-
The Subic Bay Metropolitan Authority opened the unsolicited proposal to transform Subic Bay International Airport into a strategic air freight and logistics hub to challengers
-
A pre-bid conference is scheduled on September 14 while the submission of comparative proposals and opening will be on October 29
-
Prospective bidders will be challenging the proposal submitted on March 26, 2025 by Cerberus Asia Pacific Investments LLC
-
The project is seen to enable SBMA to develop SBIA as alternative cargo hub to congested Ninoy Aquino International Airport
The Subic Bay Metropolitan Authority (SBMA) has opened the unsolicited proposal to transform Subic Bay International Airport (SBIA) into a strategic air freight and logistics hub to challengers.
In an instruction to bidders issued on July 31, SBMA opened the comparative challenge process under an operate-rehabilitate-add-transfer scheme in accordance with Republic Act No. 11966 or the PPP Code of the Philippines.
A pre-bid conference is scheduled on September 14 while the submission of comparative proposals and opening of such submissions will be on October 29, 2026.
Prospective bidders will be challenging the 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.
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. The original proponent’s estimated project cost is P7 billion for the construction, renovation and/or rehabilitation.
In an invitation dated April 27, SBMA said the SBIA project includes the upgrade, expansion, operation and maintenance for a concession period of 25 years, subject to extension.
READ: SBMA calls for challenge bids to Subic airport project
According to the recently released project information memorandum (PIM), the SBIA project involves capital investment to upgrade airport facilities to comply with International Civil Aviation Organization standards and other internationally accepted benchmarks.
The development of existing and new facilities will transform SBIA into a higher-capacity logistics hub, strengthening its role in national infrastructure modernization and supporting economic growth while reinforcing its strategic relevance.
Alternative to congested NAIA
The project will also enable SBMA to develop SBIA as an alternative cargo hub to congested Ninoy Aquino International Airport.
The PIM noted that according to Boeing’s World Air Cargo Forecast 2024, the Philippines is among Southeast Asia’s key growth markets, with regional air cargo demand projected to increase by more than 15% annually through 2030. This outlook is supported by the continued expansion of e-commerce, with Statista projecting the Philippines’ e-commerce market to grow by approximately 9–10% annually between 2025 and 2029, further driving demand for logistics and freight services.
However, the Subic Bay Airport Feasibility Study: Air Cargo Market Study revealed that due to congestion and limited capacity of airports in the Philippines, there has not been a full recovery in domestic cargo volumes. According to forecasts, it is projected that there will be a supply gap for air cargo of 200,000 tonnes by 2027.
READ: Manila’s Cargo Crisis: Capacity Crunch at the Airport
The PIM noted that Subic Bay Freeport is strategically situated in the Central Luzon region of the Philippines, serving as a vital link to global trade and positioned at the center of Asia’s fastest-growing e-commerce market.
SBIA’s location and dual air-to-sea access (through the port of Subic) present a significant, unique opportunity to develop it into a key logistics hub for commercial cargo and warehousing. This highlights a growing demand for air cargo services, driven by the need for industrial supplies and the transportation of finished products. Additionally, Luzon Corridor’s trilateral economic partnership with the US and Japan is expected to further drive economic growth, trade, and infrastructure development.
Currently underutilized, the PIM said SBIA requires substantial investment and comprehensive operational improvements to realize its full potential over the concession period.
The concessionaire will be responsible for both landside and airside operations of SBIA and will undertake works to enhance safety, security, compliance, and operational efficiency, as well as optimize airport performance.
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. — Roumina Pablo
