Udenna eyes Davao airport project

DAVAO CITY – Davao-based Udenna Infrastructure Corporation has sought the endorsement of the City Council in its bid to undertake the modernization and expansion of the Francisco Bangoy International Airport, or the Davao International Airport.

Engr. Manuel Jamonir, business development manager of the Udenna Infrastructure Corporation, presented to the City Council on Tuesday the firm's unsolicited proposal to develop, operate and maintain the Davao Airport at PHP48.8 billion under the Public Private Partnership (PPP).

Udenna Infrastructure Corporation is a subsidiary of the Udenna Group of Companies controlled by Davao City business magnate Dennis Uy.

Jamonir said the PHP48.8 billion is the nominal cost under private financing--at no cost to the government. The project will include the land side and air side developments, reconfiguration and expansion of the passenger terminal building, parallel taxiway, and new airport technologies to enhance passenger experience.

Jamonir said Udenna already received an original proponent status from the Department of Transportation (DOTr) after it submitted the proposal last year.

“It is an unsolicited PPP proposal so it has to follow certain process under the BOT (Build Operate Transfer) law. We submitted the full proposal last year and we received the original proponent status,” Jamonir told reporters in an interview at the sidelines of Tuesday’s regular session.

Jamonir explained that “if you have the original proponent status, the government will only talk to you and second, you have the right to match during the Swiss challenge”.

Right now, Jamonir said, the unsolicited proposal is under evaluation by the National Economic Development Authority (NEDA).

Councilor Jesus Zozobrado, chairman of the City Council Committee on Public Works and Highways, welcomed Udenna’s interest to undertake the project.

Being an unsolicited proposal, Zozobrado said the government will need to open the project to a Swiss challenge to find comparable offers from other interested investors and ensure that the public gets the best deal.

Growth forecast

Asked why Udenna opted to propose for the modernization and expansion of the current airport rather than putting a new one, Jamonir said the facility still has more room to expand to cater the increasing cargo and passenger volume.

Currently, Jamonir said the existing airport can accommodate four million passengers based on their feasibility and technical analysis. Udenna seeks to increase passenger volume by up to 15 million in 30 years.

In 2018, Davao airport recorded 10 percent increase in passenger volume and 30 percent increase in cargo volume. Passenger traffic at Davao airport hit 4.2 million that year.

Zozobrado said the proposed development of the Davao airport is urgent because the current traffic volume has already exceeded the facility’s designed capacity.

He said traffic is expected to continue to grow exponentially as Davao’s economy progresses, adding the airport was originally designed to accommodate between two to three million passengers.

“We have all experienced the congestion in the passenger terminal building and have seen trucks queuing towards the cargo terminal. We have raged at the poor air conditioning, the malfunctioning toilets, the frequent breakdown of security equipment, and the lack of retail options in the airport,” Zozobrado said.

According to Zozobrado, the Davao airport was among the major airports that were put up for PPP three years ago but the initiative was shelved.

"And rightly so because us, the local stakeholders, were not given ample opportunity to participate in the project’s development," the councilor said.

Zozobrado said the City Council will have to review and endorse the project to the DOTr, the Civil Aviation Authority of the Philippines (CAAP), and the Regional Development Council (RDC). (PNA)