Davao City, Philippines – The Department of Transportation (DoTr) is leaning towards a solicited bidding process for the modernization and operation of Davao International Airport. This move comes after a conglomerate expressed interest in submitting an unsolicited proposal for the project, though no formal submission has been made yet.
Interest and Intent
Transportation Secretary Jaime J. Bautista revealed that while the unnamed conglomerate has shown interest in the Davao airport project, they have yet to submit a formal proposal. “They said they are interested in Davao airport, but they have not formally submitted a proposal,” Bautista stated. He emphasized the need for a formal submission within the year, as the DoTr is planning to proceed with a solicited bidding process.
Role of the Asian Development Bank
To facilitate the project, the DoTr has engaged the Asian Development Bank (ADB) as its transaction advisor. This collaboration aims to streamline the process and ensure that the terms of reference are clearly defined, which is expected to expedite the bidding process.
Advantages of the Solicited Route
Secretary Bautista highlighted the benefits of a solicited bidding process, citing the recent experience with the Ninoy Aquino International Airport (NAIA) upgrade. The NAIA project, which followed a solicited route, progressed rapidly from submission to investment coordination committee approval and concession signing. “Look at our experience with NAIA, it is fast. If we take the solicited route, it will only take a year,” Bautista noted.
Recent Developments
On September 14, the San Miguel-led New NAIA Infrastructure Corp. officially took over the operations and maintenance of the Philippines’ main gateway, marking a significant milestone in the country’s public-private partnership (PPP) initiatives.
PPP Center’s Decision
In June, the PPP Center delisted the unsolicited proposal for the development, operations, and management of Davao International Airport. This action likely signals the DoTr’s intent to pursue a solicited bidding process for the project, aligning with its strategy to ensure a transparent and efficient modernization effort.
Looking Ahead
The modernization of Davao International Airport is a critical infrastructure project aimed at enhancing the airport’s capacity and services to meet growing demand. The shift towards a solicited bidding process is expected to attract competitive bids and ensure that the project is completed efficiently and effectively.
As the DoTr moves forward with its plans, stakeholders and the public will be closely monitoring the developments, anticipating improvements that will bolster Davao City’s connectivity and economic growth.
