Gov't terminates public-private partnership of provincial airports

Gov't terminates PPP of provincial airports

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Gov't terminates PPP of provincial airports

Wednesday, May 24, 2017

PROCUREMENT of the public-private partnership (PPP) project for the development, operation, and maintenance of the Francisco Bangoy International Airport (FBIA), together with four other provincial airports, had been terminated according to the PPP Center Tuesday, May 23.

“The Government, through the implementing agencies, the Department of Transportation (DOTr) and Civil Aviation Authority of the Philippines (Caap), decided that the projects would be implemented through other modes,” the official statement read.

In a separate interview, Transportation Secretary Arthur Tugade said earlier that they are studying the possibilities of FBIA’s removal from the PPP pipeline projects considering the recent developments in the city.

Because of these developments, the government saw it a need to study if the airport should still be included or it would be better for the government “to undertake development first because of the changes.”

During the Aquino administration, the regional airports (including New Bohol-Panglao, Iloilo, Laguindingan, and Bacolod) PPP Projects were approved under a consolidated PPP structure by the Investment Coordination Committee and the National Economic and Development Authority (Neda) Board. The first bundle included Iloilo Airport and Bacolod-Silay Airport while the second bundle was composed of FBIA, New Bohol (Panglao) Airport, and the Laguindingan Airport. These were later unbundled November of last year.

The unbundling, with the objective of advancing selection and bidding award, allowed for the adjustment in the procurement processes including the change of dates for the pre-qualification and bid submissions.

Published in the SunStar Davao newspaper on May 24, 2017.

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