The Subic Bay Metropolitan Authority (SBMA) has officially launched the Swiss challenge for the P7 billion proposal for the upgrading and management of the Subic Bay International Airport (SBIA) and this opened the field for entities to submit their proposals challenging the existing proposal of Cerberus Asia Pacific Investments LLC, according to a Manila Bulletin news report.
For previous blog posts about the SBIA project, click here, here and here.
To put things in perspective, posted below is an excerpt from the report of the Manila Bulletin. Some parts in boldface…
The Subic Bay Metropolitan Authority (SBMA) has formally started the Swiss challenge for the ₱7-billion proposal to manage and upgrade the Subic Bay International Airport (SBIA), as it issued a call to potential challengers to submit competing offers.
In a bid bulletin dated July 31, the SBMA invited firms to submit their comparative proposals for the project proposed by United States (US)-based Cerberus Asia Pacific Investments LLC.
SBMA said interested firms have until Oct. 29 to submit their proposals, with the bid opening scheduled to take place on the same day. A pre-bid conference to clarify the requirements and address queries from participating firms is set for Sept. 14.
Under a Swiss challenge, also known as a comparative challenge, the SBMA is allowing other companies to match the unsolicited proposal for the SBIA submitted by Cerberus, which was approved in April last year.
Cerberus has been granted original proponent (OP) status by the SBMA for its unsolicited proposal to upgrade, expand, operate, and maintain the SBIA. As the OP, Cerberus will have the right to match the best offer during the challenge process.
Cerberus is seeking to manage the SBIA under a 25-year operate-rehabilitate-add-transfer scheme to develop the gateway into a strategic cargo and logistics hub that would help ease congestion at Ninoy Aquino International Airport (NAIA).
“Currently underutilized, SBIA requires substantial investment and comprehensive operational improvements to realize its full potential over the concession period,” SBMA said.
Cerberus is planning to invest ₱7 billion to develop the project, nearly 13 percent higher than the initial project cost pegged at around ₱6.2 billion.
The investment will focus on upgrading existing airport facilities to align them with international benchmarks, alongside the development of new facilities to transform the airport into a higher-capacity logistics hub.
SBMA noted that the airport’s location and air-to-sea access pose a significant opportunity to develop it into a hub for commercial cargo and warehousing.
“This highlights a growing demand for air cargo services, driven by the need for industrial supplies and the transportation of finished products,” it said.
In addition, SBMA noted that the ongoing development of the Luzon Economic Corridor (LEC) further increases the need for improved air connectivity.
The LEC is an initiative led by the Philippines, the US, and Japan aimed at accelerating high-impact investments to enhance connectivity between Subic Bay, Clark, Manila, and Batangas.
“All these factors lead to the conclusion that the manufacturing industry in the Philippines, and particularly Central Luzon, is highly likely to significantly grow in the upcoming decade, both in terms of size of current facilities, and additional factories,” SBMA said.
“This leads to demand for air cargo in terms of industrial supplies, as well as output products, and attracts population growth and consumer wealth, leading to consumption increase and related air cargo demand,” it added.
By developing the SBIA, SBMA said it is ensuring that Clark International Airport will not be the only alternative once NAIA reaches its cargo capacity limit in the future.
The agency said an upgraded SBIA can ensure competitive pricing and provide additional options for airlines operating or planning to set up shop in Manila.
With this, Subic Bay is expected to help accommodate an additional 200,000 tons of cargo by 2035.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think there will be a lot of corporations locally and overseas that will submit their Subic Bay International Airport proposals to the SBMA? When was the last time you arrived at the international airport in the Subic Bay Freeport Zone?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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