Government will start finding another bidder to challenge the ₱21.64-billion proposal of the Gokongwei and Gotianun families to upgrade the airports of Davao, Bicol and Siargao, according to the Public-Private Partnership (PPP) Center.
PPP Center Executive Director Rizza Blanco-Latorre said the unsolicited proposal of the Philippine Regional Airports Consortium for the three airports is now awaiting approval from the Cabinet-level interagency Investment Coordination Committee (ICC).
This follows the submission by the Civil Aviation Authority of the Philippines (CAAP) and Davao International Airport Authority (DIAA) of the project for completeness check last Sept. 1, three months after the issuance of an original proponent status (OPS) to the consortium.
Through the OPS, the consortium has the right to match the best offer from other companies that are interested in developing what would become the country’s first multi-airport PPP deal.
Blanco-Latorre said the comparative challenge process (also known as a Swiss challenge) would commence once the unsolicited proposal secures the ICC’s approval.
The PPP Center chief said the ICC may begin its review of the proposal by next month, putting the schedule of the Swiss challenge within the first quarter of 2027.
The consortium seeking to upgrade the three airports is made up of the Gokongwei group’s JG Summit Infrastructure Holdings Corp. and the Gotianun family’s Filinvest Infra-Solutions Ventures Inc., alongside Asian Infrastructure and Management Corp.
According to the PPP Center, the consortium plans to increase the runway, cargo and passenger handling capacities of the airports in a bid to make flying to these gateways more convenient.
The group plans to operate and maintain Davao International Airport and Bicol International Airport over a 30-year concession period, while Sayak Airport in Siargao Island will be operated and maintained for a shorter period of 15 years.
First phase of Davao airport’s upgrade involves the expansion of the passenger and cargo terminals, followed by widening the airport’s capacity in the second phase.
Target for Bicol is renovating the international area of the passenger terminal building to enable swing operations before eventually moving on to capacity-enhancing improvements.
Lastly, the consortium is keen on managing Siargao to make it compliant with the optimum service standards set by the International Air Transport Association (IATA).
Once the government moves to award the project to a proponent, Blanco-Latorre said this may be the final PPP deal in the aviation sector that comes from an unsolicited proposal.
