The Department of Transportation and Communications (DOTC) has selected Korea-based Kumho Industrial-GS Engineering & Construction (Kumho-GS) joint venture to design and construct the new Puerto Princesa airport in Palawan, an island province of the Philippines.
The $89.2m project includes the construction of a new passenger terminal building, cargo terminal building, apron, connecting taxiways, a new air navigation system, and other support facilities.
In addition to the engineering, procurement and construction (EPC) contract, Kumho-GS will design the blueprint for the airport in the third quarter of the year, while civil works will begin in the fourth quarter.
The joint venture is already in the process of preparing the detailed engineering design for the airport, and will soon begin moving its equipment and securing various project permissions.
The project is expected to take around 30 months to complete, allowing the DOTC to begin operations in the first quarter of 2017.
Once fully operational, the airport is expected to handle up to two million passengers a year.
DOTC Secretary Joseph Abaya said: "Apart from boosting our tourism sector, this project will also generate jobs, particularly in the infrastructure sector. Overall, the estimate is up to 1,400 total new jobs during construction alone."
The majority of funding for the airport project is through a $71.612m loan from Korean Export Import Bank (KEXIM) that is payable in the next 40 years. The loan includes a grace period of 10.5 years and a concessional interest rate of 0.1% per annum.
In addition to the Puerto Princesa airport, the DOTC was recently awarded a contract for the Mactan-Cebu International Airport, under the Aquino administration's Public-Private Partnership (PPP) programme.
Image: The Puerto Princesa airport is expected to be fully operational by first the quarter of 2017. Photo: courtesy of the Department of Transportation and Communications Republic of the Philippines.