[ Philippine ] DOTr seeks changes to design of Caticlan airport

03 January 2018

The Department of Transportation (DOTr) is seeking the recommendation of the National Economic and Development Authority (Neda) regarding changes to the design of the ongoing construction of Caticlan Airport that could increase its cost by 300 percent. The airport upgrade is being undertaken by a unit of San Miguel Corp.

Neda Undersecretary Rolando G. Tungpalan told the BusinessMirror the Neda received the letter from the DOTr before the holidays. He said the agency still needs to formulate a proper reply before the proposal can be presented at the interagency Investment Coordination Committee (ICC).

“We still have to reply to the letter. We received it before Christmas,” Tungpalan said. “We still have to formulate a reply, study the matter, and not necessarily proceed to ICC.”

Tungpalan did not discuss the proposed changes to the airport’s design. But industry sources told the BusinessMirror the changes being sought by the DOTr for the airport could increase the cost of the project by as much as 300 percent.

Such an increase means that from the original approved cost of P2.5 billion in 2008, the investment needed could balloon to as much as P10 billion.

In 2008 the Neda Board approved the unsolicited Build-Rehabilitate-Operate-Transfer proposal for the Caticlan Airport Development Project. This involved the rehabilitation of the existing Caticlan airport to accommodate the increasing passenger traffic bound for Boracay Island and other tourist destinations in Region 6.

The project also aims to increase the capacity of the airport terminal for greater
passenger traffic, accommodate regional flights and larger aircraft and improve quality of service and passenger safety and security in the area.

The Air Transportation Office will manage the airport until 2010, while the Caticlan International Airport and Development Corp., which is financing the project, will take over its operation until 2033.

According to San Miguel, the airport in Caticlan, Aklan, is the major gateway to the world-famous Boracay. As part of the long-term modernization and expansion project for Boracay Airport, a larger and more technologically advanced airport facility is currently being developed for international operations.

“Its current concession holder is TransAire Development Holdings Corp. While some parts of the expansion have been completed, such as the runway extension, airfield-lighting works, rehabilitation of the old road and terminal construction, work is still ongoing on an additional passenger terminal and further extension of the runway.”

#Southeast Asia latest airport news #Southeast Asia airport Project updates #AirportNews #AirportUpdate #Airport #Philippine #Caticlan Airport

Credit: BusinessMirror
Credit link: https://businessmirror.com.ph/dotr-seeks-changes-to-design-of-caticlan-airport/

View more Industry News