Cerberus’ Subic airport proposal climbs to P7B

THE estimated cost of a proposal by US-based Cerberus Asia Pacific Investments, LLC to manage, operate, and upgrade the Subic Bay International Airport (SBIA) has increased to P7 billion from the previously reported P5.31 billion, according to the Public-Private Partnership (PPP) Center.

The updated project cost was disclosed as the Subic Bay Metropolitan Authority (SBMA) revised the bidding timetable for the Swiss challenge covering the airport modernization project.

According to a bid bulletin dated June 17, the SBMA moved the issuance of instructions to challengers and other tender documents to June 30 from the original schedule of June 17.

“This adjustment ensures that technical specifications, financial parameters, and contractual frameworks are fully refined and comprehensive,” the SBMA said.

The agency added that the extension would help ensure the integrity of the comparative challenge process and maintain a level playing field for all participants.

In April, the SBMA opened the comparative challenge for Cerberus’ unsolicited proposal to manage, operate, and upgrade SBIA.

The project will be implemented under an operate-add-transfer arrangement and covers the rehabilitation of existing airport assets as well as the development of new facilities aimed at expanding capacity and attracting additional locators and tenants.

The comparative challenge period will run for 90 days from the issuance of the challenge documents, the PPP Center said.

Interested challengers may secure the tender documents and instructions beginning June 30 and will be required to pay a participation fee of P1.4 million, or about $23,333.

The SBMA previously said challengers would have until Aug. 17 to submit their comparative proposals.

Under a Swiss challenge, competing proponents are invited to submit bids against an unsolicited proposal. The original proponent is then given the opportunity to match or improve upon the best competing offer.

Cerberus Capital Management, the parent company of Cerberus Asia Pacific, manages approximately $65 billion in assets globally and has investments spanning logistics, infrastructure, technology, and energy.

Cerberus already operates part of the 310-hectare former South Korean-owned shipyard property west of the airport, for which it had previously submitted an unsolicited proposal. — Ashley Erika O. Jose