March 26, 2025 by Cerberus Asia Pacific Investments LLC
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The SBIA project includes the upgrade, expansion, operation and maintenance for a concession period of 25 years, subject to extension
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The comparative challenge will be a single-stage process, right-to-match mechanism
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Submission of comparative proposals must be completed on or before August 17, 2026, the same day of the opening of bids
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The project primarily aims to establish an efficient and modern cargo transport system for Luzon by transforming SBIA into a modern, efficient, and high-capacity cargo hub that meets international standards and improves cargo shipment quality
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The SBIA in the former American military base is mainly used for military and chartered flights
The Subic Bay Metropolitan Authority (SBMA) has called for challenge bids to the unsolicited proposal to transform Subic Bay International Airport (SBIA) into a cargo hub.
Bidders will be challenging the unsolicited proposal submitted on March 26, 2025 by Cerberus Asia Pacific Investments LLC.
Cerberus Asia Pacific is under US-based private equity firm Cerberus Global Investment LLC. Together with Agila NY Naval Inc./Agila South Inc., they acquired in 2022 the 300-hectare area in Subic Bay Freeport that was once occupied by South Korean shipbuilder Hanjin Heavy Industries and Construction-Philippines, Inc.
READ: Cerberus, Hyundai formalize lease on Subic shipbuilding facility
Malacañang earlier said Cerberus Global plans more investments in the Philippines, including the conversion of SBIA as a cargo and logistics hub.
READ: Marcos inaugurates HD Korea, Hyundai Subic shipyard
Following the successful detailed evaluation and negotiations between SBMA and Cerberus Asia, the latter has been granted original proponent status for the project, hence the start of the comparative challenge.
In an invitation dated April 27, SBMA said the project will be under an operate-rehabilitate-add-transfer scheme in accordance with Republic Act No. 11966 or the Public-Private Partnership Code of the Philippines (PPP Code) and its implementing rules.
The SBIA project includes the upgrade, expansion, operation and maintenance for a concession period of 25 years, subject to extension.
The project primarily aims to establish an efficient and modern cargo transport system for Luzon by transforming SBIA into a modern, efficient, and high-capacity cargo hub that meets international standards and improves cargo shipment quality.
The comparative challenge will be a single-stage bidding process, where each challenger will submit a comparative proposal consisting of qualification documents, a technical proposal, and a financial proposal.
Challengers who will meet all qualification requirements will be allowed to participate in the opening of the technical proposals, and those whose technical proposals are deemed compliant will be able to participate in the opening of the financial proposal.
The challenger that submitted the financial proposal that meets the highest base concession fee in contract year one will be declared as the challenger with the most superior comparative proposal.
The comparative challenge will be conducted under a right-to-match mechanism, in which the original proponent will be given the right to match or better the financial proposal of the most superior comparative proposal.
In case the SBMA Pre-Qualification/Qualification, Bids and Awards Committee determines the financial proposal of the original proponent to be superior or more advantageous to the government or in case there is no challenger, the PPP contract will be awarded to the original proponent.
The submission of comparative proposals must be completed on or before August 17, 2026, the same day of the opening of bids.
SBIA since its inception has handled only chartered and military flights, but SBMA had earlier said the facility is ready to accommodate commercial flights and can also be used as a logistics hub and aircraft maintenance, repair, and overhaul operations. SBIA also handled Philippine Airlines’ 82 repatriation flights during the COVID pandemic with more than 20,000 passengers from July 2021 to February 2022.— Roumina Pablo
READ: Subic Bay Freeport Zone to host P4.135B logistics, transport hub
