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NEDA clears Chelsea’s offer on Davao airport

Chelsea Logistics and Infrastructure Holdings Corp. said it secured a clearance from the National Economic and Development Authority-Investment Coordination Committee to modernize the Davao International Airport.

“We thank NEDA for granting us the clearance before the year ends. Our next step is to negotiate with the Department of Transportation within the parameters set by the NEDA-ICC approved on Dec. 20, 2019,” Chelsea president and chief executive Chryss Alfonsus Damuy said.

“Once we have completed the negotiations, we shall seek a formal approval from the NEDA board chaired by President Duterte and then undergo a Swiss challenge as required under the BOT law,” he said.

The unsolicited proposal will undergo a Swiss Challenge. This means that other groups may submit counter-proposals while the original proponent has the option to match such bids.

This follows the grant of original proponent status in October 2018 and endorsements from the Davao City Chamber of Commerce and Industry Inc., Davao City Council and Davao City Development Council this year. 

The company said it would spend P49 billion for the modernization of DIA.  The project is expected to bring the economic growth of Davao Region and Mindanao to a higher level through increased trade and tourism activities.

The scope of this project includes reconfiguration and expansion of the terminal building, construction of parallel taxiway, improvement of airside and landside facilities, installation of modern airport IT systems and all activities needed to improve airport services of DIA, the primary gateway to Mindanao, and the third largest airport in the country

Chelsea Logistics also submitted an unsolicited offer to Philippine Ports Authority to develop, operate and maintain the Davao Sasa Port for P16 billion with a proposed concession period of 25 years.  

The company plans to spend P16 billion for the Davao Sasa Port in phases.  

Sasa Port is designed for break bulk cargo vessels. About 500,000 metric tons of steel, wheat, fertilizer, motor vehicles, heavy equipment and other cargo not suitable for containers went through Sasa Port in 2014, according to PPA data.

Davao Integrated Port and Stevedoring Services Corp., an operator at the Sasa port, said the current capacity of Sasa is about 700,000 twenty-foot equivalent units. 

Topics: Chelsea Logistics and Infrastructure Holdings Corp , National Economic and Development Authority , Investment Coordination Committee , Philippine Ports Authority
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