Philippines to launch airport 'hybrid' PPP

Philippines to launch airport 'hybrid' PPP

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The Government of the Philippines is to tender an airport as its hybrid strategy gets underway.

The Bases Conversion and Development Authority (BCDA) is set to bid out the construction of the new terminal building of Clark International Airport in the next few weeks.

The new Clark airport terminal will be BCDA’s first big ticket project to be tendered by the Duterte administration, where the government builds it and then the private sector will maintain and operate it

The PHP12.55 billion (US$248 million) project will expand Clark airport terminal by 82,600 square meters to accommodate eight million passengers annually. The project will be fully funded by the BCDA.

Clark Airport is currently operated by the Clark International Airport Corporation (CIAC), under the strategic oversight of the Department of Transportation (DOTr), and regulated by the Civil Aviation Authority of the Philippines (CAAP), an agency also attached to the DOTr.

Clark Airport serves both international and domestic flights. Its expansion is intended to accommodate the growth in its organic catchment area and part of the air traffic flying to the Greater Capital Region (Metro Manila, Central Luzon, Cavite, Laguna, Batangas, Rizal, and Quezon) and could position Clark Airport as:

  • The dual airport partner to the Ninoy Aquino International Airport (NAIA)
  • The country’s future premiere gateway replacing NAIA
  • A growing domestic regional airport,
  • A low-cost carrier hub for the Philippines

Before the Duterte administration, Clark airport only had seven domestic and 100 international flights weekly. Clark airport now has 120 domestic and 138 international flights per week.

The government targets to complete the construction of the new terminal building by 2019.

This hybrid model will result to lower airport charges to passengers as the infrastructure is funded by the government, while the government has also percentage in the earnings of the private sector from the airport operation.

Recently, we have also reported in the country that the Government cancelled the procurement of the much-anticipated Regional Airport PPP Projects. The project involved the development, operations and maintenance of five unbundled airports projects, which are namely Bacolod-Silay, Davao, Iloilo, Laguindingan, and New Bohol (Panglao). The government, through the implementing agencies, the DOTr and CAAP, decided that the projects would be implemented through other modes. 

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