Air traffic control next on tech tycoon’s radar

MANILA, Philippines — Tech tycoon Dennis Anthony Uy has proposed a P30-billion plan to manage the country’s air traffic in what could be his biggest government project yet.

His Comclark Network and Technology Corp. is courting the government to approve its P29.82-billion bid to operate and maintain the country’s air navigation facilities.

And the good news for Comclark is that the Civil Aviation Authority of the Philippines (CAAP) seems interested in the project, deciding in August to proceed with the detailed evaluation, according to the website of the Public-Private Partnership (PPP) Center.

Prior to this, the PPP Center checked the legal compliance of the proposal before endorsing it to CAAP for its own review.

If the proposal is deemed satisfactory, CAAP can award Comclark the original proponent status, giving it advantage to match comparative proposals later on.

Comclark, which is also the parent of Converge ICT Solutions Inc., wants to build new facilities for the communications, navigation, surveillance and air traffic management (CNS-ATM) of the Philippines. The project will be undertaken through a design, build, finance and operate scheme.

In pursuing the CNS-ATM concession, Comclark plans to support air traffic safety by investing in latest equipment and scaling up redundancy measures.

If Comclark lands the project, it has to basically avert a repeat of what happened on New Year’s Day in 2023, when Manila vanished from international airspace for hours, causing flight delays for more than 56,000 passengers.

On that day, CAAP suffered an electrical problem within its CNS-ATM, forcing airlines to push back schedules and divert flights that were already up in the air.

Since then, the government has started considering the option of turning over the CNS-ATM to a private operator, acknowledging that CAAP is running short in capital and personnel. However, the Department of Transportation (DOTr) is still deciding how best to proceed with the idea.

Transportation Undersecretary Roberto Lim told reporters the DOTr may firm up a decision next year. Lim said the agency is waiting for the World Bank to finish a study on the viability of privatizing air traffic control.

Even though there is an unsolicited proposal for the project, Lim said the DOTr may still choose to do a solicited bidding to encourage as many proponents as possible.

He also believes the Philippines lacks domestic players that can run air traffic control, as he dangled the idea of pitching the project to a foreign investor.

“There is no local company to our knowledge that has the experience of air traffic management. We would have to look outside to team up with a local company. It could be a telecom company, it could be a technology company,” Lim said.

Right now, the DOTr is looking at every option it has to modernize air navigation facilities. Lim said legislators may create a separate authority tasked to handle the CNS-ATM, or the DOTr may sign a joint venture with the private sector similar to Canada, England and New Zealand.

The target is to strip CAAP of some of its duties that prevent the agency from focusing on its role as regulator of airlines and airports. In Congress, initiatives are underway to establish new aviation agencies like the Philippine Airports Corp. and the Philippine Transportation Safety Board.

Until all of this is resolved, Comclark would have to wait for the government to come up with a final policy before it can expect a clearer direction for its unsolicited proposal.

Comclark, the flagship venture of the Uy couple, was formed in 1996 to provide internet services in Pampanga, until in 2007 the husband and wife branched out by founding Converge.

Comclark offers a suite of connectivity services, such as satellite reach and satellite on the move, and its broadband unit Converge is dipping its toes in emerging tech, such as data centers.