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Bacolod-Silay Airport Davao, Iloilo, Laguindingan, Bacolod-Silay and New Bohol (Panglao) AIRPORTS DEVELOPMENT, OPERATIONS AND MAINTENANCE PROJECTS ___________________________ Pre-Qualification Conference 13 March 2017 1 Outline of Presentation Development Objective Background of Airports Project Description & Scope Bidding Process Instructions to Prospective Bidders Way Forward 2 Airport Projects Development Objective To improve services at the respective key regional airports including required enhancement of airside and landside facilities at the respective airports by granting concessions to private sector proponents. 3 Location- Airports Iloilo Airport Estimated Cost: New Bohol PHP 30.4 Bn Airport Passenger Traffic (2016): Estimated Cost: ~1.94 Mn PHP 4.57 Bn Passenger Traffic (Tagbilaran) : 0.9 Mn Bacolod-Silay Airport Estimated Cost: Davao Airport PHP 20.26 Bn Estimated Cost: Passenger Traffic (2016): PHP 40.57 Bn ~1.53 Mn Passenger Traffic (2016): ~3.55 Mn Laguindingan Airport Estimated Cost: PHP 14.62 Bn Passenger Traffic (2016): ~1.80 Mn 4 Davao International Airport Davao airport is located in Catitipan, Barangay Buhangin, Davao City. The Davao airport has been operational for more than 15 years In terms of passenger traffic throughput, it is the third largest Passenger Traffic airport in the Philippines ~3.55 (2016) in Mn CAGR for the period 2007-16 ~9.78% It provides both domestic and international connectivity Cargo Traffic (2016) in MTs 53,659 CAGR for the period 2007-16 ~1.84% 5 Iloilo International Airport Iloilo International airport is located in Cabatuan, Province of Iloilo (Western Visayas region) It commenced operations in 2007 and is one of the recently completed airports in Philippines with modern facilities Passenger Traffic ~1.94 In terms of passenger traffic (2016) in Mn throughput, it is the fifth largest airport in the Philippines CAGR for the period 2007-16 ~7.62% Cargo Traffic (2016) in MTs 13,339 It provides both domestic and CAGR for the period 2007-16 ~3.13% international connectivity) 6 Laguindingan International Airport Laguindingan International airport is located on the northern tip of Misamis Oriental and is approximately 45 kilometers from Cagayan de Oro city and approximately 65 kilometers from Iligan city It commenced operations in June 2013 replacing the old Lumbia Airport Passenger Traffic ~1.80 It is the sixth largest airport in the (2016) in Mn Philippines in terms of passenger traffic CAGR for the period 2007-16 ~9.72% handled Cargo Traffic (2016) in MTs 20,486 CAGR for the period 2007-16 ~5.73% 7 Bacolod-Silay Airport Bacolod Airport is located in Silay City, Negros Occidental (Western Visayas region) It commenced operations in 2008 and is one of the recently completed airports in Philippines with modern facilities Passenger Traffic ~1.53 In terms of passenger traffic (2016) in Mn throughput, it is the eighth largest CAGR for the period 2007-16 ~7.75% airport in the Philippines Cargo Traffic (2016) in MTs 16,534 CAGR for the period 2007-16 ~8.24% 8 New Bohol International Airport New Bohol airport is to be located in Panglao Island and shall replace the existing Tagbilaran Airport Tagbilaran airport is an important airport in the Philippines with largely tourist–driven traffic The airport is expected to have a Passenger Traffic (2016) in Mn ~0.9 design capacity of ~1.958 million (for existing Tagbilaran Airport) passengers CAGR for 2007-16 ~10.88% Terminal Design Capacity in 1.958 Mn Cargo Traffic (2016) in MTs 4,138 9 Existing Facilities at the Airports Laguinding Bacolod- Davao Iloilo New Bohol an Silay Total Area 217 188 354 187 220 (hectares) Terminal Floor Area 22,683 13,700 7,184 6,187 13,337 (sq.m.) 3000 m 2500 m 2002 m 2500 m Runway 2100 m x 45m x 45m x 45m x 45m x 45m Apron Area 74,250 48,210 46,150 25,300 49,335 (sqm) 10 Project Description: Scope of Work (1/3) 1. Taking-over the operations and maintenance of the existing facilities (newly built facilities in the case of the New Bohol Airport Project) from CAAP, excluding, in the case of the Davao Airport Project, the old passenger terminal, and except as otherwise provided in the Bidding Documents. 2. Enhancement/development of landside facilities, including passenger and cargo terminal(s), along with all associated infrastructures and facilities 3. Enhancement/development of airside facilities to meet the enhanced scale of operations of the airports 4. Installation of all required equipment and associated facilities 11 Project Description: Scope of Work (2/3) 5. Provision of required works with respect to the existing terminals (either facilities already in operation, as in the case of the Davao, Iloilo, Laguindingan Airport and Bacolod-Silay, Projects, or newly-constructed facilities, as in the case of the New Bohol (Panglao) Airport Project), along with all associated infrastructure and facilities, necessary to handle operations until the expansion of the existing terminals and/or the development of new passenger terminal(s). 6. Operations and maintenance of landside facilities (including, among others, the passenger terminals) and associated airside facilities (including, among others, the apron, runway and taxiway), during the entire concession period 12 Project Description: Activities not included in Scope of Work* (3/3) Activities / Responsibilities of CAAP / DOTC: 1. Air Traffic Control (“ATC”) Services 2. Air Navigation Services (“ANS”) 3. Provision and operations of ATC and ANS facilities 4. Necessary upgrade and maintenance of ATC and ANS facilities 5. Existing CAAP administration building 6. Existing CAAP staff houses Further, the following services are not included in the scope of the Projects and would continue to be provided by the relevant agencies at the airports: 1. Customs 2. Immigration 3. Security 4. Quarantine 5. Services provided by the Philippine Overseas Employment Administration (POEA) and the Overseas Workers Welfare Administration (OWWA) 6. Other services currently being provided by other Philippine government agencies 13 Project Description: Contractual Framework Republic Act No. 6957, as amended by Republic Act No. Legal Framework 7718 ("BOT Law”), and its 2012 Revised Implementing Rules and Regulations (“Revised IRR”) PPP Structure Operate-Add-Transfer (“OAT”) Implementing Department of Transportation and Agencies Civil Aviation Authority of the Philippines 30 years in the case of the Davao, Iloilo, Laguindingan and Bacolod-Silay Airport Projects Concession Period 35 years in the case of the New Bohol (Panglao) Airport Project Right of Way and Government will grant appropriate rights to project site Possession of and relevant existing assets Airport Land 14 Bidding Process(1/2) Competitive bidding: two-stage bidding process Instructions to Prospective Bidders (ITPB) for Pre-Qualification of Prospective Bidders for each Airport Project issued through the current process Evaluation of Pre-Qualification applications and announcement of Pre- Qualified Bidders for the 2nd stage for each Airport Project Instructions to Bidders (ITB) including Draft Concession Agreements and Minimum Performance Standards and Specifications to be shared with Pre-Qualified Bidders for each Airport Project Post issuance of final documents, Bid Proposals, including technical and financial proposals, to be invited from Pre-Qualified Bidders for each Airport Project. 15 Bidding Process(2/2) Evaluation of Technical Proposals for each Airport Project Financial evaluation of Technically Qualified bidders for each Airport Project Announcement of Winning Bidder for each Airport Project Notice of Award to be issued to the Winning Bidder for each Airport Project 16 ITPB: Key Definitions AFFILIATE . A person, corporation or any entity Controlled by or Controlling the Prospective Bidder or Consortium Member (as the case may be) or associated with the Prospective Bidder or Consortium Member (as the case may be) under common ownership and Control ELIGIBLE PERIOD . A period of last 12 years ending on 31st December 2016 ELIGIBLE PROJECTS . Projects in the Eligible Sector with minimum development costs of One Billion Pesos. Developments costs must be adjusted to current prices using the Philippine Statistics Authority’s Consumer Price Index as provided in the ITPBs. ELIGIBLE SECTORS . Eligible Sectors are airports, highways, expressways, power, ports, railways, metro rail, industrial parks/ estates, logistic parks, and real estate development 17 ITPB: Key Definitions CONTROL . The power to direct or cause the direction of the management policies and actions of a body corporate, whether through: i. ownership of at least fifty percent (50%) plus one (1) of either or a combination of the following: (i.a) the total outstanding voting shares, or (i.b) the voting rights, in another entity, or ii. the ability to elect a majority of the members of the other entity’s board of directors, or iii. any legal agreement or legal agreements, including a voting trust or other voting agreements In determining ownership of shares in a corporation, shares held both directly and indirectly will be counted. 18 ITPB: Key Definitions AIRLINE . An individual, partnership, corporation, or any other juridical entity that is a holder of any of the following permits issued by the Civil Aeronautics Board ("CAB") of the Philippines: A valid and effective Permit to Operate Scheduled International Air Transportation Services; or A valid and effective Permit to Operate Scheduled Domestic Air Transportation Services; or A valid and effective Foreign Air
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