THE Subic Bay Metropolitan Authority (SBMA) has opened to competing private-sector proposals a P7-billion project to rehabilitate, expand, and operate the Subic International Airport (SIA) under a 25-year concession.
The project entered the comparative challenge stage after SBMA approved an unsolicited proposal from US-based investment company Cerberus Asia Pacific Investments LLC, the Public-Private Partnership (PPP) Center said on Thursday.
‘Through the Comparative Challenge process, the SBMA invites interested and qualified local and foreign private sector challengers to submit comparative proposals for the modernization, expansion, operation, and maintenance of one of the country’s strategically located aviation assets,’ the PPP Center said.
Under the unsolicited proposal process, Cerberus, as the original proponent, may match or improve the most advantageous offer submitted by a challenger. This means that the project has not yet been awarded to a private operator.
The comparative challenge began on April 27, while the instructions to prospective challengers were released on July 31.
Structured as an Operate-Rehabilitate-Add-Transfer arrangement, the project will require the winning private partner to operate and rehabilitate the airport, build additional facilities, and eventually return the assets to SBMA at the end of the concession.
The 25-year concession may be extended subject to performance conditions agreed upon by the government and the private operator.
Much of the airport’s existing structures and interior facilities have deteriorated and will require major repairs, according to the project brief.
The project also includes the extension of the airport’s Runway End Safety Area (Resa) and coordination with the Civil Aviation Authority of the Philippines (CAAP) and the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) on aviation safety and weather services.
‘The Project also includes upgrades, new developments, and the acquisition of equipment to expand airport capacity, improve operational efficiency, and support new service offerings such as commercial cargo and government warehousing operations,’ the PPP Center said.
These include two warehouse buildings with a combined floor area of about 22,400 square meters and a 32,000-square-meter aircraft staging and parking area under the proposed Midway Apron Development.
Located within the Subic Bay Freeport Zone, the airport covers about 1.74 million square meters. It has a 2.7- kilometer runway capable of accommodating large commercial aircraft.
According to the PPP Center, the concessionaire may earn from cargo handling, warehousing, airport charges, commercial leasing, logistics services and other aeronautical and non-aeronautical activities. It will also pay business taxes, airport management fees, and a share of its revenues to SBMA.
It added that SBMA will retain oversight of the airport and assist the private operator in securing permits and coordinating with aviation and other government agencies.
The PPP Center initially valued the SIA project at P5.31 billion when the Cerberus proposal entered the government’s PPP pipeline in 2025, before raising the estimate to P7 billion in the revised bidding timetable.