PPP Airport Modernization

PPP Information Memorandum:
Regional Airports –
Development, Operations &
Maintenance
!
2015

Regional Airports Public-Private
Partnership (PPP) Project
Republic of the Philippines
DEPARTMENT OF TRANSPORTATION AND
COMMUNICATIONS and CIVIL AVIATION
AUTHORITY OF PHILIPPINES
AIRPORT DEVELOPMENT, OPERATIONS AND MAINTENANCE
PROJECTS: BACOLOD-SILAY, DAVAO, ILOILO, LAGUINDINGAN,
NEW BOHOL (PANGLAO), and PUERTO PRINCESA.
Project Information Memorandum

Project Information Memorandum for Six Airports
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LIST OF ABBREVIATIONS
BOT Build-Operate-Transfer
BSP Bangko Sentral ng Pilipinas or Central Bank of the Philippines
CAAP Civil Aviation Authority of the Philippines
CAB Civil Aeronautics Board
CAGR Compounded Annual Growth Rate
DOT Department of Tourism of the Philippines
DOTC Department of Transportation and Communications of the Philippines
EO Executive Order
GDP Gross Domestic Product
GRDP Gross Regional Domestic Product
IRR Internal Rate of Return
ICAO International Civil Aviation Organization
ILS Instrument Landing System
IRR Implementing Rules and Regulations
ITB Instructions to Bidders
ITPB Instructions to Prospective Bidders
LGU Local Government Unit
NEDA National Economic and Development Authority
OAT Operate-Add-and-Transfer
O&M Operations and Maintenance
PBAC Pre-Qualification, Bids, and Awards Committee
PIM Project Information Memorandum
PPP Public-Private Partnership
RA Republic Act
ROW Right of Way

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Disclaimer
The information contained in this Project Information Memorandum (PIM) and information
subsequently provided to Prospective Bidder(s) through bid bulletins or other documentary forms by
or on behalf of DOTC/CAAP or any of its employees or advisors, is provided under the terms and
conditions set out in the Instructions to Prospective Bidders (ITPB) and such other terms and
conditions subject to which such information is provided.
This document is not an agreement and is neither an offer nor invitation by DOTC/CAAP to the
Prospective Bidders (parties interested in bidding for the Projects) or any other person. The purpose
of this document is to provide interested parties with information that may be useful to them in
consideration of the Bacolod-Silay, Davao, Iloilo, Laguindingan, New Bohol (Panglao), and Puerto
Princesa Airport Development, Operations and Maintenance Projects (the “Project(s)”). This
document includes statements, which reflect assessments arrived at by DOTC/CAAP in relation to the
Project. Such assessments and statements do not purport to contain all the information that each
Prospective Bidder may require. This document may not be appropriate for all persons, and it is not
possible for DOTC/CAAP, its employees or advisors to consider the investment objectives, financial
situation and particular needs of each party who reads or uses this document. The assessments,
statements and information contained in this document may not be complete, accurate, adequate or
correct. Each Prospective Bidder should therefore, conduct its own investigations and analysis and
should check the accuracy, adequacy, correctness, reliability and completeness of the assessments,
statements and information contained in this document and obtain independent advice from
appropriate sources.
Information provided in this document to the Prospective Bidder(s) is on a wide range of matters,
some of which may depend upon interpretation of law. The information given is not intended to be an
exhaustive account of statutory requirements and should not be regarded as a complete or
authoritative statement of law. DOTC/CAAP accepts no responsibility for the accuracy or otherwise for
any interpretation or opinion on law expressed herein.
DOTC/CAAP, its employees and advisors make no representation or warranty and shall have no
liability to any person, including any Prospective Bidder, under any law, statute, rules or regulations or
tort, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost or expense
which may arise from or be incurred or suffered on account of anything contained in this document or
otherwise, including the accuracy, adequacy, correctness, completeness or reliability of the document
and any assessment, assumption, statement or information contained therein or deemed to form part
of this document or arising in any way with pre-qualification of Prospective Bidders for participation in
the bidding process.
DOTC/CAAP also accepts no liability of any nature whether resulting from negligence or otherwise
howsoever caused arising from reliance of any Prospective Bidder upon the statements contained in
this document.
DOTC/CAAP may, in its absolute discretion but without being under any obligation to do so, update,
amend or supplement the information, assessment or assumptions contained in this document and
any of the Invitation Documents, comprised of i) the Invitation to Pre-Qualify and Bid, ii) this Project
Information Memorandum (PIM) and iii) the Instructions to Prospective Bidders (to be made available
in February 2015). Further, the DOTC, its employees and advisors shall not be liable to any
Prospective Bidder (including the Winning Bidder) in respect of any failure to (i) disclose or make
available any information, documents or data; (ii) amend, update, or supplement the Invitation
Documents; or (iii) provide any information regarding any inaccuracy, error, omission, defect or
inadequacy in the Invitation Documents.
The issuance of this PIM and the Instructions to Prospective Bidders does not imply that DOTC/CAAP
is bound to select and shortlist pre-qualified bidders for bid stage or to appoint the selected bidder or
private sector proponent, as the case may be, for the Projects and DOTC/CAAP reserves the right to
reject all or any of the pre-qualification documents or bids without assigning any reason whatsoever.

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The Prospective Bidder shall bear all its costs associated with or relating to the preparation and
submission of its Pre-Qualification Documents including but not limited to preparation, copying,
postage, delivery fees, expenses associated with any demonstrations or presentations, which may be
required by DOTC/CAAP or any other costs incurred in connection with or relating to its Pre-
Qualification Documents. All such costs and expenses will remain with the Prospective Bidder and
DOTC/CAAP shall not be liable in any manner whatsoever for the same or for any other costs or other
expenses incurred by a Prospective Bidder in preparation or submission of the Pre-Qualification
Documents, regardless of the conduct or outcome of the bidding process.
In purchasing the Invitation Documents, each Prospective Bidder accedes to the bid parameters,
terms and obligations provided therein. In no case shall any Prospective Bidder be allowed to modify
the bid parameters even if, in its opinion, it offers better terms than that provided herein.

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Transaction Packages
Background
The Bacolod-Silay, Davao, Iloilo, Laguindingan, New Bohol (Panglao), and Puerto
Princesa Airport Development, Operations and Maintenance Projects (the “Projects”)
aim to improve services at the respective key regional airports by concessioning the
operations and maintenance to private sector proponents, including required
enhancement of airside and landside facilities at the respective airports.
With an objective to implement the above mentioned Projects on a PPP basis, the
DOTC and CAAP propose to tender these projects for prospective bidders as
packages with each package comprising three (3) airports. Subject to conditions of
eligibility and participation under the Invitation Documents, BOT Law, and other
existing laws, prospective bidders are free to participate in these transactions.
Details of terms and conditions for participation in the bidding process including
legal, technical and financial requirements set by the DOTC / CAPP for pre-
qualification would be provided in the Instructions to Prospective Bidders (and its
Annexes).
Transaction Packages
For the purpose of this invitation to pre-qualify, the preference of the DOTC and
CAAP is to have two packages of three (3) airport facilities each, as follows:
Package 1 Package 2
Puerto Princesa Airport Davao Airport
Iloilo Airport Laguindingan Airport
Bacolod Airport New Bohol (Panglao) Airport
Key characteristics:
Total traffic (2013): 4.50 million for the
entire package
International traffic: Puerto Princesa
and Iloilo Airport
Key characteristics
Total traffic (2013): 5 million for the entire
package
International traffic: Davao and New
Bohol Airport

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Figure 2 : Province of Iloilo
Iloilo Airport Background
Iloilo Airport is located in Cabatuan, Province of Iloilo (Western Visayas region) and
is among the top 5 airports in Philippines in terms of 2012 traffic data. It commenced
operations in 2007 and is one of the recently completed airports in Philippines with
modern facilities.
Iloilo Airport presently provides both domestic and international connectivity (7
domestic destinations and 2 international destinations). International connectivity is
presently to Hongkong and Singapore.
Figure 1: Location and Connectivity at Iloilo Airport
Source: CAB Schedule
Catchment Area for Iloilo Airport
Iloilo Airport mainly caters to a
catchment area including the Iloilo
province and the city of Iloilo. The
province is in the Western Visayas
Region (designated as Region VI of the
Philippines) located in central part of
the country.
7 domestic
destinations
2 international
destinations

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Western Visayas Region and Iloilo Province
The Western Visayas region (designated as Region VI of the Philippines) is located
in the central part of the country and lies between the Visayan and Sibuyan Seas.
Spread over a total area of 20,223 square kilometers, it is the 7th largest region of
Philippines. The Western Visayas region is comprised of six provinces and two
urbanized cities namely:
Aklan – Province
Antique – Province
Negros Occidental – Province
Capiz – Province
Guimaras – Province
Iloilo – Province
Iloilo City – Urbanized City
Bacolod – Urbanized City
Figure 3: Provinces and Cities in Western Visayas Region
Source: List of Regions, National Statistical Coordination Board, http://www.nscb.gov.ph/activestats/psgc/listreg.asp
The Iloilo province occupies a total land of 4,663 square kilometers. The Province of
Iloilo is bounded by:
Province of Capiz and Jintotolo Channel in the north
Panay Gulf and Iloilo Strait in the south
Visayan Sea and Guimaras Strait in the east
Province of Antique in the west
It is further divided into five (5) congressional districts which are further sub-divided
into 43 municipalities. Iloilo City, a major urbanized city, is the city capital of the
province. The new Iloilo airport is located in the Cabatuan municipality which forms
part of the Third District of Province of Iloilo.
Population – Iloilo City and Iloilo Province
The Province of Iloilo is the second most populated province in the Western Visayas
region (after the province of Negros Occidental) contributing 33% of the region‟s
population. Iloilo City accounts for 6% of the population of the Western Visayas
Region. The population of the provinces in Western Visayas region in 2010 is
highlighted in the table below.

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Table 1 : Population of Provinces / Cities in the Western Visayas Region of the
Philippines
Province / Cities Population (2010) % Share
Aklan 535,725 8%
Antique 546,031 8%
Capiz 719,685 11%
Guimaras 162,943 2%
Iloilo 1,805,576 27%
Iloilo City 424,619 6%
Negros
Occidental
2,396,309 36%
Total 6,590,888
Data on province wise population is available only upto 2010
Source: Philippine census data available at http://www.census.gov.ph/
There has been a steady increase in the population of Province of Iloilo in the past
decade. The population grew at a compounded annual growth rate (CAGR) of ~
1.50% over the period of 2000–2010. Over the period of 2007-2010, the population
grew at a CAGR of 2.20% - a rate higher as compared to the decadal CAGR. Such
growth in population presents a potential for air transport demand in the Iloilo region
and Iloilo City.
Economy – Western Visayas Region and Iloilo province
Over the last ten years, per capita income of the country grew at a CAGR of 3.80%
reaching PhP 65,884 in 20121
.The economic growth and the resultant growth in per
capita income has helped in increasing the spending power of the national
population. The figure below highlights the economic growth trends in the country.
Figure 4: Philippines GDP growth and split
Source: World Development Indicators, World Bank available at www.data.worldbank.org
The Philippine economy has gradually transitioned from a manufacturing and
agriculture based economy to a services oriented economy. The services sector is
the largest contributor to the country‟s GDP accounting for 57% of the GDP in 2012
as compared to 38% of the same in 1982. Such transition of the economy to being a
1
Source: National Statistics Coordination Board
5.0%6.7%4.8%5.2%6.6%
4.2%
1.1%
7.6%
3.9%
6.6%
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
BillionPhP
Phillipines GDP
GDP % Growth in GDP
38% 45% 52% 57%
39% 33%
35% 31%
23% 22%
13% 12%
1982 1992 2002 2012
Sectorwise contribution to GDP
Services Industry Agriculture

Page 9 of 59
services oriented economy is expected to further enhance the need of air transport
within the country. According to International Monetary Fund (IMF) statistics2
, the
Philippines is considered amongst the emerging markets with economic growth
higher than the average world economic growth3
. The IMF estimates that the
country‟s Gross Domestic Product (at constant prices) has grown at a CAGR of
5.17% over the past ten years reaching PhP 6,312 Billion in the year 2012.4
The overall trend of the national economy of the Philippines has reflected itself in the
economic trends of the Visayas region. The regional economy of Visayas grew at a
CAGR of 5.44% over the period of 2003 to 2012, which is broadly in line with the
GDP growth of the Philippines (5.17% over the same period). Trends in the
economic growth of Visayas are presented in the following figure.
Figure 5: Gross Regional Domestic Product (GRDP) of Visayas
Source: National Statistics Coordination Board, http://www.nscb.gov.ph/grdp/2012/dataCharts/default.asp
The Western Visayas region and the Central Visayas region are the largest
contributors to the regional economy of Visayas, accounting for 32% and 50% of the
GRDP of Visayas region respectively. The GRDP of Western Visayas region is
growing at CAGR of 5.6% which is broadly in line with overall growth in Visayas
region.
Iloilo is home to many industries and has an established agriculture sector. It is a
leading rice producer and is also known as the “food basket and rice granary of the
Western Visayas”. Further, the Province intends to become a major investment
destination for business process outsourcing (BPO) services sector. Some of the key
industries in the region include:
Agriculture
Livestock
Fishery
Tourism
Business Process Outsourcing
Mining
2
GDP at current prices in USD; Source: IMF, World Economic Outlook Database, April 2013
3 In the period 2003-2012, the world economy grew by 3.9% CAGR; Source: IMF, World Economic Outlook Database, April
2013
4
% growth in GDP at constant prices in Philippine Peso; Source: IMF, World Economic Outlook Database, April 2013
6% 5% 5%
7%
4% 3%
8%
6% 6%
0.0
200.0
400.0
600.0
800.0
1000.0
1 2 3 4 5 6 7 8 9 10
PhpBillions
Visayas GRDP % Growth

Page 10 of 59
Iloilo City is being developed as hub for trade, commerce, and industry in the
Western Visayas region and is considered as one of the “next wave” cities in
Philippines. It has gained from the increased BPO industry activities in the country.
Other major industries include telecommunications, utilities, banking & finance, and
BPO. The city also has developed port facilities and infrastructure.
Tourism – Iloilo City and Iloilo Province
Tourism is one of the main industries in Iloilo province and is fast growing. Tourist
arrivals in Iloilo have recorded 12% CAGR in the past 10 years with domestic tourists
increasing at a CAGR of 13% in the past decade as shown in the figure below.
Figure 6: Tourist Arrivals in Davao
Source: DOT and local tourism offices
Some of the major tourist attractions in Iloilo include its heritage spots and old world
architecture such as the following:
Iloilo Bucari
Gigantes Island
Janiuay Cemetery
Imoy Falls
Miag-ao Church
Montinola-Sanson Antillan
House
Mt. Baloy
Nadsadjan Falls
Pan de Azucar
San Dionisio
San Joaquin Church
Sicogon Island
Sta. Barbara Golf Course
0
20
40
60
80
100
0
200
400
600
800
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
ForeigninThousands
DomesticinThousands
Domestic Foreign

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Airport’s Location and Existing Layout
As indicated earlier, Iloilo Airport is located in Cabatuan, Province of Iloilo (Western Visayas region). It is about 17.3 km north-west of
Iloilo City. The existing layout of the Airport is presented in the schematic below.
Figure 7: Existing Layout of Iloilo Airport
Existing Layout

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Iloilo Airport – Historic Traffic Assessment
Over the last 15 years, total passenger traffic at Iloilo Airport has grown from about
0.62 million in 1998 to about 1.87 million in 2013. International operations at Iloilo
Airport commenced recently in 2012 with two (2) International flights on a weekly
basis connecting Singapore and Hong Kong. The historical traffic at Iloilo airport is
presented in the table below.
Table 2:Historic Traffic at Iloilo Airport
Year Passenger traffic Cargo Traffic (in Kgs)
1998 615,577 5,758,825
1999
644,756 6,473,552
2000
695,926 8,433,162
2001
639,512 5,403,378
2002
677,075 8,889,953
2003
681,477 9,262,527
2004
739,584 9,951,699
2005
708,469 10,313,732
2006
864,403 9,921,369
2007
1,002,618 10,104,427
2008
1,073,907 9,360,273
2009
1,324,148 9,331,773
2010
1,498,695 11,820,227
2011
1,707,969 11,601,045
2012
1,862,223 12,961,254
2013 1,870,722 12,667,897
CAGR last 5 Years
9.02% 7.94%
CAGR last 10 years
10.86% 2.72%
Source: CAAP
Comparison of CAGRs of traffic growth over the past 15 years with respect to that of
the past 5 - 7 years, indicate that passenger traffic growth at Iloilo Airport saw a
significant jump in the past 5 – 7 years.
Existing Airport Facilities
Passenger Terminal Building
The passenger terminal at Iloilo Airport is located to the east of the runway. The
building has a total footprint of 6,140 sq. m. and floor-space area of 13,700 sq. m
and consists of three levels:
Ground floor with check-in area and arrivals area
o Ten (10) check-in counters
o Two (2) baggage conveyors, one for domestic flights and one for
International flights
o Six (6) security lanes (with one metal detector and x-ray machine each)
1st
floor (mezzanine level) for offices

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2nd
floor with facilities for departures flow
o Three (3) PBBs (Passenger Boarding Bridges)
The table below details the areas of the existing passenger terminal facilities
dedicated to passenger processing:
Table 3: Existing passenger terminal processing areas
Facility Area
Ground floor
Public concourse 900 sq. m.
Airline ticket desks 41 sq. m.
Security (Entrance) 100 sq. m.
Check-in area 490 sq. m.
Airline offices 88 sq. m.
Immigration check 120 sq. m.
Baggage Reclaim 725 sq. m.
Third floor
Boarding pass check 265 sq. m.
Central Security 60 sq. m.
Gate lounge 1,430 sq. m.
CIP lounge 284 sq. m.
Source: Iloilo Airport team, January 2014
Airside Facilities
The information of the existing airside facilities at the Iloilo Airport is presented
below:
Table 4: Existing Airside Information
# Particular Description
1. Area 188 hectares
2. Runway Orientation 02/20 direction
3. Runway Length 2500 m
4. Runway Width 45 m
5. Runway Strip Length
3, 120 m (for both runway ends 02 and
20)
6. Runway StripWidth 300 m
7. Stopway 60m x 45 m Asphalt
8. Clearway 300m x 150m
9. Taxiway 23 m Asphalt
10. Turning Pads 65m x 65m
11. Apron Area 48,210 sqm
12. Passenger Boarding Bridges 3 Passenger Boarding Bridges
Source: CAAP

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Other Core Airport Facilities
A brief overview of various other core facilities at the airport is given below:
Car Parking
Access to the airport is directly from the Pan Philippine Highway, at the north of
the facilities. The passenger car parking located to the front of the terminal
provides 688 spaces (CAAP 2013).The total area dedicated for car parking in
Iloilo Airport is 21,376 sq. m. and includes 543 parking slots: for passengers
(414 slots), government vehicles, VIP, maintenance and ATC staff, taxi stands,
etc.
Cargo
The cargo terminal building (CTB), with 1,280 sq. m. footprint, is located south of
the terminal. The building is located on the landside/airside boundary providing
air cargo service to Iloilo.
ATC
The control tower and operations building (CTO) is a nine (9) storey, thirty-five
(35) metres high structure located to the north of the passenger terminal. The
first two (2) floors house the operations building with support facilities for the air
traffic controllers. The rest of the floors comprise the control tower. The total
footprint of the facility is approximately 800 sq. m.
Administration
The administration building (ADM) is a two storey building located next to the
CTO building, with a foot print of around 490 sq. m. It houses security and
administrative functions, as well as offices of the management staff of the
airport.
ARFF
The rescue and fire-fighting station (ARFF) is located further north of the CTO
building with direct road to the runway. The total facility consists of a one and a
half storey with a footprint of 485 sq. m. It can accommodate three (3) rescue
fire-fighting fire trucks and one command car, providing category 9 of Rescue
and Fire Fighting Service Standards of ICAO.
Fuel farm
Jet A1 or AVGAS are provided on site by Petron. Although hydrant facilities are
installed, aircraft are refuelled by means of road bridger through mobile filter.
Maintenance and utilities
The maintenance building is located next to the administration building, with
frontage to the service roads of the airside. It is a one and a half storey, and it
accommodates vehicles such as sweeper, mower, tractor and dump truck
workshops.
Sewage treatment plant
The sewage treatment plant (STP) and the material recovery plant (MRP) are
located on the southeastern corner of the terminal area. Apart from the waste

Page 15 of 59
treatment tanks, the sewage treatment plant includes a single storey building
containing the blower room storage, laboratory, and control room.
Power plants
The central plant mechanical (CPM) and central plant electrical (CPE) are
located between the passenger terminal building and the CTO building. The
CPE can generate 2,500 kVA of power to supply the whole airport complex and
its total floor area is 2,077 sq. m. The CPM total floor area is 500 sq. m.
Ground Support Equipment (GSE)
The ULD yard and GSE area are included at each side of the passenger
terminal building.
General Aviation
There are dedicated General Aviation (GA) facilities on site. Due to the location
of the GA facilities, GA passengers could be processed from the GA facilities
without having to go through the main passenger terminal building, facilitating
the separation of GA and commercial operations, and could include services
such as private flights, ambulance services and special cargo flights.
Iloilo Airport Expansion Plans
To address the immediate requirements of capacity expansion at the Airport, the
Government of the Philippines has proposed the undertaking of the expansion of the
passenger terminal building and other developmental works including concreting of
apron, access roads etc. at a total cost of approximately 1 billion PHP. The
construction works are expected to commence around June 2015 and are expected
to finish around January 2016. These developmental works would lead to provisions
of additional capacity in the airport and interested players may take the above plan
into consideration.
Historical Financials
Following are the historical financials for Iloilo Airport:
Table 5: Historical Financials
2010 2011 2012 2013
Total Revenues PHP 222 Million PHP 232 Million PHP 260 Million PHP 270 Million
% of Aero Revenues 88% 88% 88% 87%
Expenses PHP 105 Million PHP 105 Million PHP 126 Million PHP 192 Million

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Davao Airport Background
Davao Airport, also known as the Francisco Bangoy (Davao) International Airport is
the third busiest airport in the Philippines after the Ninoy Aquino International Airport
(NAIA) in Manila and Mactan-Cebu International Airport (MCIA) in Cebu. The Davao
airport is located in Catitipan, Barangay Buhangin, Davao City and has been
operational for more than 15 years.
Davao Airport presently provides both domestic and international connectivity [eight
(8) domestic destinations and one (1) international destination]. Presently,
international connectivity is to Singapore.
Figure 8: Location and Connectivity at Davao Airport
Catchment Area for Davao Airport
Davao Airport mainly caters to a
catchment area including Davao City
and parts of the Davao Region. Davao
Region (designated as Region XI of the
Philippines) is located south east of
Mindanao. Davao Airport serves as
Mindanao‟s gateway to Asia, operating
regular scheduled international flights
to Singapore.
8 domestic destinations
1 international destination
Figure 9: Mindanao

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Davao Region and Davao City
Spread over a land area of 19,671.83 square kilometers, Davao region is surrounded
by provinces of Caraga and Northern Mindanao to its north, Central Mindanao to its
west, the Philippine Sea to its east and the Celebes Sea to its south. Davao Region
is comprised of five (5) provinces and one (1) urbanized city namely:
Davao Oriental – Province
Davao del Norte – Province
Composeta Valley – Province
Davao del Sur – Province
Davao Occidental – Province
Davao City – Urbanized City
Davao Occidental is the newest province in Davao and the 81st
province of the
Philippines, created in January 2014 out of Davao del Sur province to improve
economic conditions and increase development in the region5
.
Figure 10: Provinces and Cities in Davao Region
Davao City is the capital of the Davao region. The total area occupied by Davao City
is approximately 2,444 kms making it one of the largest cities in Philippines. Davao
City is bound by:
Davao Province on the north
Davao Province and Davao Gulf on the east
Davao del Sur on the south
North Cotabato on the west
Over the years, Davao City has developed as a regional trade center for Southern
Mindanao and has become an international trade center for the Southern Pacific
Region.
Population – Davao City and Davao Region
Davao region is the most populous region in Mindanao contributing 20.4% of its total
population and 4% of the population in the Philippines in 20126
. In 2012, the
population of Davao region stood at 4.6 million growing at a CAGR of 2.11%
between 1990 and 2012. The following table shows the population of provinces
within Davao Region as per the Philippine Census of 2010.
5
http://www.gov.ph/2013/01/14/republic-act-no-10360/
6
Source: National Statistics Coordination Board

Page 18 of 59
Table 6 : Population of Davao Region
Province / Cities Population
(2000)
Population (2010)
#
CAGR
Davao Oriental 446,191 517,618 1.5%
Davao del Norte 743,811 945,764 2.43%
Compostela Valley 580,244 687,195 1.71%
Davao del Sur* 758,801 868,690 1.36%
Davao City 1,147,116 1,449,296 2.36%
Total 3,676,163 4,468,563 1.97%
*Includes population of Davao Occidental,
#Data on province wise population is available only upto 2010
Economy – Davao City and Davao Region
The regional economy of Mindanao grew at a CAGR of 5.94% over the period 2003
to 2012, which is higher as compared to the GDP growth of the Philippines (5.17%
over the same period). Trends in the economic growth of Mindanao have been
presented in the following figure.
Figure 11: GRDP of Mindanao
Traditionally, the economy of Davao region was centered on agriculture, with
produce being exported internationally to destinations such as USA, Japan, Korea,
and China. Davao region is one of the largest producer of banana and coconuts in
the country and is also one of the leading producers of coffee. In recent times, the
region has witnessed industrialization and has enhanced its focus on manufacturing
and service sectors as well such as agro-industrial businesses, tourism and
outsourcing. In 2012, the services sector contributed approximately 53% of the
regional economy in Davao with industry and agriculture contributing 29% and 18%
respectively.
The Philippine Development Plan (PDP) identifies Davao City as one of the ten “Next
Wave Cities” in Philippines which have a high-growth potential in the BPO services.
Other emerging sectors in the region are - tourism, health-tourism, construction etc.
12.1%
4.3% 5.2% 7.1%
3.8% 3.8% 5.0% 4.2%
8.2%
-
100
200
300
400
500
600
700
800
900
1,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
BillionPhP
Mindanao GRDP % Growth

Page 19 of 59
Davao Region is also considered a hub of financial services in Mindanao, with
Davao City as the financial center of the region. The Davao Regional Development
Plan (2011-2016) envisages ambitious targets for economic growth and
development in the region targeting a 7.5% growth rate up to 2016. In order to
achieve these targets, the plan proposes a strategy involving:
1. Strengthening Davao‟s industry clusters - implementing the Davao Region
Industry Clusters Development Plan
2. Adoption of modern and appropriate technology to increase efficiency and
productivity
3. Pursuit of Agro-industrial development – by increasing product diversification,
ensuring availability of credit and increasing financial literacy
The plan also emphasizes the importance of Public-Private Partnerships (PPPs) in
order to achieve the economic targets.
Tourism – Davao City and Davao Region
Davao region is one of the faster growing tourism destinations in the country. It has
developed a range of tourism enabling facilities such as hotels, resorts, restaurants,
malls, and medical facilities. The region is also considered a Medical Tourism Hub in
Mindanao with a number of hospitals, health and wellness establishments. Statistics
from the National Statistics Coordination Board (NSCB) indicate that Davao City
witnessed 0.68 million tourist visitors in 2010. The tourist arrivals in Davao registered
an 11% CAGR in the past 10 years as shown in the figure below.
Figure 12: Tourism Arrivals in Davao
Some of the major tourist attractions in Davao include the highest Philippine
mountain peak, the Philippine Eagle, pristine beaches, dive sites and historical
spots. Other important tourism destinations in the region include:
Mount Apo
Wildlife sanctuary at the foothils of Mount Apo
Samal Island
Talicud Island
Aliwagwag Falls
Davao Region also attracts tourists for its festivals like Kadayawan Festival (Davao
City), Musikahan Festival (Tagum City, Davao del Norte), Bulawan Festival
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Page 20 of 59
(Nabunturan, Compostela Valley), Pista sa Kinaiyahan (Sta. Cruz, Davao del Sur)
and Sambuokan Festival (Mati, Davao Oriental).

Page 21 of 59
Davao Airport is located in the Davao region on the island of Mindanao, 12.5km north-east from Davao city center, near the coast.
The existing layout of the Airport is presented below.
Figure 13: Existing Layout of Davao Airport
Existing Layout

Page 22 of 59
Davao Airport – Historic Traffic Assessment
Davao is one of the eleven (11) international airports in the Philippines. Traffic
growth in Davao airport has been broadly in line with the growth trends of total
passenger traffic in the Philippines. Over the last 15 years, total passenger traffic at
Davao Airport has grown from about 0.87 million in 1998 to about 2.79 million in
2013.
The historical traffic at Davao airport is presented in the table below.
Table 7:Historic Traffic at Davao Airport
1998 870,560 26,978,000
1999 953,141 32,242,397
2000 954,744 41,505,298
2001 960,712 46,420,991
2002 972,496 41,323,280
2003 1,004,595 40,036,790
2004 1,151,195 43,772,437
2005 1,044,078 40,244,888
2006 1,336,027 41,543,698
2007 1,534,264 45,537,162
2008 1,691,835 33,451,207
2009 1,991,663 34,389,341
2010 2,229,616 40,806,551
2011 2,629,096 39,781,976
2012 2,791,123 43,862,646
2013 2,795,250 49,829,010
CAGR last 5 Years 8.84% 9.71%
CAGR last 10 years 10.36% 1.45%
Source: CAAP
the last few years, indicate that passenger traffic growth at Davao Airport has seen a
significant jump in the last few years.
The passenger terminal at Davao is located north of the runway and was built in
2003 to replace the old terminal (still located south of the runway). The terminal has
a total footprint of approximately 22,683 sq. m. of floor space. The existing
passenger terminal building is built as a 1.5 level building:

Page 23 of 59
Ground floor with check-in hall (28 check-in counters based on data in the
Area Centre 11 presentation) and arrivals (2 arrival areas, for domestic and
international) with 2 baggage conveyors each
First floor for the departure area
The table below details the areas of the existing passenger terminal facilities:
Table 8: Existing passenger terminal processing areas
Facility Area
Ground floor
Check-in area 780 sq. m.
Baggage Reclaim – Domestic 900 sq. m.
Greeter’s Hall – Domestic 230 sq. m.
Immigration Check 300 sq. m.
Baggage Reclaim – International 750 sq. m.
Customs Area 230 sq. m.
Greeter’s Hall – Domestic 230 sq. m.
First floor
Security Check - Domestic 45 sq. m.
Airport Tax Counters 30 sq. m.
Emigration check 175 sq. m.
Security Check – International 45 sq. m.
Other Facilities
Duty free and concession 40 sq. m.
Ground handler offices 62 sq. m.
Airline offices 956 sq. m.
Pre-departures area 3,888 sq. m.
Concession area Dom 293 sq. m.
Concession area Intl 394 sq. m.
Source: Davao Airport Team
Airside Facilities
The information of the existing airside facilities at the Davao Airport is presented
below:
5. Runway Strip Length 3,000m (for both runway ends 05 and 23)
6. Runway Strip Width 260m (150m north & 110m south)
7. Stopway
120m x 45m (for both runway 05 and 23)
Asphalt
8. Clearway 200m for runway 05 and 300m for runway 23
9. Taxiway 30m Asphalt (52m with shoulders)

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10. Turning Pads 60 x 67.5 m
12. Passenger Boarding
Bridges
4 Passenger Boarding Bridges
Source:CAAP
Car Park
The passenger car parking is located to the front of the terminal and provides
688 spaces.
Cargo
The cargo facility with 5,580 sq. m. of terminal building is located west of the
terminal and has its own landside access road. The building is located on the
landside/airside boundary providing air cargo service to Davao.
ATC
The air traffic control (ATC) tower is combined with the administration building
at its base for a total floor area of 1,405 sq. m. and it is positioned south west of
the cargo facility.
Aircraft Rescue and Fire Fighting
The rescue and firefighting station is located further south of the ATC with direct
road to the runway and another one for the apron. The total facility has a 788
sq. m. building, with 6 fire trucks providing category 9 of Rescue and Fire
Fighting Service Standards of ICAO (Source: AIP September 2007).
Fuel farm
Fuel is provided by 3 different suppliers on site, all of which provide JETA1:
oPetron (Philippines Airlines)
oPhoenix (Cebu)
oLubwell (Air Asia and Sea Air)
There is a Maintenance & FSS building (e.g. Maintenance of CAAP vehicles
and storage of consumables) (899 sq. m.) The others facilities on North West of
the runway are Airfield maintenance Building/Supply (1,277 sq. m.), Central
plant building (776 sq. m.) and the water treatment and storage facility.
Air Force / Military activities
The remaining remote apron area, which used to be the apron of the old
terminal, is located south east of the runway.

Page 25 of 59
Following are the historical financials for Davao Airport:
2010 2011 2012 2013

Page 26 of 59
Figure 15: Province of Negros Occidental
Bacolod Airport Background
Bacolod Airport also known as Bacolod-Silay Airport commenced operations in 2008
and is one of the recently completed airports in the Philippines with modern
facilities.The Airport is located in Silay City, Negros Occidental (Western Visayas
region) and generally caters to traffic for Negros Island - including Bacolod city -
which is one of the most populous cities in the Western Visayas region.
Bacolod Airport presently provides direct connectivity to four (4) domestic
destinations. . The airport does not currently operate any international flights, but is
soon expected to commence international operations.
Figure 14: Location and Connectivity at Bacolod Airport
Source: CAB Schedule
Catchment Area for Bacolod Airport
Bacolod Airport mainly caters to a
catchment area including the Negros
Occidental province and the Bacolod city.
The province is in Western Visayas
Region (designated as Region VI of the
Philippines) is located in central part of
the country.

Page 27 of 59
Western Visayas Region and Negros Occidental Province
As indicated earlier, the Western Visayas region (designated as Region VI of the
Philippines) is located in the central part of the Philippines and lies between the
Visayan and Sibuyan Seas. Spread over a total area of 20,223 square kilometers, it
is the 7th largest region of Philippines. Western Visayas region is comprised of six
(6) provinces and two (2) urbanized cities namely:
Aklan – Province
Antique – Province
Capiz – Province
Guimaras – Province
Iloilo – Province
Iloilo City – Urbanized City
Negros Occidental – Province
Bacolod – Urbanized City
Figure 16: Provinces and Cities in Western Visayas Region
Negros Occidental is one of the six (6) provinces of the Western Visayas region. The
province is located in the western side of Negros Island with a total land area of
7,926.06 square kilometer. The Negros Island is the fourth largest island in the
Philippines. The length of the province – north to south is approximately 375
kilometers. Negros Occidental is bound by:
Visayan Sea in the north
Sulu Sea in the south
Province of Negros Oriental (Central Visayas) and Tanon Strait in the east
Panay Gulf in the west
The Province of Negros Occidental is comprised of six (6) districts namely, First
District, Second District, Third District, Fourth District, Fifth District and Sixth District,
19 Municipalities and 12 cities. Bacolod City is the city capital of the province of
Negros Occidental. Bacolod City lies on the northwestern part of the Province and on
the western side of Negros Island. The Bacolod airport is located in the Silay City
and is approximately at a distance of 5.5 Kms from Silay City and 25 kms from
Bacolod City.
Population – Bacolod City and Negros Occidental Province

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The province of Negros Occidental is the most populated province in Western
Visayas region contributing 36% of the region‟s population. Bacolod City accounts
for a population of approximately 0.5 million and is the most populous city in Western
Visayas. The population of the provinces in Western Visayas region in 2010 is
highlighted in the table below.
Table 11 : Population of Provinces / Cities in the Western Visayas Region of the
Philippines
Province / Cities Population (2010) % Share
Aklan 535,725 8%
Antique 546,031 8%
Capiz 719,685 11%
Guimaras 162,943 2%
Iloilo 1,805,576 27%
Iloilo City 424,619 6%
Negros
Occidental
2,396,309 36%
Total 6,590,888
Data on province wise population is available only upto 2010
The population of Province of Negros Occidental grew at a CAGR of ~ 1.15% over
the period of 2000–2010. The population growth of the capital city - Bacolod City has
been higher as compared to the Province, with the capital city growing at a rate of
1.78% over the period of 2000-2010.
Economy – Western Visayas Region and Negros Occidental province
The regional economy of Visayas grew at a CAGR of 5.44% over the period of 2003
to 2012, which is broadly in line with the GDP growth of Philippines (5.17% over the
same period). Trends in the economic growth of Visayas is presented in the following
figure.
Figure 17: GRDP of Visayas
Western Visayas region and Central Visayas region are the largest contributors to
the regional economy accounting for 32% and 50% of the GRDP of Visayas region
respectively. The Province of Negros Occidental is one of the largest provinces in
Western Visayas and is home to many industries and an established agriculture
sector. The province is one of the largest producers of sugar in the country and is
6% 5% 5%
7%
4% 3%
8%
6% 6%
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Page 29 of 59
known as the “Sugar-bowl of Philippines”. The region houses few of counties‟ largest
sugar mills. Apart from sugar, other the key industries in the region including Bacolod
City include:
Business Process Outsourcing
Tourism
Mining
Agri-business
Tourism – Bacolod City and Negros Occidental Province
Tourism is one of the main industries in Negros Occidental province and is fast
growing. Tourist arrivals in Bacolod are as shown in the figure below. Domestic
tourists have increased at a CAGR of 8.58% in the past decade.
Figure 18: Tourist Arrivals in Bacolod
A few of the tourist locations at Negros Occidental are as follows:
Balay Negrense Museum
Chapel of Cartwheels
Chapel of Sta. Clara
Church of Vito
Hofileña Heritage House
Lacawon Island
Mag-aso Falls
Mt. Kanlaon Volcano
Mt. Malapantao
Negros Museum
San Sebastian Cathedral
Shay Steam Train
St. Joseph the Worker
Church
The Ruins
Tinagong Dagat
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Bacolod Airport is located 5.5 km north west of Silay City in the Province of Negros Occidental (Western Visayas Region). The
existing layout of the airport is presented below.
Figure 19: Existing Layout of Bacolod Airport
Existing Layout

Project Information Memorandum for Six Regional Airports
Page 31 of 59
Bacolod Airport – Historic Traffic Assessment
Over the last 15 years, the total passenger traffic at Bacolod airport have grown from
about 0.45 million in 1998 to about 1.33 million in 2013. The historical traffic at
Bacolod airport is presented in the table below.
Table 12:Historic Traffic at Bacolod Airport
1998 454,453 5,853,262
1999 455,199 6,414,875
2000 578,960 6,267,825
2001 533,139 6,410,424
2002 509,708 7,096,677
2003 523,312 6,391,446
2004 572,368 7,115,391
2005 551,922 6,990,922
2006 663,881 7,442,631
2007 781,454 8,105,036
2008 840,711 8,267,579
2009 1,041,619 11,674,048
2010 1,041,709 11,674,048
2011 1,198,637 12,554,767
2012 1,305,790 10,788,606
2013 1,329,799 11,777,624
Source: CAAP
the past 5 - 7 years, indicate that passenger traffic growth at Bacolod Airport has
seen a significant jump in the past 5 – 7 years.
The passenger terminal at Bacolod Airport is located to the East of the runway. The
building has a total floor area of 6,187 sqm (3,273 sqm of footprint) and consists of
three levels:
Ground floor with check-in area and arrivals area
2nd
floor with administration offices and three departure holding area with 3
PBBs (Passenger Boarding Bridges)
3rd
floor with retail areas, a viewing deck and airport plant rooms

Page 32 of 59
The table below details the areas of the existing passenger terminal facilities
dedicated to passenger processing:
Table 13 - Existing passenger terminal processing areas
Area
Ground floor
Public concourse 1,800 sqm
Baggage inspection area (entrance) 68 sqm
Check-in area 395 sqm
Airline offices 330 sqm
Baggage Reclaim 800 sqm
Arrival lobby 314 sqm
Second floor
Departure hall 90 sqm
Security Check (queuing area in
Departure hall)
36 sqm
Pre-departure lounge 810 sqm
CIP lounge 76 sqm
VIP room 67 sqm
Concession 25 sqm
Roof deck floor (public)
Concession 43 sqm
Observation deck 180 sqm
Source: CAAP
Airside Facilities
The information of the existing airside facilities at the Bacolod Airport is presented
below:
5. Runway Strip Length 3,400m (for both runway ends 03 and 21)
6. Runway Strip Width 315m
7. Stop-way 60m x 45m Asphalt
8. Clearway 640m x 300m for Runway 03
280 x 300m for Runway 21
9. Taxiway 23m Concrete
10. Turning Pads 60m x 67.5m
12. Passenger Boarding Bridges 3 Passenger Boarding Bridges
Source: CAAP

Page 33 of 59
Car Access and Car Parking
Access to the airport is directly from J.Pitong Ledesma Street, north west of the
facilities.The total approximate area dedicated for car parking in Bacolod Airport
is 12,000 sqm and includes more than 400 parking slots: for passengers (350
slots), and ATC staff, taxi stands, etc.
Cargo
The cargo terminal building (CTB), with 1,660 sqm footprint, is located south of
the terminal. The building is located on the landside/airside boundary providing
air cargo service to Bacolod city.
ATC
The control tower and operations building (CTO) is a six (6) storey building
located to the north of the passenger terminal. The ATC and technical staff are
located within the ATC facility. The total footprint of the facility is approximately
140 sqm.
Administration
The administration building (ADM) is a one storey building located next to the
CTO building, with a foot print of around 874 sqm. It houses administration
(Airport managers, finance and HR) as well as concession units.
ARFF
The rescue and firefighting station (ARFF) is located further north of the CTO
building with direct road access to the taxiway B. The total facility comprises a
one and a half storey with a footprint of 738 sqm. The facility can accommodate 3
rescue fire fighting vehicles fire trucks and one command car, providing category
9 of Rescue and Fire Fighting Service Standards of ICAO (Source: AIP, 3rd
May
2012).
Fuel farm
Regarding the fuelling facilities, Jet A1 or AVGAS are provided on request to
Petron.
The Power House Building (PHB) is located southwest of the CTO area and has
a total floor area of 343 sqm. West of this facility is a Permanent Shed Building
(PSB) and to the East is a 154 sqm water tank.
Sewage treatment plant

Page 34 of 59
The Sewage Treatment Plant (SWP) is sited southwest of the General Aviation
facility, with a 122 sqm footprint.
General Aviation (GA)
There are General Aviation facilities on site located South-east of the cargo area,
with a dedicated GA building of approximately 1,000 sqm.
Following are the historical financials for Bacolod Airport:
2010 2011 2012 2013

Page 35 of 59
Laguindingan Airport Background
Development of Laguindingan Airport was conceptualized and studied by the
Government of the Philippines over the late 80s and early 90s. The Airport is on the
northern tip of Misamis Oriental. Laguindingan Airport is understood to have a design
capacity of handling approximately 1.6 million passengers a year. The airport
commenced operations from June 15, 2013, under Visual Flight Rules (VFR).
Catchment Area for Laguindingan Airport
Laguindingan Airport is well positioned to handle the traffic earlier being catered to
by the Lumbia Airport. The Lumbia Airport in the Northern Mindanao region had a
strategic advantage in terms of being located within the Northern Mindanao province
and closer to the cities of Cagayan de Oro and Iligan as compared to the Davao
International Airport. The Laguindingan Airport is approximately 45 kilometers from
Cagayan de Oro city and is approximately 65 kilometers from Iligan city. Thus, it
would be able to cater to Lumbia Airport‟s catchment area.
Northern Mindanao Region
The Northern Mindanao Region (designated as Region X of the Philippines) is
composed of five (5) provinces and two (2) cities classified as highly-urbanized, all
occupying the north-central part of Mindanao island. Table below presents the
names and the population data for the provinces / cities.
Table 16: Provinces / Cities in the Northern Mindanao Region of the Philippines
Province / Cities Capital City Population (2010)
Bukidnon Malaybalay City 1,299,192
Camiguin Mambajao 83,807
Lanao del Norte (excluding Iligan City) Tubod 607,917
Misamis Occidental Oroquieta City 567,642
Misamis Oriental (excluding Cayagan
de Oro City)
Cayagan de Oro City 813,856
Cayagan de Oro City - 602,088
Iligan City - 322,821
Source: Philippine census data available at http://www.caap.gov.ph/web/downloads.htmhttp://www.census.gov.ph/
Economy - Northern Mindanao Region
The economy of the Northern Mindanao region is one of the largest regional
economies in the island of Mindanao. Recently, the economy has been transforming
from being largely agro-based to becoming an industry and services-led economy.
However, agriculture continues to remain a key component of the regional economy,
and has helped the region withstand the slowdown in industry and services sector

Page 36 of 59
during the crisis. Despite the slowdown in the global economy, the region has been
able to attract significant investments in the recent past. Investments in trade,
industry, infrastructure and services have witnessed significant year-on-year growth
over the 2009-2011 periods. Similarly, tourism and export figures for the region over
the 2009-2011 periods continue to show a healthy positive trend.
Northern Mindanao is Mindanao's Trade and Service Center. Its strategic location
offers traders and producers the most cost-efficient transit between Mindanao, the
Visayas, and Luzon, and to major foreign markets like the United States, Japan, and
Europe. Road projects connecting the region to all major points of Mindanao are
understood to be in place. The region has an integrated and complementary
economy. Bukidnon is positioned as the region‟s major food producer; Lanao del
Norte as the industrial center; the Panguil Bay Sub region in Misamis Occidental is
the region‟s fisheries and alternate tourism zone; Camiguin Island is the Tourism
Haven; the Macalajar Growth Area encompasses the areas within Cagayan de Oro
City as the Trade and Service Center; and Misamis Oriental as the Urbanized Agro-
Industrial Center in Mindanao.
Prominent Industries in the Northern Mindanao Region
The Northern Mindanao Region is home to many large industries and banking
institutions. There is a significant presence of Telecommunications and BPO
services sector in the region. Some of the key industries / institutions in the region
include:
Treasure Steel Corporation
Mabuhay Vinyl Corporation
Granexport Manufacturing Corporation
Petronas Energy Philippines, Inc.
Pilmico Foods Corporation
Pilmico Iligan Feedmill
Platinum Group Metals Corporation
San Miguel Corporation-Iligan Coconut Oil Plant
Refractories Corporation of the Philippines
Iligan Cement Corporation
Mindanao Portland Cement Corporation
Holcim Philippines, Inc.
Iligan Bar and Rod Mill
Fort Steel and Cargo
Metrobank
Philippine National Bank
Bank of the Philippine Islands
Land bank
Philippine Veterans Bank
East West Bank
Banco Filipino

Page 37 of 59
Maranao Telephone Company
Bayan Telecommunications Inc
Tourism - Northern Mindanao Region
Northern Mindanao is considered to be the eco-tourism hub of the Philippines
because of its diverse environmental and cultural heritage. The region is composed
of five (5) provinces: Bukidnon, Camiguin, Lanao Del Norte, Misamis Occidental,
Misamis Oriental.
Prominent Tourist Locations in the Northern Mindanao Region
Northern Mindanao region is a popular tourist destination considering the well-known
and famous beaches in the region. Some of the popular tourist destinations include:
Misamis Occidental Aquamarine Park
Hoyohoy Highland Adventure Park, Tangub City
Fort Santiago, Ozamiz City
White Island
Mantigue Island
Katibawasan Falls
Tuasan Falls
Tangub Hot Springs
Ardent Hot Springs
Makahambus Cave and Adventure Park
Gardens of Malasag Eco-Tourism Village
Historic tourist inflow in Northern Mindanao Region is presented below:
Table 17: Historic tourist inflow in Northern Mindanao Region
Year
Foreign
Travelers
Overseas Filipinos Domestic Travelers Total
2000 19,706 2,050 524,452 546,208
2001 16,203 1,038 488,825 506,066
2002 15,898 1,075 533,736 550,709
2003 16,355 942 571,343 588,640
2004 24,690 1,811 674,765 701,266
2005 29,597 3,785 674,425 707,807
2006 46,284 8,947 837,851 893,082
2007 41,226 4,791 1,350,313 1,396,330
2008 42,933 3,732 994,697 1,041,362
2009 39,883 4,819 981,707 1,026,409
Source: CAAP

Page 38 of 59
The historic domestic and foreign tourist inflow is presented in the graph as per the
Northern Mindanao Regional Development Plan 2011-2016, a tourism development
plan presented for Northern Mindanao and prepared by the National Economic
Development Authority at Cagayan De Oro. As per this plan, the region shall
endeavor to be the leading ecotourism destination of the south and to excel in
business and leisure activities with its quality and standard tourism facilities, services
and complementary local products. The following are among the broad strategies,
that are planned to be implemented in this period of six years:
a) Strengthen the tourism hub concept;
b) Entice private sector investments in tourism-related facilities and activities;
c) Reinforce licensing and accreditation of tourism facilities and services groups;
d) Ensure quality service providers in the Laguindingan airport;
e) Pursue collaboration in planning and promoting tourism investments and
destinations;
f) Promote affordable and standard tourism complementary products and
services; and
g) Development and continuing improvements of logistics system and transport
infrastructure (i.e., land, sea and air), through private sector engagement, as
well as public and private partnership (PPP), to better link the region„s
economy to the rest of Mindanao, as well as to Luzon and Visayas.
Based on the progress in the implementation of these initiatives, the tourist inflow to
Northern Mindanao region is expected to grow. The Plan has proposed following
targets in terms of number of visitors in Northern Mindanao region:
A total of 17.02 million visitors for the period 2011- 2016
12 percent annual increase of domestic tourist arrival from 2011-2016
10 percent annual increase of foreign tourist arrival from 2011-2016
0
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Figure 20: Historic tourist inflow in Northern Mindanao Region

Page 39 of 59
Figure 21: Existing Layout of Laguindingan Airport

Page 40 of 59
Laguindingan Airport – Historic Traffic Assessment
Lumbia Airport was amongst the five (5) busiest airports in the Philippines in terms of
passenger traffic. Growth for the airport has been fueled by introduction of low cost
airlines in this region such as Cebu Pacific and AirPhil Express, increasing their capacities
on the major routes connecting to Cagayan De Oro and Butuan. The graph below shows
the correspondence of aircraft movements and passenger traffic at Lumbia airport until the
year 2013.
Over the years, traffic has increased from 0.51 million in 1997 to 1.63 million in 2013.
Historic traffic numbers at the airport are as given below:
Table 18:Historic Traffic at Lumbia Airport
Year Passenger traffic Cargo traffic (in MTs)
1997 516,565 8,621
1998 442,957 9,191
1999 487,405 9,084
2000 470,202 11,613
2001 457,612 7,834
2002 468,884 9,515
2003 472,457 7,832
2004 545,036 9,359
2005 511,854 9,468
2006 606,216 10,379
2007 781,020 12,409
2008 884,671 11,036
2009 1,091,656 16,113
2010 1,301,502 22,245
2011 1,471,432 16,231
2012 1,622,049 21,818
2013 1,638,398 20,127
Source: CAAP
Figure 22: Historic Flight movements and Passenger traffic at Lumbia Airport
0
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Passengers Flights

Page 41 of 59
The existing passenger terminal building at the Laguindingan Airport has a total space of
7,184 sq. m. and this area has been developed in a one and a half level terminal. The
terminal is served by two aerobridges. The floor heights are about 4.75m to 5m. The
overall height of terminal is about 15m, well within the permissible height of 45 m under
transitional slope as per International Civil Aviation Organization (ICAO) norms.
The passenger departure check-in area is on the ground level while the regulatory checks
and security hold area are on the upper level. The commercial areas in the terminal are
limited to small spaces for a snack counter, restaurant, and a business lounge. The arrival
area is on the ground level only and it is served by two (2) baggage conveyor belts.
Airside Facilities
The information of the existing airside facilities at the Laguindingan Airport is presented
below:
1. Area 354 hectare
2. Runway Orientation N 85º 30‟ 12” E
3. Runway Length Single runway of length 2,100 m
4. Runway Width Single runway of length 45 m
5. Runway Strip Width 300 m
6. Taxiways 23 m wide
7. Turning Pad Yes
8. Apron Area 46,150 sq.m.
9. Passenger Boarding Bridge 2 Passenger Boarding Bridge
Source: CAAP
Car Parking
The existing car parks are located in front of the passenger terminal, between the
passenger terminal and fire station building, and between the passenger terminal and
cargo terminal buildings. Car parking areas have been provided for the infrastructure
buildings i.e. the ATC tower, Fire Station, Administration Building, Maintenance
building, Power House Building, and cold water receiving station. The total number of
car parking slots available is 420, of which 380 are for passenger parking.
Cargo
The existing cargo terminal is 350 sq.m. in area. It is located east of the passenger
terminal at a distance of less than 100 m. The terminal is designated to handle both
incoming and outgoing cargo.

Page 42 of 59
ATC
The Air Traffic Control (ATC) Tower Building is located to the west of the Passenger
Terminal Building. The building has an area of 1,139 sq.m. It serves as the control
tower and a technical block. The height of the ATC tower is 36.7 m with the
controller‟s eye at 33.5 m.
Aircraft Rescue and Fire Fighting (ARFF)
The ARFF building is located between the Passenger Terminal building and the ATC
tower. It is a two-floor building and has an area of 553 sq.m. There is a watch tower
over the fire station building.
Admin building
The administration building is located south of the ATC tower and power house. It is
a two floored building with an area of 676 square meters.
Maintenance building
The maintenance building is located west of the administration building. It has a floor
area of 740 sq.m.
Other utilities
The other utilities e.g. Power supply system, Water supply network, Sewerage
network, Storm water drain network are also situated inside the airport.
Following are the historical financials for Laguindingan Airport:
2009 2011
Total Revenues PHP 73 Million PHP 100 Million
% of Aero Revenues 97% 96%
Expenses PHP 117 Million PHP 166 Million

Page 43 of 59
New Bohol (Panglao) Airport Background
The Province of Bohol is a strategic cluster for the National Tourism Development
Strategy of the Philippines, home of unique natural sites and beach resorts. The Province
is currently served by Tagbilaran airport (IATA: TAG – ICAO: RPVT), in complement with
ferry connections to Cebu.
In cooperation with the Japan International Cooperation Agency (JICA), the DOTC has
selected a site on the western island of Panglao for the construction of a new international
airport costing PHP 7.2 billion.
Catchment Area for Panglao Airport
The New Bohol Airport will become a core element in the development of the tourism and
resort industry, allowing the Province of Bohol to compete with popular Asian destinations
in Southeast Asia. The current airport of Tagbilaran has reached its full capacity and is
physically and operationally constrained [hilly surrounding terrain preventing Instrument
Landing System (ILS) operations clearance] to be able to receive direct international
flights and expand the airport capacity. The new facility will remove the limitations
constraining the underlying demand and eventually allow for simultaneous operations of
domestic and international flights.
The technical and physical features of the new facility will allow for international flight
operations and accommodate all short and medium-haul aircrafts (such as A320 family
and B737 family), which today constitutes the majority of operational fleets in Asian
markets. The runway can likewise be extended seaward in the future to handle wide-body
aircraft operations.
Central Visayas Region VII and the Province of Bohol
The Province of Bohol is located in the Central Visayas Region (Region VII). It has a total
land area of 4,820 sq.km. and a population of 1,255,130 (2010). The capital and largest
city, Tagbilaran, has a population of 96,800 (2010) and currently hosts the Domestic
Airport and Harbor, offering ferry connections to major cities in Visayas and Mindanao.
Tagbilaran Airport can only handle domestic traffic due to its operational specifications.
Within the Central Philippines, Region VII represents between 45%-48% of domestic
traffic. The main international airport of Mactan-Cebu and the airport of Dumaguete are
also located in Region VII. The domestic traffic at Tagbilaran has grown from 2% in 2001
to 11% of the Region in 2010 as shown in the table:

Page 44 of 59
Table 21:Historic Domestic Traffic (2001-2010) _ Region VII vs. Total Central Philippines
Year
Damaguete
(Negros)
Mactan
(Cebu)
Tagbilaran
(Bohol)
Total
Region VII
Total
Central
Phil.*
% TAG
vs. Reg
VII
%TAG
vs.
Central
PH
%Region
VII vs.
Central
PH
2001 137,334 1,860,461 39,268 2,037,063 4,241,742 1.9% 0.9% 48.0%
2002 134,877 1,733,273 76,314 1,944,464 4,134,679 3.9% 1.8% 47.0%
2003 152,376 1,850,453 104,934 2,107,763 4,362,619 5.0% 2.4% 48.3%
2004 173,496 1,947,057 159,073 2,279,626 4,965,167 7.0% 3.2% 45.9%
2005 162,915 2,263,777 196,707 2,623,399 5,367,267 7.5% 3.7% 48.9%
2006 188,465 2,467,517 240,176 2,896,158 6,106,246 8.3% 3.9% 47.4%
2007 275,991 2,985,695 344,068 3,605,754 7,477,850 9.5% 4.6% 48.2%
2008 306,182 2,940,830 398,661 3,645,673 7,992,723 10.9% 5.0% 45.6%
2009 360,360 3,835,163 561,774 4,757,297 10,089,418 11.8% 5.6% 47.2%
2010 362,551 4,206,651 572,476 5,141,678 11,543,412 11.1% 5.0% 44.5%
* Comprises Regions IVb, VI, VII and VIII.
Development of Bohol as a Key Touristic Destination
Bohol is among the highest-rated touristic destination in the Philippines, offering unique
natural sites such as the Chocolate Hills, tarsiers and prime beachfronts. The new airport
on the island of Panglao will offer quick access to main resort areas and Tagbilaran.
The Philippine Development Plan (PDP) (2011-2016) provides that the Government shall
“focus its interventions on key areas that are job generating, where the country enjoys
comparative advantage, and with high growth potential.” The tourism sector is among
these key areas, recognized by the PDP as a “powerful driver for economic growth,
infrastructure modernization, local area development, and employment generation.” The
Project will aid in achieving this objective especially because Tagbilaran and Panglao cities
are included in the Strategic Destination Area (SDA). The profile of Tourism (based on the
2010 census) is as follows:
Figure 23: Profile of domestic and Foreign visitors in the province of Bohol (2010)
Domestic
, 69%
Foreign,
31%
Split of Domestic vs. Foreign Visitors
in Bohol (2010)
Europe,
14%
Oceania,
3%
China,
20%
Taiwan,
13%
Japan,
6%
Korea,
9%
Other
Asia, 8%
North
America,
12%
Other
O/D,
15%

Page 45 of 59
Location and Layout of the New Bohol Airport
Existing
Tagbilaran Airport
PANGLAO ISLAND
MAINLAND
BOHOL
Proposed Panglao
Airport

Page 46 of 59
Figure 24: Proposed Layout of New Bohol (Panglao) International Airport

Page 47 of 59
The DOTC has initiated the construction of the New Bohol Airport in2014, with financing
from JICA (Japan International Cooperation Agency). Once completed, the airport will
offer the following characteristics:
Table 22: Proposed Panglao Airport Specifications
Item Specification
Airside - Runway
Runway Orientation 03/21, ILS CAT-I
Length / Width 2,000 m / 45 m / 90,000 m2
Material Asphalt
Blastpad (L x l x H / Surface) 60 x 45 x 2 / 5,400 m2
Paved areas
Passenger Terminal Apron 49,000 sq.m.
Aircraft stands 6-C Aircrafts
Taxiway 25,000 sq.m.
Runway Shoulder 29,000 sq.m.
Taxiway Shoulder 14,300 sq.m.
Turning Pad 6,400 sq.m.
Passenger Terminal Design Parameters
Terminal Concept Linear single-story
Passenger Terminal Floor Area 8,281 sq.m.
Check-in Area 1,594 sq.m. (18units)
Centralized Security 411 sq.. (2 units)
Departure Immigration '56 sq.m. (4 booth)
Departure Lounge 1,370 sq.m.
Arrival Passport Control '177 sq.m. (4 booth)
Baggage Claim 1,431 sq.m. (2units)
Arrival Customs 238 sq.m. (2 units)
Baggage Break down/Make up 566 sq.m.
Government Office 631 sq.m.
Greeter & Well wisher '2,000 sq.m.
Restaurant and Concessionaires 982 sq.m.
VIP Lounge, Circulation & Others 707sq.m.
Other Facilities
Cargo Terminal Area n/a
R&FFF
901 m2 / 3 Fire Fighting Trucks
Maintenance Building
ATC Tower (Height / Type/ Surface)
Power House 903 m2
Administration and Operations Building 1,674 m2
Source: DOTC, JICA
Historical Traffic at the Airport of Tagbilaran
Tagbilaran Airport has experienced a sustained traffic growth in the past 6 years.
Currently, the airport handles only domestic traffic; international travelers reach Bohol
either by connecting flights in Manila or via Mactan, with a fast ferry connection between
Cebu and the city of Tagbilaran. The total traffic has grown by a CAGR of 14.6% in the
period of 2008-2013, reaching 789,800 passengers in 2013.
Figure 25: Historic Flight movements and Passenger traffic at Tagbilaran Airport

Page 48 of 59
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Pax Flights
Table 23:Historic Traffic at Tagbilaran Airport
2002 76,314 1,770
2003 104,934 2,124
2004 159,073 2,294
2005 196,707 2,821
2006 240,176 3,380
2007 344,068 4,997
2008 398,661 5,496
2009 561,774 5,097
2010 572,476 4,790
2011 754,911 4,482
2012 734,045 3,273
2013 789,800 3,514
Source: CAAP
Following are the historical financials for Tagbilaran Airport:
2010 2011 2012 2013

Page 49 of 59
Puerto Princesa Airport Background
Puerto Princesa Airport is the main international gateway to the Province of Palawan, one
of the top touristic destinations in the Philippines, with unique natural sites and resorts
facilities. To cater for the strong passenger growth experienced since 2010, the DOTC is
currently implementing the Puerto Princesa Airport Development Project (PPADP),an
investment program of PHP 4.5 Billion for the construction of the new Puerto Princesa
Airport, to be commissioned in early 2017 with the support of the Government of Korea,.
Having exceeded its maximum passenger capacity, the current terminal facility (located
south of the runway) will be decommissioned and replaced with a new passenger terminal
and apron once available for operations.
Key Role of Puerto Princesa and Palawan in the National Tourism Strategy
The province of Palawan has figured prominently in the last twenty years as a major
tourism destination in the Philippines. In 1991, Northern Palawan was identified as one of
the five (5) major “Tourism Areas” throughout the Philippines for its unique and relatively
undeveloped island offerings (i.e. Calamian Group of Islands, El Nido, Taytay, San
Vicente, Roxas) in the 20-year Philippine Tourism Master Plan (TMP). The Northern
Palawan area offers islands, beaches, diving, ecotourism, and adventure. This position
has boosted since 2012 with the nomination of two (2) of the natural sites of Palawan in
the UNESCO World Heritage Sites list.
The 1991 TMP also recommended that existing, emerging, and potential tourism
destinations be made accessible to at least one “international gateway”. This strategy
would decentralize the concentration of tourists in the Metro Manila-Luzon area which was
the most accessible area in the Philippines at that time because it had the only
international gateway (Ninoy Aquino International Airport-NAIA in Metro Manila) in the
country in 1990.
Region IV-B and the Province of Palawan
Palawan is located in the MIMAROPA Region (Mindoro, Marinduque, Romblon and
Palawan) (also known as Region IV-B). It has a total land area of 14,650 sq.km. for a
population 771,670 (2010 census). The capital, and largest city, Puerto Princesa, also
hosts the only international airport of the province. Besides connections to Manila, Cebu
and Iloilo, and short connections to the northern domestic airport of Busuanga, it also
offers direct international connections to Malaysia and Taiwan (starting 2015).

Page 50 of 59
Table 25:Historical Domestic Traffic (2001-2010) _ Region IV-B
vs. Total Central Philippines
Year
Puerto Princesa
(PPS)
Total Central Phil.*
%PPS vs. Central
PH
2001 188,713 4,241,742 4.4%
2002 147,000 4,134,679 3.6%
2003 194,176 4,362,619 4.5%
2004 267,668 4,965,167 5.4%
2005 265,201 5,367,267 4.9%
2006 280,765 6,106,246 4.6%
2007 388,083 7,477,850 5.2%
2008 477,293 7,992,723 6.0%
2009 584,232 10,089,418 5.8%
2010 822,358 11,543,412 7.1%
* Comprises Regions IVb, VI, VII and VIII.
Since 2001, the airport of Puerto Princesa has grown from 4.1% of Central Philippines7
total domestic traffic to 7.1% in 2010. This share has further stabilized, mainly due to the
congestion that the airport is currently experiencing to be able to absorb the substantial
increase of visitors in Palawan after 2010/2011, following the classification of the Puerto
Princesa Subterranean River and Tubbataha Reef Marine Park as UNESCO World
Heritage Sites, and the Subterranean River being listed as one of the 7 Wonders of
Nature.
Development of Palawan as a Key Touristic Destination
The airport of Puerto Princesa is the key element in the promotion of the region as one of
the top tourism destinations in Asia, potentially competing with destinations such as Bali
(Indonesia) or resort islands in Thailand, and to become a strategic hub in the west of the
Philippines for connections to neighboring countries (Indonesia, Malaysia, e.g. direct
connection to Kota Kinabalu started in October 2013). The profile of Tourism is as follows:
7
Comprises Regions IVb, VI, VII and VIII

Page 51 of 59
Figure 26: Historic Distribution of Tourism in Palawan
Source: Tourism Office of the Province of Palawan
* Figures for 2010 for Puerto Princesa City only are not available.
The increase, and diversification, of foreign visitors in Palawan is showing the potential for
expanding the international passengers (and flights) traffic base once the new airport of
Puerto Princesa is available. Most of the travelers currently transit via airports in the
Philippines8
, and the expanded new facility will offer the possibility to airlines to operate
direct flights from major hubs in Asia and beyond, increasing the prospective revenue for
the airport.
8
They are accounted for as Domestic passenger at the airport but as foreign visitors when considering the
tourism frequentation of Palawan.
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2008 2009 2010 2011 2012
Domestic Foreign
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2011 2012
Origin/Destination of Foreign Visitors in Palawan*
Europe North America Korea China Japan Australia Other O/D

Page 52 of 59
Layout and Specifications of the New Puerto Princesa Airport
The new facilities are built within the current airport area (airport codes IATA: PPS –
ICAO: RPVP). The airport layout is retaining the existing runway, with the relocation of the
passenger and cargo facilities at the north-west end of the airport area. The new airport
will also include apron areas for Military and General Aviation. A plot of land will be made
available on the northern end of the new terminal building, to cater for future expansion,
commercial or parking areas.

Page 53 of 59
Figure 27: Proposed Layout of New Puerto Princesa Airport
Area
Available for
future
terminal
extensions

Page 54 of 59
The new terminal facility and upgrade of the runway are part of the PPADP. Once
completed, the airport will present the following characteristics:
Table 26: Proposed Puerto Princesa Airport Specifications
Item Specification
Airside - Runway
Runway Orientation 09/27, ILSCAT-I
Length / Width / Surface 2,600.8m / 45m / 125,678 m2
Material SMA
Stopway (60m x 60m) 7,200 m2
Holding bay 4,067 m2
Paved areas
Passenger terminal Apron 34,413 sq.m
Aircraft stands 2E + 4C aircraft
Military Apron 17,708 sq.m
ADAC Apron 7,525 sq.m
Taxiway 36,270 sq.m
Runway Shoulder 34,313 sq.m
Taxiway Shoulder 13,287 sq.m
Turning Pad 7,200 sq.m
Total Pavement area 161,983 sq.m
Passenger Terminal Design Parameters
Total Floor Area 12,435 m2
Terminal Concept
Linear;
- Landmark Airport
- Global Standard-Compliant &
Flexible Airport
- Passenger Convenience Airport
- Green Airport
- Safety And Security
Passenger Terminal Floor Area 12,986.27㎡
Check-in Area 1,026.65㎡ (15units)
Centralized Security 272.87㎡ (7units)
Departure Immigration 102.24㎡ (4units)
Departure Lounge 1,928.90㎡
Arrival Passport control 292.29㎡ (8units)
Custom 164.92㎡ (2units)
Baggage Claim 1,788.10㎡ (3units)
Baggage Break down/Make up 880.76㎡
Government Office 123.35㎡
Greeter &Well wisher 1,638.59㎡
Restaurant and Concessionaires 2,113.84㎡
VIP Lounge, Circulation & Others 2,653.76㎡
Other Facilities
Cargo Terminal Area 1,173.55 m
2
ATC Tower (Height / Type/ Surface) 24.15m (Visual Control Room Floor Level)
/ Pentagon Shape / 396.23 m
2
R&FFF (Surface / Capacity) 630.71 m
2
/ 3 Fire Fighting Trucks
Maintenance Building 432.76 m
2
Power House 1,000.74 m
2
Administration and Operations Building 746.55 m
2

Page 55 of 59
Source: DOTC
Historical Traffic at the Airport of Puerto Princesa
Puerto Princesa Airport has experienced a sustained traffic growth in the past six (6)
years, largely fuelled by tourism traffic to Palawan‟s unique resorts and natural sites. The
province of Palawan has recorded in 2012 that 23% of 835,595 visitors are foreign
travelers, from the base of 14,642 visitors recorded in 1992. Palawan has experienced a
CAGR of 22.4% in the last 20 years. This is in line with the increase in passenger
movements at the airport, where total traffic has grown by a CAGR of 22.9% in the period
of 2002-2013, reaching 1,335,825 passengers in 2013 (2-ways).
Table 27: Historic Traffic at Puerto Princesa Airport
2002 147,000 3,795
2003 194,176 5,001
2004 267,668 4,500
2005 265,201 4,745
2006 280,765 3,912
2007 388,083 4,480
2008 477,293 5,070
2009 584,232 5,440
2010 822,536 8,792
2011 986,775 9,294
2012 1,318,766 10,938
2013 1,335,825 13,999
Source: CAAP
0
1,000
2,000
3,000
4,000
5,000
6,000
0
150,000
300,000
450,000
600,000
750,000
900,000
1,050,000
1,200,000
1,350,000
1,500,000
Pax Flights
Figure 28: Historic Flight movements and Passenger traffic at Puerto Princesa Airport

Page 56 of 59
Following are the historical financials for Puerto Princesa Airport:
2010 2011 2012 2013
Total Revenues
PHP 50
Million
PHP 53
Million
PHP 75
Million
PHP 90
Million
Expenses
PHP 45
Million
PHP 55
Million
PHP 60
Million
PHP 61
Million

Page 57 of 59
Scope and Structure of the PPP projects
Introduction
The DOTC and CAAP propose to appoint a private sector proponent under an appropriate
PPP arrangement to undertake the operations and maintenance of the six airports along
with constructing required additional facilities for a defined concession period. The key
objectives of appointing a private sector proponent are:
Increased operating efficiency of the airports;
Increased networking and marketing of the airports;
Improved net financial benefits to government; and
Improved customer amenities.
The details of the scope of project, legal framework for the project and proposed
contractual arrangements are detailed in the following sections.
Scope of the Project
The scope of the Project for the private sector proponent under the PPP arrangement
would cover:
a. Taking-over the operations and maintenance of the existing facilities from CAAP;
b. Expansion/construction of new passenger terminal(s), along with all associated
infrastructures and facilities as per applicable standards;
c. Installation of all the required equipment and associated facilities as per applicable
standards;
d. Provision of required works with respect to the existing terminal (either already in
operations or newly constructed facilities, as in the case of New Bohol (Panglao)
and Puerto Princesa airports), along with all associated infrastructures and facilities
as per applicable standards, to handle operations until the development of the new
passenger terminal(s);
e. Operations and maintenance of the passenger terminals (new and existing, as may
be decided by DOTC) during the entire concession period;
f. Enhancement/development of airside facilities to meet the enhanced scale of
operations at the airport; and
g. Operations and maintenance of all enhanced airside facilities, including, among
others, the apron, runway and taxiway.
The following would be excluded from the scope of the private sector proponent and
CAAP / DOTC would continue to be responsible for:
a. Air Traffic Control and associated services
b. Air Navigation Services and associated services

Page 58 of 59
Legal Framework applicable to the Projects
Republic Act No. 6957, as amended by Republic Act No. 7718 ("BOT Law”), and its 2012
Revised Implementing Rules and Regulations (“Revised IRR”), are the primary legal
framework for Public-Private Partnerships (“PPP”) in the Philippines. The BOT Law
enunciates the policy of the state to recognize the indispensable role of the private sector
as the main engine for national growth and development. It further declares that the
government shall provide the most appropriate incentives to mobilize private resources for
the purpose of financing the construction, operation and maintenance of infrastructure and
development projects normally financed and undertaken by the Government of the
Philippines.
Proposed Specifications of Contractual Arrangements
The sections below provide a brief outline of various aspects that are being considered in
terms of the structuring of the Project. The final details shall be provided as part of the
draft contract during the bid stage after the Pre-Qualification process:
PPP Structure
An Operate-Add-Transfer arrangement is being evaluated / considered for the all the six
airport projects. Under this proposed structure, the private sector proponent shall take
over the operations and maintenance of the airport, undertake immediate expansion of
various facilities and also undertake required capacity augmentation at the airport that
may be required to cater to future demand throughout the contractual term. At the end of
the concession period, the private sector proponent would transfer the airport facilities to
DOTC and CAAP.
Concession Period
A 30 year concession is being evaluated / considered for the all the six airport projects.
Implementing Agency
The implementing agencies for all six airport projects would be DOTC and CAAP. As
highlighted earlier, CAAP would continue to provide Air Navigation and Air Traffic Control
and associated services at the six airports throughout the concession period.
Performance Specifications
DOTC/CAAP proposes to include Minimum Performance Standards and Specifications
(MPSS) in the concession agreement. The private sector proponent would be required to
operate the airport as per such defined MPSS. Further, the private sector proponent would
also be required to undertake capacity augmentation at the respective airports to ensure
compliance with the defined MPSS.
Tariffs at the Airport
When the operation and management of the respective airports will be ceded to the
private sector proponent, DOTC / CAAP will concession the levying of various charges to
the private sector proponent. DOTC / CAAP will state in the concession agreement with
the private sector proponent, the manner by which airport fees and charges will be levied
by the private sector proponent, consistent with applicable laws as well as industry

Page 59 of 59
standards and practices. Broadly, DOTC / CAAP contemplate specifying a base tariff as
identified upfront and also specify tariff increments with reference to a parametric formula.
Incentives
Section 10 of the BOT Law extends to private sector proponents the Investment
Incentives under the Omnibus Investments Code upon registration with the Board of
Investments (“BOI”), depending on the level of capital requirements.
Continuation of Existing Contracts
When the private sector proponent takes over the operation of the airports, subject to final
approvals, it is currently proposed that the existing contracts will be novated by CAAP to
the private sector proponent and once the private sector proponent assumes CAAP‟s
existing contracts, it would have the option to, allow the contracts to expire, renegotiate the
contracts, or terminate the contracts on various grounds, within the boundaries of legal
requirements. The private sector proponent would also be allowed to enter into new
contracts for the provision of services should there be a need to provide additional services
to the airport clientele or should there be additional space to lease out.

PPP Airport Modernization

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