The Philippines has a long history of
underinvestment in the infrastructure sector coupled with a weak maintenance
culture for the existing infrastructure. Davao Airport, the third largest
airport in the country (after Manila Ninoy Aquino International Airport and
Mactan-Cebu International Airport) in terms of passenger traffic is the gateway
to the Mindanao region and is currently operated by the Civil Aviation
Authority of the Philippines (CAAP). The region has experienced rapid
urbanization and traffic has grown to 4.5 million passengers in 2019
(surpassing design capacity of 3.8 million), before the COVID-19 pandemic.
During the COVID-19 pandemic, passenger traffic went down to as low as ~500,000
passengers in 2021 but has then rebounded to ~2.7 million passengers in 2022
and ~3.4 million passengers in 2023. This passenger growth is expected to
continue in the coming years.
With the airport approaching its design capacity,
this will result in congestion and operational inefficiencies. The airport has
not had any major refurbishment in more than 20 years, which further contribute
to the operational inefficiencies in the airport. Considering the investment
and operational expertise this airport needs, along with government’s intention
to explore the PPP modality given the tight fiscal space it has, the use of a
PPP modality for Davao airport will help increase the airport capacity,
increase operational efficiency, and promote economic development for Davao
city and the wider Mindanao area.
The International Finance Corporation (“IFC”) has
been approached by the Philippines Department of Transport (“DOTr”) to act as
lead advisor in the structuring and implementation of a Public-Private
Partnership (“PPP”) for Davao Airport, with the possibility of integrating up
to three regional airports in the Philippines into the Davao Airport
transaction. (the “Project”).
IFC is looking to hire an international technical
consultant (the “Consultant”) with specialized experience in airport development
and operations, to provide technical support during due diligence, transaction
structuring, and tender process implementation. This support relates to all
technical and economic aspects of the Project, including air traffic
forecasting, airport planning, operations and management, airport
infrastructure and equipment, airport financing, aviation safety, economic
analysis of infrastructure projects, cost estimation, and PPP procurement. The
Consultant should possess experience in the airport sector and have presence
and experience in Philippines and the South-East Asia region. Familiarity and
experience with IFC Performance Standards, World Bank’s Environmental &
Social Framework and IFC General Environmental, Health & Safety Guidelines
is also required.
Interested firms are encouraged to submit the
Express of Interests (EOI) through the procurement portal. A detailed Terms of
Reference will separately be provided when the Request for Proposals (RFP) will
be launched.