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Davao, Iloilo, Laguindingan, Bacolod-Silay and New Bohol (Panglao)AIRPORTS DEVELOPMENT,
OPERATIONS AND MAINTENANCE PROJECTS
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Pre-Qualification Conference
13 March 2017
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Outline of Presentation
Way Forward
Instructions to Prospective Bidders
Bidding Process
Project Description & Scope
Background of Airports
Development Objective
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Airport Projects Development Objective
To improve services at the respective key regional airportsincluding required enhancement of airside and landside facilities atthe respective airports by granting concessions to private sectorproponents.
Location- Airports
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Iloilo AirportEstimated Cost:
PHP 30.4 BnPassenger Traffic (2016):
~1.94 Mn
New Bohol Airport
Estimated Cost: PHP 4.57 Bn
Passenger Traffic (Tagbilaran) : 0.9 Mn
Davao AirportEstimated Cost:
PHP 40.57 BnPassenger Traffic (2016):
~3.55 Mn
Bacolod-SilayAirport
Estimated Cost: PHP 20.26 Bn
Passenger Traffic (2016): ~1.53 Mn
LaguindinganAirport
Estimated Cost: PHP 14.62 Bn
Passenger Traffic (2016): ~1.80 Mn
Davao International Airport
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Davao airport is located inCatitipan, Barangay Buhangin,Davao City.
The Davao airport has beenoperational for more than 15 years
In terms of passenger trafficthroughput, it is the third largestairport in the Philippines
It provides both domestic andinternational connectivity
Passenger Traffic (2016) in Mn ~3.55
CAGR for the period 2007-16 ~9.78%
Cargo Traffic (2016) in MTs 53,659
CAGR for the period 2007-16 ~1.84%
Iloilo International Airport
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Iloilo International airport is located inCabatuan, Province of Iloilo (WesternVisayas region)
It commenced operations in 2007 andis one of the recently completedairports in Philippines with modernfacilities
In terms of passenger trafficthroughput, it is the fifth largest airportin the Philippines
It provides both domestic andinternational connectivity)
Passenger Traffic (2016) in Mn ~1.94
CAGR for the period 2007-16 ~7.62%
Cargo Traffic (2016) in MTs 13,339
CAGR for the period 2007-16 ~3.13%
Laguindingan International Airport
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Laguindingan International airport islocated on the northern tip of MisamisOriental and is approximately 45kilometers from Cagayan de Oro cityand approximately 65 kilometers fromIligan city
It commenced operations in June 2013replacing the old Lumbia Airport
It is the sixth largest airport in thePhilippines in terms of passenger traffichandled
Passenger Traffic (2016) in Mn ~1.80
CAGR for the period 2007-16 ~9.72%
Cargo Traffic (2016) in MTs 20,486
CAGR for the period 2007-16 ~5.73%
Bacolod-Silay Airport
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Bacolod Airport is located in Silay City,Negros Occidental (Western Visayasregion)
It commenced operations in 2008 andis one of the recently completedairports in Philippines with modernfacilities
In terms of passenger trafficthroughput, it is the eighth largestairport in the Philippines
Passenger Traffic (2016) in Mn ~1.53
CAGR for the period 2007-16 ~7.75%
Cargo Traffic (2016) in MTs 16,534
CAGR for the period 2007-16 ~8.24%
New Bohol International Airport
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New Bohol airport is to be located inPanglao Island and shall replace theexisting Tagbilaran Airport
Tagbilaran airport is an importantairport in the Philippines with largelytourist–driven traffic
The airport is expected to have adesign capacity of ~1.958 millionpassengers
Passenger Traffic (2016) in Mn(for existing Tagbilaran Airport)
~0.9
CAGR for 2007-16 ~10.88%
Terminal Design Capacity inMn 1.958
Cargo Traffic (2016) in MTs 4,138
Existing Facilities at the Airports
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Davao Iloilo Laguindingan
Bacolod-Silay New Bohol
Total Area (hectares) 217 188 354 187 220
Terminal Floor Area (sq.m.)
22,683 13,700 7,184 6,187 13,337
Runway 3000 m x 45m
2500 m x 45m 2100 m x 45m 2002 m
x 45m2500 m x 45m
Apron Area(sqm) 74,250 48,210 46,150 25,300 49,335
1. Taking-over the operations and maintenance of the existing facilities (newlybuilt 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 andcargo terminal(s), along with all associated infrastructures and facilities
3. Enhancement/development of airside facilities to meet the enhanced scale ofoperations of the airports
4. Installation of all required equipment and associated facilities
Project Description: Scope of Work (1/3)
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5. Provision of required works with respect to the existing terminals (eitherfacilities already in operation, as in the case of the Davao, Iloilo, LaguindinganAirport and Bacolod-Silay, Projects, or newly-constructed facilities, as in thecase of the New Bohol (Panglao) Airport Project), along with all associatedinfrastructure and facilities, necessary to handle operations until the expansionof 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, amongothers, the apron, runway and taxiway), during the entire concession period
Project Description: Scope of Work (2/3)
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Project Description: Activities not included in
Scope of Work* (3/3)
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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 facilities5. Existing CAAP administration building
6. Existing CAAP staff houses
Further, the following services are not included in the scope of the Projects and wouldcontinue to be provided by the relevant agencies at the airports:1. Customs2. Immigration3. Security4. Quarantine5. Services provided by the Philippine Overseas Employment Administration (POEA) andthe Overseas Workers Welfare Administration (OWWA)6. Other services currently being provided by other Philippine government agencies
Project Description: Contractual Framework
Legal FrameworkRepublic Act No. 6957, as amended by Republic Act No.7718 ("BOT Law”), and its 2012 Revised ImplementingRules and Regulations (“Revised IRR”)
PPP Structure Operate-Add-Transfer (“OAT”)Implementing Agencies
Department of Transportation andCivil Aviation Authority of the Philippines
Concession Period
30 years in the case of the Davao, Iloilo, Laguindinganand Bacolod-Silay Airport Projects35 years in the case of the New Bohol (Panglao) AirportProject
Right of Way and Possession of Airport Land
Government will grant appropriate rights to project siteand relevant existing assets
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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 currentprocess
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 andMinimum Performance Standards and Specifications to be shared withPre-Qualified Bidders for each Airport Project
Post issuance of final documents, Bid Proposals, including technical andfinancial proposals, to be invited from Pre-Qualified Bidders for eachAirport Project.
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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
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Eligible Sectors are airports, highways, expressways, power, ports, railways, metro rail,industrial parks/ estates, logistic parks, and real estate development
Projects in the Eligible Sector with minimum development costs of One Billion Pesos.Developments costs must be adjusted to current prices using the Philippine StatisticsAuthority’s Consumer Price Index as provided in the ITPBs.
A person, corporation or any entity Controlled by or Controlling the Prospective Bidder orConsortium Member (as the case may be) or associated with the Prospective Bidder orConsortium Member (as the case may be) under common ownership and Control
ITPB: Key Definitions
AFFILIATE
ELIGIBLE PROJECTS
ELIGIBLE PERIOD
ELIGIBLE SECTORS
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A period of last 12 years ending on 31st December 2016
The power to direct or cause the direction of the management policies and actions of a bodycorporate, whether through:
i. ownership of at least fifty percent (50%) plus one (1) of either or a combination of thefollowing:
(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 votingagreements
In determining ownership of shares in a corporation, shares held both directly and indirectlywill be counted.
ITPB: Key Definitions
CONTROL
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An individual, partnership, corporation, or any other juridical entity that is a holder of any ofthe 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 Carrier's Permit and providing scheduled passenger
services.For avoidance of doubt, an individual, partnership, corporation, or any other juridical entityproviding dedicated cargo transport services shall not be deemed an Airline for the purposesof this ITPB
ITPB: Key Definitions
AIRLINE
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An individual, partnership, corporation, or any other juridical entity that:(1) is an Airline; or(2) is an Affiliate of an Airline
AIRLINE- RELATED ENTITY
ITPB: Qualification Requirements
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Legal Qualification Requirement
Technical Qualification Requirement
Development Experience
Design and Engineering Experience
Operations and Maintenance Experience, and
Qualified Key Personnel
Financial Qualification Requirement
Legal Qualification Requirement (1/2)
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Legal Qualification Requirement: A Prospective Bidder must be
An individual, partnership, corporation or any other juridical entity; or A Consortium whose members are individual(s), partnership(s),
corporation(s) or any other juridical entity(ies) Subject to the other provisions detailed in the ITPB
Participation of Airline Related Entities In the Consortium Airline Related Entity/Entities cannot own or be proposed to own an
aggregate of more than 33% total equity in the Consortium
Legal Qualification Requirement (2/2)
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Participation of Airline Related Entities Project SPC Airline-Related Entity/Entities in the Project SPC cannot own or be
proposed to own an aggregate of more than 33% total equity in anyProject SPC for the duration of the Concession Period
In the Facility Operator Airline-Related Entity/Entities in the Facility Operator cannot own or be
proposed to own an aggregate of more than 33% of the total equity in aFacility Operator if such Airline-Related Entity was the entity that fulfilledthe Winning Bidder’s Operations and Maintenance Experience asprovided in Section II-09 (2)(c);
Technical Qualifications: Development Experience
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Development Experience: must have satisfactorily undertaken thedevelopment of Eligible Projects in terms of overall responsibility fordesigning, engineering, and construction of Eligible Projects during theEligible Period, such that Sum total of the capital costs incurred for Eligible Projects is at least PhP
5.0 Billion; and there is At least one Eligible Project for which the capital costs incurred is at least
PhP 2.0 Billion
Entities which fulfill this requirement An individual, partnership, corporation, or any other juridical entity, the
Prospective Bidder itself or its Affiliate; or In case of a Consortium, a Consortium Member having at least thirty-
three and one third percent (33 1/3%) interest in the Consortium or suchConsortium Member’s Affiliate.
Must propose at least one, and at most five, Construction Contractors
Technical Qualifications: Design and Engineering
Experience (1/3)
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Design and Engineering Experience: must have satisfactorily undertakenduring the Eligible Period, detailed architectural design and engineering,including airport planning, construction planning and phasing inimplementing projects, for airport terminal facilities and associatedinfrastructure for at least one (1) International Airport possessing with thefollowing criteria for respective airports:
Davao Iloilo Laguindingan
Bacolod New Bohol
Passenger capacity of at least
4 Million 3 Million 3 Million 2 Million 2 Million
Terminal area of at least 20,000 sqm 14,000 sqm 14,000 sqm 7,000 sqm 7,000 sqm
Handling capability
has the capability to handle Code 4E aircrafts, demonstrating works undertaken for landside facilities such as passenger terminals and associated facilities, and airside facilities such as runway, taxiways, aprons, etc.
Technical Qualifications: Design and Engineering
Experience (2/3)
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For expansion projects, the design and engineering experience mustinvolve upgrading the International Airport to meet all the criteria specifiedearlier (for respective airports), and additionally involve at least any of thefollowing criteria (for respective airports:
Davao Iloilo Laguindingan
Bacolod New Bohol
Increase in passenger capacity of at least
1 Million 750,000 750,000 500,000 500,000
Increase in terminal area of at least
5,000 sqm 3,500 sqm 3,500 sqm 1,700 sqm 1,700 sqm
Upgrade in handling capability
upgrade that allows the airport to handle Code 4E aircrafts
Technical Qualifications: Design and Engineering
Experience (3/3)
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Entities which fulfill this requirement
An individual, partnership, corporation, or any other juridical entity, theProspective Bidder itself or its Affiliate or a nominee Design andEngineering Contractor; or
In case of a Consortium, a Consortium Member or its Affiliate or anominee Design and Engineering Contractor
• If fulfilled by a Design and Engineering Contractor, at least one and atmost five, Design and Engineering Contractors to be proposed each ofwhich must have the relevant experience and possess the necessarylicenses
Technical Qualifications: Operation and Maintenance
Experience(1/2)
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Operation and Maintenance Experience: must have experience in either O&M of an International Airport for a period of at least three (3)
consecutive calendar years anytime within the Eligible Period , with suchInternational Airport having handled an Annual Passenger Throughput ofat least (for respective airports):
Davao Iloilo Laguindingan Bacolod New Bohol
4 Million 3 Million 3 Million 2 Million 2 Million
Technical Qualifications: Operation and Maintenance
Experience(2/2)
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Entities which fulfill this requirement
An individual, partnership, corporation, or any other juridical entity, theProspective Bidder itself or its Affiliate; or
In case of a Consortium, a Consortium Member having at least ten percent(10%) interest in the Consortium or such Consortium Member’s Affiliate
The Prospective Bidder, the Consortium Members, and/or theproposed Subcontractors must have, among them and their Affiliates’personnel, with qualifications and experience as follows: At least 1 person with a minimum of 10 years of experience and having had the
overall responsibility for the development of at least 3 Eligible Projects, each witha project cost of at least Php 500 Million, with at least 1 of such Project having aproject cost of at least Php 1 Billion, and with at least one of such Project beingan airport
At least 1 person with a minimum of 10 years of experience and having beenresponsible for the coordination of the operations and maintenance of at least 1airport with an Annual Passenger Throughput of at least 2 million passengers perannum for a period of at least 3 consecutive calendar years anytime within theEligible Period
At least 1 person with a minimum of 10 years experience and having beenresponsible for the commercial development and marketing of an airport with anAnnual Passenger Throughput of at least 2 million passengers per annum for aperiod of at least 3 consecutive calendar years anytime within the Eligible Period
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Technical Qualifications: Qualified Key Personnel
Financial Qualification Requirement(1/2)
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Financial Qualification Requirements: A Prospective Bidder must fulfill the
following requirements:
For a Prospective Bidder Net Worth of at least:
..or its foreign currency equivalent as of its latest audited financial statements, or A Set-Aside Deposit equivalent to the same amount.
For a Consortium the Net Worth of Consortium Members who have an equity share of at
least twenty-five percent (25%) each in the Consortium may be added
Davao Iloilo Laguindingan Bacolod New Bohol
Php 1.5 Billion Php 1 Billion Php 1 Billion Php 1 Billion Php 1 Billion
Financial Qualification Requirement(2/2)
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Entities which fulfill this requirement
An individual, partnership, corporation, or any other juridical entity, theProspective Bidder or its Affiliate; or
In case of a Consortium, Consortium Member with at least twenty-five per cent (25%) equity interest in the Consortium, or such Consortium Member’s Affiliate
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Prospective Bidder as a Corporation, Partnership or Other Juridical Entity No restrictions imposed on the ownership structure; provided that, the Prospective
Bidder ensures its continued eligibility with respect to the individual Technical andFinancial Qualification Requirements as provided in the Invitation Documents
Prospective Bidder as a Consortium Lead Member and the Consortium Member proposed to meet the Development
Experience may not withdraw or reduce their percentage interests in the Consortiumas declared in the Consortium`s Qualification Documents
Other members of the Consortium may withdraw/ be substituted prior to the BidProposals Submission Date
*These rules shall apply from the Qualification Documents Submission Date to the Bid Proposals Submission Date
Lock-Up Rules During the Bidding Process* (1/2)
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Prospective Bidder as a Consortium In case of substitution, the Prospective Bidder has to ensure its continued eligibility
with respect to the individual Technical and Financial Qualification Requirements asprovided in the Invitation Documents
Any change in the composition of the Consortium and/or in the list of Subcontractorsmust be approved by the PBAC
Lock-Up Rules During the Bidding Process* (2/2)
*These rules shall apply from the Qualification Documents Submission Date to the Bid Proposals Submission Date
Government commitment for the projectFocus on development of the country’s transport infrastructure through private sector participation
Strong project fundamentals Attractive location of the airport with significant business and tourist potential
NEDA* Board-approved projects All projects have been approved by NEDA
Optimal PPP structuringbalanced risk sharing and competitive returns to private sector proponents
PPP Agreement for 30/35 yearsscope for long term investment & returns
Award through competitive biddingtransparency and equality for all prospective private sector bidders/investors
*NEDA - National Economic & Development Authority
Why Invest?
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Strong Legal Framework – BOT LawEnunciates the policy of the state recognizing the role of the private sector as main engine for national growth and development
READY FOR BUSINESS.
Activity Expected TimelinesQualification Documents Submission Date 11 May 2017
Notification of results of evaluation of Qualification Documents
within 5 calendar days fromapproval of Pre-Qualificationresults
Issuance of Instructions to Bidders, Draft Concession Agreement & Draft MPSS
1 June 2017
Bid Proposals Submission Date 8 December 2017Issuance of Notice of Award by January 2018
Signing Date of Concession Agreement
within 5 calendar days from receipt of the Notice of Complete Compliance with all Post-Award Requirements
Note that these timelines are tentative and may be subject to change. The final timelines shall be communicated at the appropriate time, as necessary.
Way Forward: Expected Timelines
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Way Forward: Pre-Qualification Submission
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11 May 2017, Before 2:00 PMat
Pre-Qualification, Bids and Awards Committee for
Department of Transportation
Civil Aviation Authority of the Philippines,
[___________] Airport Project
Unit 164, 16/F, The Columbia Tower, Ortigas Avenue, Mandaluyong City
Manila, Philippines
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THANK YOU!