Modernization of Davao International Airport inches closer to approval 

January 2, 2020

The modernization of the Davao International Airport is moving closer to being implemented after the unsolicited proposal submitted by Chelsea Logistics Holdings Corp. secured a clearance from the National Economic and Development Authority -Investment Coordination Committee (NEDA-ICC).

This was announced by the Department of Transportation on Thursday.

The P48.9 billion operate-add-transfer project aims to boost passenger traffic at the airport by up to 15.1 million passengers per annum.

The project’s phase 1 period is calendared to start this year and is set to be completed by 2028. The project has a concession period of 30 years.

The unsolicited proposal covers reconfiguration and expansion of the terminal building, construction of parallel taxiway, improvement of airside and landside facilities, installation of modern airport IT systems, and all activities needed to improve airport services.

Transportation Secretary Arthur Tugade said the modernization of the Davao International Airport will boost economic growth of the Davao Region and the rest of Mindanao through increased trade and tourisms.

The primary gateway to Mindanao, the Davao International Airport is also the third largest airport in the country after the Mactan International Airport and the Ninoy Aquino International Airport.

“Modernization of the Davao International Airport will greatly boost both trade and tourism activities across Mindanao. This is in harmony with the Build, Build, Build thrust of the administration of President Rodrigo Duterte,” said Tugade.

The green-lighting of the unsolicited proposal to modernize the Davao International Airport was also welcomed by Secretary Vince Dizon, Presidential Adviser for Flagship Programs and Projects.

“This is a very positive development as far as fast-tracking our infrastructure backlogs is concerned. This project will also speed-up the realization of the transportation roadmap as envisioned by the DOTr,”Dizon said.

Also approved by the NEDA-ICC in its December 20, 2019 meeting were the unsolicited proposals for the MRT-4 project, the upgrade of the Laguindingan Airport, the EDSA Greenways Project, and the Maritime Safety Enhancement Program (MSEP).

After hurdling the NEDA-ICC, Chelsea Logistics Holdings Corp. will then hold further discussions with the DOTr before seeking final approval from the NEDA Board which is chaired by President Rodrigo Duterte.

Should it secure approval from the NEDA Board, the unsolicited proposal will still have to undergo a Swiss challenge which will allow rival bidders to challenge Chelsea Logistics. As the project’s original proponent, Chelsea Logistics has the right to match other offers. DMS