Philippines Awarded ₱3.6 Billion Puerto Princesa Modern Airport project to Kumho Asiana Korean firm

Palawan Philippines Photo:thephilippines.com

 

THE Department of Transportation and Communications (DOTC) has awarded a $82.9-million design-and-build contract for the Puerto Princesa airport to Korea's Kumho Industrial Co. Ltd.-GS Engineering & Construction Joint Venture (Kumho-GS), an official said Tuesday.

 

The eco-tourism showcase that is Puerto Princesa, as well as the rest of Palawan, will soon have a modern, world-class airport which we can be as proud of as the destination itself, said Transportation and Communication Secretary Joseph Emilio Abaya.

 

"With beaches and other natural wonders attracting throngs of visitors from all over the globe, it will finally have a gateway that is befitting of its stature," he said.

 

In compliance with its Engineering, Procurement, and Construction (EPC) contract, Kumho-GS will begin with the design component by the third quarter of this year. While the joint venture is preparing the airport’s detailed engineering design, it will likewise begin mobilizing its equipment and securing various project permits.

 

Civil works at the existing site, or the build component, will begin in the fourth quarter of 2014. The project scope includes the construction of a new passenger terminal building, cargo terminal building, apron, connecting taxiways, a new air navigation system, and other support facilities.

 

Kumho-GS will have around 30 months to complete the project, which means that the DOTC expects the modern airport to be operational by first quarter of 2017.

 

Once the project is completed, the airport will have an annual capacity of about two million passengers. In 2013, it counted 1.335 million passengers, which is way beyond its passenger terminal building’s (PTB) current estimated capacity of only 350,000 passengers per annum.

 

“Apart from boosting our tourism sector, this project will also generate jobs, particularly in the infrastructure sector. Overall, the estimate is up to 1,400 total new jobs during construction alone,” Abaya added.

 

The project is largely funded through a Korean Export Import Bank (KEXIM) loan, to the tune of $71.612 million. The loan is payable in 40 years, inclusive of a ten-and-a-half-year grace period, at a concessional interest rate of 0.1% per annum.

 

As a tied official development assistance (ODA) loan, the bidding process was governed by the Guidelines for Procurement of Korea’s Economic Development Cooperation Fund (EDCF), and decisions were concurred with by KEXIM. Bidding for the project was also limited to South Korean firms.  (SDR/Sunnex)

 

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SMC proposes $10 Billion USD 1,600 Hectares World's Biggest Airport to rise at Manila Bay Philippines

NEW INTERNATIONAL GATEWAY Here is an artist’s rendition of San Miguel Corp.’s proposal of what could be the country’s largest and most modern airport—a $10-billion air terminal on reclaimed land on Manila Bay. SanMiguel Corp./CONTRIBUTED PHOTO

The Department of Transportation and Communications (DOTC) is considering the proposal of San Miguel Corp. (SMC) to put up a $10-billion  international air gateway at a reclamation project in Manila Bay.

 

Michael Sagcal, Transportation department spokesman, said the agency was “very open” to the SMC proposal to establish the airport in the bay area covering the cities of Parañaque and Las Piñas.

 

“We invite SMC to make a more formal presentation and to submit a proposal to us,” Sagcal said in an interview, adding that the massive airport project was presented to Malacañang on Wednesday.

 

Transportation Secretary Joseph Abaya was present when SMC president Ramon Ang unveiled the airport plans to President Aquino. The project of SMC, which is part owner of flag carrier Philippine Airlines, would be located at CyberBay Corp.’s disputed waterfront reclamation project in Manila Bay, Sagcal said.

 

San Miguel, which owns a stake in flag carrier Philippine Airlines, told the Philippine Stock Exchange in a disclosure that reports of its bid to build the four-runway hub in Manila Bay were “accurate.”

 

It was not immediately clear how SMC’s airport project—an unsolicited proposal—would pan out since the DOTC earlier enlisted the help of the Japan International Cooperation Agency to identify a second gateway to the country.

 

Also, the Aquino administration maintains a stance against unsolicited proposals, stating on several occasions that it prefers an open bid process.

 

But Abaya said in a text message on Thursday that an unsolicited proposal “isn’t illegal or prohibited, but again, the bias is toward solicited open and transparent bidding, which SMC is open to.”

 

Abaya said in March that JICA had identified the former US naval base in Sangley Point, Cavite, south of Metro Manila, as an ideal location.

 

“If SMC’s proposal turns out to be viable, we will consider it alongside JICA’s recommendations,” Sagcal said.

 

Airlines are frustrated with heavy congestion and other woes at Manila’s existing international airport, which has been named the worst in the world for two years running by an online travel guide.

 

The airport was hit by air conditioning failures in sweltering weather last month, just as millions of Filipinos began traveling for the Easter holidays—forcing Aquino to make a public apology.

 

The airport was built in 1981 to service six million passengers a year, but its terminals handled more than 32 million in 2012, according to the airport authority.

 

Philippine Airlines and other carriers routinely suffer flight delays as Manila and other airports across the country struggle to handle surging traffic.

 

Manila’s Terminal 1 was named the worst in the world for the second year running in 2013 by travel website “The Guide to Sleeping in Airports”.

 

Travelers criticized its “dilapidated facilities,” airport workers—particularly taxi drivers—long waiting times and rude officials.—Inquirer With a report from Agence France-Presse

 

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