BUSINESSMAN Dennis A. Uy’s Chelsea Logistics Holdings Corp. (CLC) has been given original proponent status (OPS) by the government for its P49 billion proposal to operate and expand the Davao International Airport.
In a statement, the Department of Transportation (DoTr) said the Civil Aviation Authority of the Philippines (CAAP) on Friday granted OPS to Chelsea Logistics for its Davao airport proposal, and Mega 7 Construction Corporation for its P3.8 billion proposal to upgrade the Kalibo International Airport.
“The (CAAP) Board is currently meeting with the proponents to facilitate completion of requirements by the National Economic Development Authority (NEDA), who will still evaluate the proposals for approval,” the DoTr said.
CLC last May 28 submitted its unsolicited proposal to operate, maintain and expand the Davao International Airport.
Mega 7, on the other hand, sent its unsolicited proposal for the operations, maintenance and upgrade of the Kalibo International Airport last Aug. 6.
The proposals of CLC and Mega 7 both include the expansion of passenger terminal buildings at the Davao and Kalibo airports, respectively. Both firms proposed a concession period of 30 years.
The DoTr and CAAP did not have any objections to the two airport proposals.
Once the proposals are given the go signal by the NEDA Investment Coordination Committee, they will be endorsed to the NEDA Board, led by President Rodrigo R. Duterte, for final approval.
As unsolicited proposals, the two airport projects will have to undergo a Swiss challenge, where other companies can make competing offers, while giving the original proponent the right to match them.
Prior to its proposal for the Davao airport, CLC first submitted a P67 billion proposal to develop, operate and maintain both the Davao airport and New Bohol (Panglao) International Airport. The DoTr did not want a bundled proposal, prompting CLC to focus on solely on the Davao airport.
Mega 7 was first rejected by DoTr, after it discovered the company is 90% owned by Digichive Philippines Corp. which is primarily engaged in marketing and advertising, and 10% is owned by Dominion Intertrade Corp., which is engaged in general wholesale merchandise.
“The proponent does not exhibit sufficient experience in airport development, operations, and maintenance,” the DoTr earlier said.
Shares in CLC rose by 20 centavos or 3.53% to close at P5.87 each on Tuesday. — Reicelene Joy C. Ignacio

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