Bidding for Clark airport O&M a landmark accomplishment for PH gov’t

The success of the bidding for the Clark International Airport operations and maintenance (O&M) contract shows the seriousness of the Duterte administration to “Build, Build, Build.”

The Bases Conversion and Development Authority (BCDA) in partnership with the Department of Transportation (DOTr) recently awarded the O&M contract to the four-member North Luzon Airport Consortium (NLAC), which includes Changi Airport Group, the operator of the number one airport in the world, Singapore Changi Airport.

The successful selection process proves that government is committed to providing our citizens with world-class, efficient and comfortable infrastructure, as envisioned under the President’s Build Build Build program.

The Clark airport expansion project was done in record time, within the first two years of President Duterte’s term—a major accomplishment considering that development plans for the airport were neglected for years. 

The BCDA Special Bids and Awards Committee for the O&M contract conducted a stringent and very transparent bidding process, which was guided by the International Finance Corporation of the World Bank (IFC-WB) as its transaction adviser, and the Public-Private Partnership Center (PPPC).

In a year-end press conference held by the PPP Center last December 20, Executive Director Ferdinand Pecson said that the bidding process for the Clark airport O&M contract was aboveboard and no group was favorably chosen over another.

The Clark International Airport is the first project being implemented using the hybrid PPP mode to fast-track infrastructure development under the Build Build Build program.

The concession agreement for the O&M contract has also been cleared by the Office of the Government Corporate Counsel and the Department of Finance (DOF), and is seen to protect not only the interest of the present government, but also future governments from undue and contingent risks and liabilities. 

Finance Secretary Carlos Dominguez said in an earlier statement that DOF had meticulously scrutinized the concession agreements for the Clark airport to ensure the government would not incur unwarranted contingent liabilities, like what happened to the Mactan-Cebu airport contract.

“If you compare the guarantees that were given to the Cebu contract comparing to what we have for the Clark and the Bulacan, you will see the big difference from before,” Dominguez said. “We’re going to get those, the contract in Clark, and the contract for the Bulacan airport with no government liability at all,” he added.

Meanwhile, citing the key features of the Bulacan airport concession agreement, Socioeconomic Planning Secretary Ernesto Pernia added that these projects “certainly raise the bar on PPP projects.”

NLAC’s financial bid offer of 18.25% annual gross revenue percentage share is almost twice the minimum rate set at 10% as approved by the NEDA Board. The bid offer, according to the PPPC, is more than 80 percent better than the minimum rate set.

The other three members of NLAC are Filinvest Development Corporation, JG Summit Holdings, Inc. and Philippine Airport Ground Support Solutions, Inc. Each consortium member has a vast experience in property development, air transportation and airport operations, especially Changi Airports Philippines Pte. Ltd., which is 100%-owned by Changi Airports International Pte. Ltd.

Singapore Changi Airport was ranked first in Skytrax’s top 100 airports for 2018, and was voted as one of the best airports in the world for six consecutive years. (BCDA).

Source: Philippines Information Agency

Mexican defense ministry to remain owner of Santa Lucía airport site – AMLO

Mexico’s defense ministry (Sedena) will remain the owner of the site of the Santa Lucía military air base, which is set to be turned into an international airport under a plan to develop a larger airport system for Mexico City.

At his daily press conference on Friday, AMLO (pictured) noted that the fact that Sedena engineers will be tasked with building the infrastructure for the international airport because it is the owner.

The president also said that the transport and communications ministry (SCT) will reach an agreement with Sedena regarding the future collection of airport charges (TUA) at Santa Lucía.

AMLO was directly responding to a report by local daily Reforma, which states that federal auditor ASF has repeatedly questioned the participation of Sedena in non-military public works.

According to the paper, some ASF reports have noted that Sedena lacks the powers to sign agreements for the construction, maintenance and demolition of works carried out in non-military locations.

Based on article 29 of the law of the federal public administration, which provides the basis for the administration of Mexico’s federal government, Sedena is allowed to «build and prepare fortifications, fortresses and all kind of military facilities for the use of the army and the air force, as well as the administration and conservation of military bases, hospitals and relevant facilities.»

The defense ministry is also allowed to «provide military advice for the construction of all kinds of road and air transport infrastructure.»

SANTA LUCIA

Last week, AMLO confirmed that the Mexican army will be responsible for the construction of all the infrastructure needed to turn the Santa Lucía air base into an international airport, including two additional runways and the terminal building.

Authorities are reportedly only awaiting the completion of a report commissioned from foreign firms, which will serve to define the exact locations of the runways.

The architectural model that was used in the construction of a second terminal at AICM, which was opened in 2007, will also be used at Santa Lucía in order to reduce construction costs, according to AMLO.

The spending budget proposal for 2019 that the finance ministry (SHCP) submitted to congress, and which was approved earlier this week, earmarked 15bn pesos (US$764mn) to Sedena for the modernization and rehabilitation of airport infrastructure. These funds will be used for the works at Santa Lucía, authorities have confirmed.

Source: BNAmericas

All VIA projects except new terminal to be finished in 2019: MACL

Maldives Airports Limited (MACL) on Saturday announced that all of the development projects undertaken at Velana International Airport will be completed in 2019, with the exception of the new international terminal.

According to MACL’s acting Managing Director Moosa Solih, the construction of the new terminal was delayed due to financial difficulties. Nevertheless, he stated that the financial situation has been sorted out, and therefore the new terminal is now expected be completed in 2022.

“The [new terminal] project was financed by four parties, although minor financial issues within them caused the delay in funding,” said Moosa Solih.

Once completed, VIA’s international terminal can cater to seven million passengers. The USD 350 million project was awarded to Saudi Binladin Group. Previously, the new terminal was scheduled to be finished in 2019 along with the rest of the projects.

The development projects to be finished next year included a fire fighting unit, harbour and fuel farm.

Solih, however, said that VIA’s new runway can be used although the new terminal has not been completed.

“God Willing, we’re hoping that a part of the runway can be opened around March next year,” said Solih.

The mega development and expansion project of Velana International Airport, with a cost of around MVR 1 billion, was initiated by the administration of former President Abdul Yameen Abdul Gayoom. MACL stated that the project will continue according to plan despite the transfer of power following the presidential election in September.

Source: The Edition. Maldives

Kerala government can bid for Thiruvananthapuram airport, says Jayant Sinha

The Kerala government can bid for operating and managing the Thiruvananthapuram airport at the time of leasing out the aerodrome, the Civil Aviation Ministry said Thursday.

The Centre’s decision to lease out the Thiruvananthapuram airport on public private partnership basis has been opposed by the Kerala government.

In November, the central government approved leasing out six airports for operation, management and development under public private partnership. These are Airports Authority of India (AAI) aerodromes at Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru.

Minister of State for Civil Aviation Jayant Sinha told the Lok Sabha that the Kerala government can be a bidder for the Thiruvananthapuram airport.

To a query on whether the Kerala government has requested the Centre to re-consider the decision and allow forming a Special Purpose Vehicle (SPV) to run the airport, Sinha replied in the affirmative.

«In response to the same, the government has offered State Government of Kerala to be one of the bidders,» the minister said.

Earlier this month, Kerala Chief Minister Pinarayi Vijayan appealed to the Centre not to lease out the Thiruvananthapuram airport and requested it to entrust the aerodrome’s management with the state government.

The six airports are to be leased out through the Public Private Partnership Appraisal Committee (PPPAC).

«An Empowered Group of Secretaries (EGoS) has been constituted under the chairmanship of CEO, NITI Aayog to decide on any issue falling beyond the scope of PPPAC,» Sinha said in the written reply. 
 

Source: ZeeBusiness