Gov’t sets bidding for Clark Airport O&M

The government is set to start the bidding of the operations and maintenance (O&M) of the Clark International Airport by publishing the notice next month, according to Transport Secretary Arthur Tugade.

“We have approved the parameters and guidelines for O&M. So, we will publish, then start bidding of O&M,” Tugade said on the sidelines of the joint meeting of the Philippines-Japan Economic Coordinating Committee and the Japan-Philippines Economic Coordinating Committee.

He said the notice would be published in March.

Asked if the unsolicited proposal submitted by FDC, JG Summit and Changi has been rejected, Tugade said the proposal would not be pursued since the government is conducting a bidding for the O&M.

The government has rejected the proposal submitted by Filinvest Development Corp. (FDC), JG Summit Holdings Inc. and Changi Airports International which involves investing P839 billion for the long term development of the airport.

Under the proposal, the consortium would augment the capacity of the airport, expand the facilities including terminals and runways, as well as operate and maintain the existing and new passenger terminals.

The consortium also intends to develop, operate and maintain the commercial assets of the Clark International Airport, which include facilities for general aviation and fixed-base operations and real estate.

FDC and JG Summit submitted a P187 billion proposal for the development of Clark International Airport.

The P187 billion proposal was also rejected by the government as it decided to pursue the development of the Clark Airport using the hybrid public-private partnership (PPP) approach.

Under a hybrid PPP model, the government would use its funds to build the infrastructure project and later bid out the O&M to the private sector.

The Clark International Airport’s expansion is the first hybrid project under the current administration’s Build Build Build program.

Last December, the consortium of Megawide Construction Corp. and GMR Infrastructure Ltd. of India bagged the construction contract for the new terminal building of the Clark International Airport.

Under the project, the Clark International Airport would be able to accommodate more passengers through the new 101,977-square meter terminal.

In particular, the new terminal would increase Clark Airport’s capacity to 12 million passengers per annum by 2020 from four million at present.

The project is also expected to reduce strain on the congested Ninoy Aquino International Airport (NAIA), as well as create jobs and promote development in Central Luzon.

Last year, the NAIA which has an annual capacity of 30 million passengers, handled more than 40 million passengers.