Tag: Cerberus Capital Management

Subic Bay International Airport Swiss Challenge Bidding Reset Again

Subic Bay International Airport Swiss Challenge Bidding Reset Again

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The anticipated Swiss challenge bidding for the Subic Bay International Airport (SBIA) has been reset once more as the Subic Bay Metropolitan Authority (SBMA) extended again the deadline for the submission of comparative proposals as a result of making corrections on bidding parameters, according to a BusinessMirror news report.

To put things in perspective, posted below is an excerpt from the BusinessMirror report. Some parts in boldface…

The Subic Bay Metropolitan Authority (SBMA) has again extended the deadline for the submission of comparative proposals for the Subic International Airport (SIA) project after making corrections on bidding parameters for the P6.2 billion project to transform the Subic airfield into a modern high-capacity cargo and logistics hub.

In a bid bulletin, the SBMA Prequalification, Bids and Awards Committee (PBAC) said it will issue the final draft PPP (public-private partnership) contract or final bid bulletin on October 15, instead of September 29 as scheduled earlier.

Consequently, the opening of qualification documents from bidders will be held on November 16, instead of October 29, the SBMA-PBAC added.

The revised bidding schedule came about alongside corrections made by the SBMA on the bid parameters that defined the guaranteed fixed annual payment for the 25-year development contract.

The SBMA-PBAC clarified that while the base concession remittance amount submitted by the challenger for Contract Year 1 shall apply to the first seven years, the same shall be subject to an annual escalation of 1.5 percent beginning Contract Year 8 until its expiry on the 25th year.

The PBAC also clarified that the bid amount should be expressed as a fixed amount in Philippine pesos, and not as a percentage.

Following the revised bidding schedule, the SBMA also set the deadline for payment of participation fees by challengers at seven calendar days before the deadline of submission and opening of the comparative proposals. The participation fee has been set at the non-refundable amount of P1.4 million.

This was the second extension made for the bidding after the formal launch of the Swiss challenge for the Subic airport project on April 28 this year.

The SBMA opened the Subic airport project for comparative proposals, or Swiss challenge, after approving the unsolicited proposal by original proponent Cerberus Asia Pacific Investments LLC.

Cerberus Asia Pacific, a key affiliate of the New York-based alternative investment firm Cerberus Capital Management, presented its original proposal to the SBMA on March 26 last year.

The project includes the rehabilitation and comprehensive upgrading of existing facilities to restore them to full operational condition; operational and infrastructural improvements to enhance airport safety and regulatory compliance; and development of new airport infrastructure and acquisition of equipment to expand airport capacity, improve operational efficiency, and support new service offerings.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the corrections made by the SBMA will turn out final and legally sound so that the bidding can finally push through?

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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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco

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Swiss Challenge For Cerberus’ Subic Bay International Airport Proposal Launched

Swiss Challenge For Cerberus’ Subic Bay International Airport Proposal Launched

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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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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at @CarloCarrascoPH as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco

Investment firm Cerberus Capital Management will invest P15 billion more in the Philippines

Investment firm Cerberus Capital Management will invest P15 billion more in the Philippines

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While a lot of economists stated that the economy of the Philippines is unlikely to achieve 6% growth this year, the New York-based investment firm Cerberus Capital Management is investing an additional P15 billion in the country, according to a Philippine News Agency (PNA) news article. For the newcomers reading this, Cerberus is the operator behind the Agila Subic Shipyard.

To put things in perspective, posted below is an excerpt from the first PNA news article. Some parts in boldface…

New York-based alternative investment firm Cerberus Capital Management is investing an additional PHP15 billion in the Philippines within a year, as it sees progress in its existing operations and government support for foreign investors.

The company, which operates the 300-hectare Agila Subic Shipyard, the former Hanjin Shipyard in Subic Bay that it acquired in 2022, disclosed the plan during a meeting with President Ferdinand R. Marcos Jr. in Washington, DC earlier this week.

In a press release Friday, the company said the additional investments will be used to update the shipyard and introduce new projects in logistics, energy, and transport infrastructure.

Cerberus managing director Alexander Benard said they are “encouraged by the progress we’ve seen and by the strong support from the Philippine government.”

“We believe the Philippines holds significant long-term potential as a regional hub for industrial and logistics activity. We look forward to building on this momentum and supporting the development of our key strategic assets in the Philippines,” he said.

Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the economy of the Philippines will experience a breakthrough of additional foreign investments over the next six months?

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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Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram athttps://www.instagram.com/authorcarlocarrasco