DOTr seeks conclusion of Davao airport project deal with Chelsea

Subscribe Now September 17, 2020 at 08:22am

The Department of Transportation (DOTr) eyes to wrap up negotiations with Dennis Uy’s Chelsea Logistics Holdings Corp. this month for its unsolicited proposal to modernize the Davao International Airport.

Chelsea has submitted a revised financial proposal for the project due to the COVID-19 pandemic.

Transportation Undersecretary for planning Ruben Reinoso said the proposal is being reviewed by the DOTr and the Civil Aviation Authority of the Philippines.

The proposal will then be submitted to the National Economic and Development Authority-Investment Coordination Committee (ICC) should it be cleared by the DOTr.

“On the Davao International Airport, there are ongoing negotiations on the unsolicited proposal. Hopefully, we can finish the unsolicited proposal negotiations by the end of the month, after which time it will be submitted to the ICC,” Transportation Secretary Arthur Tugade said.

Chelsea’s unsolicited proposal to modernize the Davao International Airport secured the NEDA-ICC clearance in December last year.

With the approval, Chelsea was able to commence negotiations with the DOTr on the terms of its plan to modernize the airport.

Chelsea was granted the original proponent status for the project in October 2018. It also secured endorsements from the Davao City Chamber of Commerce and Industry, Davao City Council and Davao City Development Council last year.

Chelsea president and CEO Chryss Alfonsus Damuy earlier told The STAR the company is pushing through with its unsolicited proposal for the Davao International Airport amid the impact of the pandemic on the aviation industry.

The proposal covers reconfiguration and expansion of the terminal building, construction of parallel taxiway, improvement of airside and landside facilities, installation of modern airport IT systems, and all activities needed to improve airport services.

The Davao International Airport is the primary gateway to Mindanao and the third largest airport in the country.

The DOTr earlier expressed support for the immediate implementation of the plan to modernize the airport as it would boost the economic growth of the Davao region and the rest of Mindanao through increased trade and tourism activities.


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