South East Asia Industry News

[ Philippine ] Government said that it would offer investors in July 2017 the PHP 12.55 billion Clark International Airport Expansion Project that will be the test for a ‘hybrid’ financing scheme that mixes official development assistance (ODA
13 July 2017
Clark International Airport (CRK) in Pampanga has long been positioned as a premier gateway to decongest Manila’s Ninoy Aquino International Airport. The National Economic and Development Authority (NEDA) Board - led by President Rodrigo Duterte – has approved the national transport policy plus other infrastructure and other projects together worth some PHP 304.45 billion (about USD 6 billion). The list includes the Clark International Airport Expansion Project that will build an 82,600-m² terminal building capable of accommodating up to eight million passengers a year – almost double the current 4.2 million passenger capacity, and which should be completed by 2019. Bases Conversion and Development Authority (BCDA) CEO, Vivencio Dizon, said: “The Clark airport new terminal will be the first of the hybrid PPP model under the Duterte administration where the government builds it and then the private sector will maintain and operate.” He added that bidding both the construction and O&M contracts would be “this year” [2017]. The government, which has made infrastructure a priority, has said it will reduce reliance on PPP which it says takes too long to implement projects. Duterte has also recently complained of losing bidders stalling the progress of major projects they had targeted by securing court injunctions after questioning the bidding process. Meanwhile, Dizon said that the government would not wait for the construction of the airport to finish before bidding out the O&M contract, citing the need for the private operator to have inputs in the design and construction. Unsolicited proposals to expand the Clark airport have been rejected as the government decided it will pursue the project on its own. Dizon said that any such proposals had already been rejected since they were for the pure PPP models. The Filinvest Group and JG Summit Holdings had submitted a joint PHP 186.64 billion unsolicited proposal for the expansion and development of Clark Airport. GMR-Megawide Cebu Airport Corp., a joint venture (JV) of Megawide Construction Corp. and Bangalore-based airport operator GMR Infrastructure Ltd, also submitted a USD 5 billion proposal in 2016 to develop Clark Airport. #1052.OPS1
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[ Singapore ] Changi Airport Group (CAG) has unveiled the latest design details for its new Canopy Park concept, one of three main attractions located in its Jewel mixed-use complex at Changi Airport in Singapore.
26 June 2017
The Jewel complex spans 10 floors and is encased in a distinctive steel and glass
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[ PHILIPPINES ] The Department of Transportation (DOTr) abruptly terminated a plan to auction off to the private sector the operations and modernization of five regional airports
14 June 2017
A PHP 108 billion deal that generated strong interest from the private sector, as evidenced by the active participation of highly-qualified local and international players. The scrapping of the auction, involving the Davao, Bacolod, Iloilo, Laguindingan, and New Bohol (Panglao) airports, was announced by the Public Private Partnership Center on 23 May 2017. It said the Government would instead pursue the development of the airports ‘through other modes’, e.g. by funding the development itself.
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[ Malaysia ] Kuala Lumpur International Airport (KLIA) in Malaysia is expecting to spend up to MYR 150 million (about USD 35 million) over the next few years to upgrade and improve its baggage-handling efficiency, according to local media reports
14 June 2017
Malaysia Airports Holdings Bhd (MAHB) - which manages the airport - has called for a tender and is expected to start work to improve the airport by early in 2018, its general manager, Zainol Mohd Isa, was quoted as saying. After the upgrade, baggage sorters will be able to process 10,000 bags/hr, according to the reports. A baggage ‘saviour line’ will also be installed to act as backup, according to Zainol, who said this could be used during “super peak” periods. “This saviour line is not big in terms of capacity – we are looking at 2,000 bags/hr; it is really just part of the contingency,” he said, adding that the airport would also improve its baggage carousel, to allow for simultaneous baggage handling for multiple flights, instead of handling flights one by one. Other planned improvements include setting up a better inter-terminal transfer system for passengers and their luggage between KLIA’s two terminals, as well as a self-service bag drop at KLIA2. #1050.GSE1
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[ Laos ] The country is in need of four new international airports
08 May 2017
The country is in need of four new international airports as the existing four in Vientiane (Wattay International), Luang Prabang, Savan, and Pakse will be unable to accommodate growing air traffic in the coming decades. That is what Public Works & Transport Minister Dr Bounchanh Sinthavong told the Cabinet when he presented a strategic plan on airport development. The planned expansion of the passenger terminal at Wattay International would enable the airport to accommodate about 3 million passengers a year, which would make it capable of handling growing traffic until 2028, the Minister said. The airport, which now has an apron that can accommodate 48 parked aircraft and can land as large as 350-seat aircraft, has no more space available for further expansion as it is located near the city centre. Therefore, the Government needs to build a new larger international airport outside the capital to handle the growing traffic volumes. Construction of the new airport is expected to begin in 2025 and could be completed before 2030.
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[ Indonesia ] Indonesia has invited private companies to take part in developing airports because of limited funds in the state budget
08 May 2017
Transport Minister Budi Karya Sumadi has announced that the Government will offer an Australian company the opportunity to jointly manage Lombok International Airport in West Nusa Tenggara and several other airports. The offer came after a meeting between Budi and Australian Regional Development, Regional Communications, and Local Government and Territories Minister Fiona Nash on 9 March 2017. "We are offering an airport operator in Australia the chance to jointly operate Lombok Airport," Budi said. Currently, Lombok Airport is managed by state airport operator Angkasa Pura 1 (AP 1), which had expected to eventually transfer management responsibilities to the private sector. The airport has not yet been able to make a profit and as such the minister hopes that the co-operation will increase traffic and spur further airport development. The meeting also highlighted possible co-operation between the two countries in tourism and aviation, especially in remote and border areas. The development of airports in border areas such as Rote Island and emerging tourist destination Labuan Bajo, East Nusa Tenggara, were also discussed during the meeting. -- Indonesia has invited private companies to take part in developing airports because of limited funds in the state budget. General Director of Civil Aviation Agus Santoso explained that airports on the rim of Indonesia’s territory are still operated by Unit Pelaksana Teknis (UPT), the Transport Ministry’s technical implementation unit. “There will be two opportunities. The first is to cover the operational budget and the second is to increase the potential of the area,” he explained.
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[ Thailand ] AOT to invest approx. USD 11 billion in 6 airports development
08 May 2017
In order to accommodate the increasing number of passengers, AOT plans to enhance its 6 airports capacity. The ultimate project will be undertaken in three stages – short term, medium term and long term to be completed by 2035.
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[ SINGAPORE ] The Changi East project "Terminal 5"
08 May 2017
Set to be one of the largest terminals in the world, Terminal 5 will be capable of handling 50 million passengers per annum in its initial phase, bringing Changi Airport’s total capacity to 135 million passengers per annum when completed in late 2020s. Terminal 5 will be connected to Terminals 1 to 3 to allow the expanded Changi Airport to be operated as a single, integrated airport without compromising on the ease of transfer between different terminals, passenger convenience and airfield operational efficiency. The terminal will also be connected to the Singapore’s Mass Rapid Transit (MRT) network.
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[ Indonesia ] The Indonesian Government’s plan to build a large-scale airport in North Bali
08 May 2017
The Indonesian Government’s plan to build a large-scale airport in North Bali will be finalised during 2017 amid an increasing bottleneck at the existing hub on the south of the island, according to the Ministry of Transportation’s general secretary, Sugihardjo. “There’s urgent need for an airport in North Bali due to limited capacity of Ngurah Rai International Airport. With just one runway, Ngurah Rai can only serve 27 to 35 flights per hour,” Sugihardjo said. From 2015 to 2016, the number of passengers handled by Ngurah Rai International Airport increased by 16%. The new airport in North Bali is expected to have a runway that can accommodate large aircraft such as the Airbus A380, helping to absorb the growth in international air traffic. While still in the planning stages, the project has already attracted investor interest, Sugihardjo said, adding: “There is no finalisation yet, but we’re looking to decide things within the year. So far, there are two investors who have shown interest. They are a French investor and a local investor. We made sure that they know we’re looking for a long runway to accommodate large aircraft. From that demand point of view, this project surely has a lot of potential.”
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[ Vietnam ] The Civil Aviation Authority of Vietnam (CAA) will co-operate in May 2017 with the US FAA to conduct an assessment of the CAA’s capacity to oversee safety in accordance with ICAO standards.
08 May 2017
National carrier, Vietnam Airlines, in November 2016 asked the Ministry of Transport to allow it to open a direct route to the US by the end of 2018. However, a prerequisite for the US to consider approval is that the country’s aviation authority has reached the CAT 1 rating. The move is in preparation for the FAA’s International Aviation Safety Assessment Programme (IASAP), which is an attempt to test the local aviation authority’s ability to adhere to standards and recommended practices for aircraft operations and maintenance. In 2016, the CAA set up a project to strengthen the supervision capacity of aviation safety with the aid of USD 0.56 million, funded by the US Trade and Development Agency. If the local aviation authority is qualified for CAT 1, Vietnamese air carriers will be able to transport goods and passengers directly between Vietnam and the US. The country currently has no direct route to the US.
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