The Philippine Department of Transportation (DOTr) has been granted original proponent status (OPS) on two proposals to upgrade the airports in Kalibo and Davao – two growing air hubs in the country.

Mega 7 Construction received an OPS for a PHP 3.8 Billion (USD $70.7 million) plan for the Kalibo International Airport, while Chelsea Logistics received its OPS for an unsolicited proposal to manage, operate, and maintain Davao International Airport worth PHP 49 Billion (USD $911.8 Million). The proposals will have to now go through a “Swiss Challenge,” allowing other companies to make counterproposals while Chelsea Logistics and Mega 7 Construction can match the new offers. They will also be evaluated by the Philippine’s National Economic Development Authority.

Both airports are expected to see increases in passenger traffic to help meet the growth of the Philippine aviation industry.

For Davao, it has become a major hub for Mindanao serving domestic flights and a few international flights to Singapore and Hong Kong. According to the Philippine Civil Aviation Authority of the Philippines (CAAP), Davao’s airport saw around 4.2 million passengers in 2017, doubling the amount of traffic over the last 8 years.

The interest of travel to Boracay has been the key driver of growth at Kalibo. The airport has seen the growth of international routes to key regional cities such as Beijing, Singapore, Seoul, and Taipei. CAAP data shows the airport welcomed 2.7 million passengers in 2016 – doubling the amount of passengers it served in 2010.

The two airports are part of the DOTr and the Philippine government’s high priority infrastructure projects under the “Build, Build, Build” program.

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