CAAP Concession

Manual

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I. OVERVIEW

As a government owned and controlled corporation, the Civil Aviation

Authority of the Philippines has an obligation to build its concession program
founded on the principles of fairness, integrity, accountability, and
transparency in order to provide the travelling public with quality, reasonably
priced goods and services in all CAAP owned and operated airports. This
Airport Concession Policy provides a framework for managing and developing
the concession program. As used herein, concessions generally signify
agreements for the operation and maintenance of non-aeronautical business
activities within the airport, including but not limited to food and beverage,
retail, and consumer service privileges within the passenger terminal
buildings, airline business operations, advertisements, transport, porterage,
and communication services, and other business concessions that may be
granted by the CAAP within its airport's premises.

A. Purpose

The purpose of this Concession Policy Manual is to standardize the

application process and to provide direction to the Concessions-in-Charge,
offices and parties involved in this process on contract administration and
governing policies and regulations established and customary to this
Authority.

The CAAP management reserves the right to deviate from this Concession
Policy on any concession matter, for any reason, subject to the necessary
approvals. In the event of any inconsistency between the provisions in any
concession contract and this Concession Policy Manual, the provisions of the
contract shall control.

B. Effective Date

This concession policy and guidelines shall become effective immediately.

This policy will be reviewed and updated regularly as needed.

C. MissionNision Statement

To be able to offer quality and value products and services that exemplifies
the Filipino culture and tradition at its best.

Goals

The goals for the concession policy are as follows:

a. Uniformity in application;
b. Consistent and predictable governing guidelines;

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 c. Provide value and exceptional customer service in response to
customer needs;
d. Maximize non-aeronautical revenue based on customer data and
feedback;
e. Keep our policy up to date and dynamic by introducing new
concepts and services;
f. Innovate concession design to entice and energize customers
through design and concession branding;
g. Attract the best local, regional and national food and beverage and
retail concepts and tenants, and retain "best in class" concessions;
h. Create and maintain a vibrant first-class concession program offering
a range of quality food and beverage, retail and services in a branded
environment, with particular emphasis on local, regional, national and
global brands.

D. DEFINITIONS

As used in this Airport Concession Policy ("Policy"):

a. "ADMS" -Aerodrome Development and Management Service;

b. "Airport Concession Administrator" - designated concession duty

manager in airports;

c. "Allocated Square Meter" - Total amount Concession Program

Space operated and managed by a Concession Operator as
determined in its Contract Agreement;

d. "Business Dev" - Business Development Division under CORPLAN

handling Concession Management;

e. "Company" - is the company name that represents the

Concessionaire;

f. "Concession" - for the purposes of this Policy, a right to operate a

business, including but not limited to food and beverage, retail, and
consumer service privileges within the passenger terminal buildings,
airline business operations, advertisements, transport, porterage, and
communication services, and such other business operations within
the Terminal Complex;

g. "Concessionaire or Concession Operator" - is a person or

business entity who enters into a concession agreement, lease or
sublease to occupy a specified space allocated to the Concession
Program within a specified and assigned Airport, particularly to provide
retail, food and beverage, and other services to its custemers;
 h. "Concession-in-Charge" - Business Development Division;

i. "Concession Privilege Fee" - CPF;

j. "Concession Layout Plan" - CLP;

k. "Concession Program Space" - Rentable and leasable space in a

specified airport allocated to the Concession Program;

I. "Contract Agreement" - a lease , permit, or concession agreement

that gives a concessionaire the right to operate a concession at a
CMP airport;

m. "Corplan" - Corporate Planning Office;

n. "RFP" - Request for Proposal;

o. "Term" - the length of time, including any option years, during which
a concessionaire has the right to operate a concession as provided in
the concession contract;

p. "Terminal Complex" - the landside terminal building and concourse

areas in a specified airport.

II. CONCESSION LEASING

A. Business Development Division as Concession-in-Charge

The CORPLAN will be implementing the direct contracting methodology for its
concession program. The Business Dev will function as the overall manager
of the concession program. Under its direct contracting approach, Business
Dev forges concession agreements with individual concession operator rather
than selecting a master concessionaire or concession developer. To attain
CAAP's goals, CORPLAN will impose a performance management and
development standard with every concession agreement it enters into.
Business Dev will determine to whom the spaces shall be allocated, given,
based on a prepared 'Business Model' approved by CORPLAN Chief.
Likewise, spaces for concessions allocation (i.e. particular spaces for rent to
concession requiring technical assistance) shall be identified and prepared for
such use/purpose by ADMS. Business Dev shall determine parties as
concession operators within ADMS-identified spaces designed for
concessions.

8. Airport Concession Administrator (ACA)

The Business Development Division will assign/designate an Airport

Concession Administrator in each airport for the purpose of communication,
A -

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 administration of policies and contract enforcement in addition to functions
already performed for CAAP. The current Airport Concession Administrator
shall retain this post during the transition or until otherwise relieved of said
duties.

C. Area Center Managers and Airport Managers

The Area Center Manager and Airport Manager will give guidelines to Airport
Concession Administrator regarding concession-airport administrative and
technical matters. Business Dev shall coordinate with the ACMs for their
comments and recommendation on concession applications. The ACMs
and AMs will report to the ODG through Business Dev, problems and issues
not manageable within their control.

D. Other Offices involved

The CAAP engineers will handle, provide and coordinate the technical
requirements and details of the Concession Layout Plan and assigned
concession spaces in all airports with Business Dev and approved
concessionoperator.

The Director General will execute the final approval of the Contract
Agreement between CAAP and the successful concession applicant.

As a frontline handler, the Area Center Manager through the ACA will provide
and coordinate with the concession operator the necessary assistance as
stipulated in the concession agreement. They will forward to Business Dev all
feedback reports and relevant concerns and issues that reach their airports or
areas for evaluation and resolution.
E. Local Business

CAAP prioritizes local businesses to be part of the concession community

giving equal opportunity to compete with large concession operators. It is
CAAP's interest to encourage local business participation in order to stir local
economic growth that have a greater interest in showcasing the area's
business potential and secure the best possible tenants.

Local ownership includes local owners and franchise holders operating

national branded concepts.

F. Public Notice and Consultation

It is CAAP's policy to solicit strong public interest in every airport

concession opportunity. The Business Dev is responsible for
providing public notices
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 through available modes of mass media including, but not limited to
publication in the CAAP website and official social media accounts, on
concession matter and concerns.

Meetings will be occasionally scheduled in order to:

1. Invite specialized types of business to attract other local businesses and

brands, consistent with the approved Business Model;
2. Provide information on concession privileges and opportunity analysis for
reference;
3. Create a forum to discuss the potential risk and issues a concessionaire
encounters;
4. Provide guidance and technical assistance prior to proposal submission;

G. Ownership Limitations

1. No Concession Operator, including retail, food and beverage, and service

providers may own, control, manage or operate more than three (3)
business concessions per airport, regardless of type and space. Furthe,r
no operator may own, control, manage or operate Allocated Square Feet
that exceeds 20% of the total amount of Concession Program Space or
10% of the total amount of Concession Program Space for a particular
Concession Operator's type of concession as determined by Business Dev.

2. When applying or responding to any concession opportunity, it is the

Concession Operator's consenting obligation to provide sufficient
information and offer full disclosure as contained in their Letter of
Application / Request for Consideration as Concession Operator of material
relationships such as: entities owned, controlled or managed by the same
person or entity within the fourth degree of consanguinity or affinity to the
same person or entity; who has entered into a concession agreement,
lease or any other contractual arrangement to occupy space allocated
within the Terminal Complex.

3. No Concession applicant, spouse, relative within the fourth civil degree of

consanguintiy, or its stockholders, directors or officers thereof, related to
any CAAP personnel (regular, contract of service, consultants or job
orders) will be granted a concession lease contract.

4. Concession Program Space is exclusive of (i) mechanical and electrical

space (ii) public restrooms, common areas, stairwells, stairways,
escalators, elevators, public lounges, public cueing space and (iii) storage
or office space.

H. Space Determination

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 The following guidelines will be used in determining Concession Program
Space:

■ LEASED. This category includes Rentable Space in the Terminal Complex

and leased to a Concession Operator pursuant to a Concession Lease
Agreement.

■ QUEUED (Not leased but designated). This category includes Rentable

Space in the Terminal Complex not leased to a Concession Operator but
available for lease pursuant to a Concession Lease Agreement and
designated for one {or more) types of concessions.

■ VACANT. This category includes Rentable Space in the Terminal Complex

not leased to a Concession Operator but may be considered for lease
pursuant to a Concession Lease Agreement or other contractual
arrangement and not already assigned to a subsisting concession operator in-
good standing.

Ill. APPLICATION PROCESS

A. Checklist for regular businesses

1. Letter of Intent - This includes information on the following: type of

business for concession; general products or service; Airport of interest;
size of proposed concession; point of contact and contact details.
2. Business Plan - A standard business plan will be required for every new
concession application. This includes the following: Products or Service;
One (1) year Profit and Loss Statement; Pricing; Design of proposed
concession.
3. Company Profile - A detailed description of company that will be
represented as Concession Applicant. This includes number of years and
experience in similar business; principals or incorporators and businesses
under the company.
4. Location Site Plan - Area Manager through the ACA / Administrator will
forward the location site plan with an indication of the proposed location of
the concession.

B. Checklist for Government Agencies

1. Letter of Intent
2. Business Plan is not required as a rule, but may be specifically required by
CAAP as it deems appropriate.
3. Detailed description of activities for applied space.
4. Space size.
5. List of office equipment to be used.
6. Number and names of personnel responsible to man the space.
7. Memorandum of Agreement between-CAAP and Agency -·--
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C. Checklist for Banks

1. Letter of Intent
2. Business Plan is not required as a rule, but may be specifically required
CAAP as it deems appropriate.
3. Detailed description of activities and services offered for applied space.
4. Space size.
5. List and details of Equipment to be used (with pictures).
6. Contact information of bank personnel responsible for the ATM machine.

D. Checklist for Airlines

1. Business Plan is not required as a rule, but may be specifically required by

CAAP as it deems appropriate.
2. Air Operator's Certificate issued by CAAP.
3. Detailed description of activities for applied space.
4. Space size.
5. List of office equipment to be used.
6. Number and names of personnel responsible to man the space.

E. AFTER INITIAL APPROVAL (applicable to all categories)

1. Permits (Business/Mayor's).
2. Height Clearance (if construction needed).
3. Architectural Plan for new structures.
4. Comprehensive General Liability Insurance for space/location applied.

F. PROCEDURE and PROCESS FLOW

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IV. IMPROVEMENT ON CONCESSION MODEL

Passengers of today have evolved and expect a different and quality

shopping, dining and consumer service experience at reasonable prices
and well-designed shops. Business Dev shall develop a concession model
which aims to adapt to the changing travelling lifestyle of today, which would
require the constant change in the use of space and concession
agreements. Below are the guiding principles in the development of the
concession model.

A. Use of brands

Local brands have always proven to be popular and marketable at airports,

and help create a unique "sense of region". The region designs of Island
Souvenirs, Bongbong's delicacies at Bacolod-Silay and Zubu Chon at Mactan
International are examples of successful local shops that help identify and
differentiate these airports from another.

CAAP believes that a mix of local brands provide the overall balance and
better service that appeals to a wide range of passengers.

B. Concession Performance Evaluation

The greatest information and feedback of the concession program is offered

directly from our customers. Business Dev shall establish a feedback
mechanism through direct or 3rd party surveys and analysis.

Audit and evaluation activities to adapt include:

• Customer comments
• Passenger surveys
• Performance monitoring by Business Dev
• "Secret Shopper" audits
• Internal benchmarking vs performance data (own and other airports)
• Annual program performance report of all of the above

C. Competitive Environment

Passengers and stakeholders benefit from healthy competition between

concessionaires. Customers are assured to experience multiple choices
among brands and services, and help keep prices reasonable.

V. CONCESSION BUSINESS TERMS

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 This section describes the basic business terms which will be incorporated in
requests for proposals and the standard form of concession agreement. It is
also the aim of CAAP that business terms must be balanced to ensure
reasonable pricing, good investments, excellent customer service, and for the
concessionaire, the opportunity to create a successful business and generate
good returns on their investments.

A. Methods for awarding concessions

1. Competitive Proposals. Competitive proposals will be used for

concession privileges where type of service, volume of business to be
generated, quality of services or products, and demonstrated capability
and management can be clearly differentiated among several operators.
The concession will then be awarded following CAAP's comparative
evaluation of each proposal taking into account factors that may affect
safety, security and operational interests of CAAP. Secondary factors may
include economic viability, management track record and business
experience, as well as planned business improvements that may have an
impact on CAAP's operations and interests.

Privileges to be awarded by competitive proposals include:

o Advertising and Display (Management Contract)

o Food and Beverage
o Public Parking (Management Contract)
o Gifts/Specialty Shops/Publication
o Transportation
o Porterage
o Duty Free
o Cargo

CAAP reserves the right to award one or more of the above-described

privilege by bidding rather than competitive proposal.

2. Negotiation. Direct Negotiation will be used where services offered are

covered by patents, copyrights, trademarks, are unique or available
only from a single supplier. In addition, if only one concessionaire meets
the eligibility requirements, CAAP may, at its discretion, negotiate the
concession. Equally, Business Dev determines during a negotiation that
the privilege being negotiated is available from more than one eligible
supplier, then the privilege will be awarded by the proposal procedure or
bidding, as appropriate.

3. Bidding to Specifications. Bidding to specifications will be used for those

concessions where types of service, quality of service or products are
alike or difficult to differentiate among several operators. In bidding to
specifications, the concession will be awarded to the_ bidder that
will
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 provide, within applicable national and local laws, rules and regulations,
the most holistically beneficial proposal to CAAP.

4. Renewals or Extensions with existing operators. As a rule, there will

be no automatic extension or renewal to any concession or service
agreement. Negotiation with an existing concession or operator for
renewal or extension of term will commence with a Request for
Renewal/Extension of Concession to CAAP Business Development
Division, by the Concessionaire/party who entered into contract with
CAAP no more than six (6) months before the expiration of the existing
agreement.

Subject to the foregoing, there is no restriction regarding successive

contracts with the same concessionaire or service provider following a
competitive bid and proposal process.

B. Term

Concession agreements maybe for a fixed term of one (1) year; one (1) to five
(5) years; or ten (1O) years or more, taking into consideration the airport's
safety, security and operational concerns, the comfort and convenience of the
general public as well as available data on cost, investment and other
economic factors.

C. Minimal Required Capital Investment

CAAP through ADMS will establish in the RFP a minimum capital investment
requirement (based on value per square meter of floor space the value of
which is to be determined by the Area Center Manager I his authorized
representative relying on fair market value/available value of lease space in
the same vicinity/ commercial space in a similarly situated and/or
conditioned structure while also reflecting the cost of improvements. Said
improvements as mutually agreed prior to construction must take into
account the Airport's operational, safety, security, structural and aesthetical
interests while being in consonance with the concessionaire's/ tenant's design
standards and operational requirements. The actual cost to construct
improvements including assembly, disassembly costs as well as cost to
return the concession space's condition to its state prior to turnover to the
concessionaire will be solely the responsibility of the successful
concessionaire. Actual costs may exceed the minimum investment
requirement.

The proposed capital investment amount requirement will be set by CAAP in

the concession agreement.

D. Refurbishment Obligation
 Concession agreements that have been awarded for a continuous period
beyond four (4} years, whether due to contract renewal or because the
concession term granted is beyond four (4) years, will require
refurbishment, The Refurbishment obligation could include, but is not limited
to, replacement of flooring, counters, seating and other surfaces, and
excludes ongoing, routine maintenance expenses required of all
concessionaires. The proposals are expected to have the Refurbishment costs
incorporated into its original business plan.

E. Lessee's Space Modification/Construction

Lessee's Space Modification/Construction requiring full demolition of the

existing tenant's space should be based on plans pre-evaluated and
approved by ADMS to ensure that the CAAP building's structural integrity is
not compromised. Concessionaire shall be required to build new construction
in conformity with the Airport's Tenant Design Guidelines and subject to the
review and approval of the Airport as overseen by ADMS or Engineer (Area
Center).

F. Utility Charges

Utility charges are calculated by the Finance Department (central office or

airport) and applied on an annual or monthly basis. Computation will rely on
measured space established in the concession agreement. For
concessionaires with separate meters or sub-meters, charges will be
computed accordingly.

G. Common Use Service Area (CUSA) fee

The CUSA fee is charged monthly and is used to maintain the common areas
such as the restroom, lobby, and other shared spaces that can be used by all
the tenants of the building and its customers. It is computed based on the
tenant's proportionate share on the common areas, subject to the approved
CMP schedule of fees and charges.

H. Garbage Fee Collection

Garbage Fee shall be collected per concession space occupied or leased,

regardless of measurement. Concessionaires must provide their own garbage
bags and garbage segregation will be strictly implemented.

l. Monthly Fee

Monthly fees shall be determined by Business Dev taking into consideration,

among others factors, the previously approved best policy offer. This allows a
prospective applicant to make an,offer for a concession p_§lce, only when the
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 space is VACANT. An offer may be submitted one (1) month prior to the
expiration of the contracted leased space. In this case, the current
Concessionaire is given priority on the proposed space, following established
and updated strategies of the Business Development Division.

J. Advance Rental and Security Deposit

A two (2) months advance monthly rental fee, and two (2) months security
deposit will be charged and collected from the approved Concession
applicant prior to the release of the Lease Contract.

K. Proposal for surety

CAAP may require the posting of a surety as is reflective of applicable

national and local laws, rules and guidelines, as well as industry standards
and practices.

L. Insurance

Comprehensive General Liability insurance is required for all new approved

concession applicants. Insurance requirements are established to address
safety and security concerns of the Airport, passengers, airport employees
and guests, and other tenants of the Airport. Concessionaire/tenant must
present proof of coverage through ·a CGL insurance policy covering location
of applied concession. Policy must be issued no later than the effectivity of
contract. Concessionaire is responsible to keep insurance policy updated
according to the term of its current contract.

M. Approval

The approval of contracts shall be dependent on the investigation

requirement of the concessionaire and the approval of the Office of the
Director General:

1. Made by the Office of the Director General- Up to five (5) year contract;
2. Approval by the Board - more than five (5) year contract.

Contracts where the annual concession fee (inclusive of all other fees and
charges) amounting to ten (15) million shall be approved by the Board,
irrespective of the period/term of lease.

VI. SELECTION PROCESS

A. Minimum Qualifications

All prospective concession operators in the Terminal Complex must

demonstrate and meet the minimum qualifications for the concession
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 established in the RFP documents. The following will be the required
minimum qualifications:

1. Minimum Years of Experience. The minimum years in the ownership,

management and operation of a retail, food and beverage, or service
business specified in the RFP.

2. Financial Capability. The Business Dev will review the information

submitted concerning financial capability (defined as the ability to finance
the improvements and provide working capital necessary to operate the
concession) and may contact prospects to obtain additional informaiton
needed to determine this.

Failure to meet each qualification will result to a rejected proposal without

further evaluation.

B. Proposal Conference & Site Visit

Following the RFP, Business Dev staff or has duly authorized Area
Center/Airport personnel will conduct a pre-proposa l conference and site visit.
The said pre-proposal conference will include the presentation to the
applicant of requirements of the RFP not otherwise made available on-line, or
posted by Business Dev on available mass-media platforms.

Attendance to this pre-proposal conference is encouraged but not mandatory.

Notices for RFPs postings will be announced in the following:

1. CAAP website;
2. Official CAAP social media sites;
3. Airport announcement boards; and
4. Email to interested parties in the concession program .

To some extent, a list of the names and addresses of all contacts or

companies to which a contract document has been issued shall be
maintained. Subsequent changes or addendums to the bid or proposal
documents shall thereafter be made available electronically.

C. Proposal Rejection

Proposals may be rejected or disqualified for any, including, but not limited to
the following reasons:

1. Failure to meet Minimum Qualifications;

2. Failure to provide comptete docu mentation;
3. Conflict of Interest (as stated in #3 of Ownership Limitations);

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 4. Connivance among applicants;
5. Default or termination of other Airport contracts;
6. Unethical and improper contact with any CAAP personnel while acting in
official or personal capacity;
7. Inability to operate the concept or brand as proposed;
8. Omissions or fraudulent statements;
9. Failure to comply with terms and conditions of existing concession
agreements with CAAP;
1o. Unpaid arrears, unresolved monetary over dues, or owed debts under any
previous or existing agreement with CAAP;
11. Failure to disclose all trademark, copyright, licensing, franchise, and other
contractual or property rights; or
12. Other causes as deemed relevant by the Corplan Chief.

D. Evaluation Criteria

CAAP will evaluate the best tenant option for CAAP based on criteria
contained in Part V-A.

Evaluation criteria will also take into consideration the applicants' experience
and qualifications, the proposal's strategic objectives, uniqueness to the
Filipino culture concept, and drive to high levels of customer satisfaction.

E. Evaluation Team

Proposals will be evaluated and scored by the team composed by the staff of
the Business Dev. The Corplan Chief will serve as the chair of team. All
recommendations and evaluation will be submitted to the chair for the final
selection of concessionaire.

F. Interviews and Scoring

CAAP reserves the right, when circumstances merit, to invite the highest
ranked applicants for interviews.

The interview will be an opportunity for the team to ask questions or seek
clarification of proposals. Questions will be provided in advance prior to
the interview. On scheduled date, interviewees may not:

• Bring merchandise, gifts or flyers;

• Introduce additional information not in the original proposal; or
• Alter business terms or proposed concept.

Any team member may revise its initial scoring after the interview. There will
be no separate scoring of interviews and written proposals. Final scoring will
be based only from the evaluation criteria listed in the RFP.
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 Individual team member shall use a 1-5 point scale and % weighingbased
on the evaluation criteria listed in the RFP.

The Team's work is complete when a recommendation is made by the Chair.

Successful proposals and applicants will be informed by Business Dev
through email, and will be responsible for posting results in the CMP website
within 30 days from actual decision.

G. No substitution of brands after award

A concept or brand may not be changed or substituted following the award.

It is the applicant's responsibility to establish a relationship with the brand
owner and have the legal authority to operate the brand or concept prior to
submissionof proposal.

VII. Contract Administration

A. Pricing Approvals

Concession agreements stipulate a pricing ceiling of "SRP plus 10%" on

goods and services sold. Pricing changes require CMP approval. To
simplify the review of pricing changes and request, the following approach
will be adopted: ·

1. New Concessions. Pricing committed by the concessionaire in its

proposal will normallybe in effect for half-year before price increases may
be considered.

2. Pricing Approval. Retail pricing is based upon sampling of product

items. Restaurant pricing requires proposed menu item and price. A
survey will be made of agreed street locations to determine if the "SRP
plus 10%" standard has been met. If a concept is a national brand (e.g.
Island Souvenirs, Jollibee, Bookstore, Globe Telecoms), corporate
pricing may be substituted for the local survey.

B. Customer Service Standards

All Concessions must meet minimum customer service standards that are
outlined in the concession agreement and Airport Rules and Regulations.
The Business Dev staff will monitor compliance with these standards and take
appropriate action when these standards are not met.

C. Liquidated Damages

Non-performance/non-operation of business not due to fortuitous events by

airport tenants including concessionaires will warrant a levy of liquidated
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 damage based on renta,l cost for general maintenance or the area and other
costs attributable to such non-operation.

D. Assignment of Concession Agreement

CAAP has the sole discretion to approve or deny the assignment of a

concession agreement taking into account safety, security and operational
considerations, as well as by forwarding public interest whereby assignment
of concession rights will be the best option available.

E. Termination of Concession Agreement

Concession Agreement may be terminated if there is a substantial breach of

obligations under the lease by both parties. The Concession Operator may
terminate the lease prior to its stated expiration date. CAAP may
automatically terminate a concession agreement once the contracted space is
assigned or subleased by the Concession Operator without CAAP's consent.

Approved for illJPl"tion:

CAP -
r ;Geileral
NGCO I

CERTIFIED PHOTOCOPY
{NOT VALi , , t fri ERASURE ALTEAATJCN)

Cc!ltral R.x.,m1s /11<-hiV•'IS

R oi;;rid•js Off:cer ;aP ivi1;i.io

Page 17 of 26
 ANNEX "A"

Operational Guidelines

Office Hours

The official office hours of CAAP are from 8:00AM until 5:00PM, Mondays to Fridays except
Saturdays, Sundays and Holidays.

Hours of Operation for Concessionaires

Operational hours for concessionaires are the same with the operation of respective airports.

General Guidelines

1. All concession areas, including all equipment, should be cleaned, pleasing and in good
structural and operation condition. Concessionaires shall provide their own trolleys for
deliveries. The cleanliness and usability· of tables and chairs provided by the
concessionaires (including clearing of plates and leftovers) will be the responsibility of
the concessionaire. If this is undertaken by CAAP personnel/service providers, cost for
such undertaking will be charged to the concessionaire.

2. All employees working in each concession should be professionally attired in a manner

·that will not cause unnecessary attention or cause discomfort to the generally accepted
norms and sensitivities.

3. All products, materials and manpower related to the operation of the concession must be
contained within its interior walls or within its assigned area at all times.

4. No person or persons shall solicit money; distribute free samples and flyers, place
signage to promote business in aisles, walkways or midways without prior written
approval from CAAP.

5. CAAP is not responsible for any damage or loss of the Concessionaire's merchandise or
equipment. It is the individual Concessionaire's responsibility to provide insurance on all
merchandise and equipment. CAAP shall be relieved from any liability arising from
loss, damage or destruction of property.

6. A person of authority must always be available to make decisions to any problem that
may occur. If such person is not available, CAAP will make a decision in the best
interest of the public safety, security and/or airport operations.

7. Fees and charges except Air Navigation Charges must be paid directly at the Area
Center or airport where the operation takes place to avoid delay in the recording of
payment transactions and to prevent penalty for late payment of your Area Center
account, in consonance with applicable Administration and Finance Service rules,
regulations, standards and procedures.

Page 18of 26

I (i
 8. Concessionaire shall exercise all measures to stay within their leased area and avoid
loitering particularly in airport security restricted areas. Littering shall also be avoided
to maintain cleanliness of the concession area.

9. Concession personnel are prohibited from engaging in other activities or services aside
from their official duties and responsibilities in furtherance of their concession
operations.

10. Concessionaire must maintain cleanliness of the leased area and its immediate
surroundings and adjacent common areas to provide the free and safe flow of foot traffic.

11. No other business shall be allowed in the concession area other than the granted
privilege.

12. Concessionaire shall report immediately to CAAP any observed foreign object debris
(FOO), stray animals, unauthorized person/s or anything unusual within restricted
areas especially when it may post a potential hazard to safety, security and general
airport operations.

Airline Services

1. Concessionaire shall avoid littering of trash, grease, oil, lubricants or anything that may
damage airport equipment or otherwise endanger the life of airport workers and the
public.

2. Concessionaire shall not use, step, sleep, sit, play and stand on any airport equipment
such as conveyor, weighing scale and other sophisticated airport equipment. Damage to
CAAP facilities and equipment shall be reported to CAAP immediately. Airline personnel
must exercise utmost care on the use of same. If concessionaire is unable to repair
damages, CAAP will repair it and the cost will be charged to the concessionaire.

3. Airline equipment shall be parked and secured at the designated parking areas when not
in use.

4. Concessionaires and its employees are prohibited from engaging in activities like
gambling, sleeping, smoking within restricted area.

5. Posting of slgnage(s) or any information material must be within their concession area,
or as otherwise permitted by CAAP.

6. Airline personnel shall extend necessary assistance to passengers with disability/ senior
citizen/ pregnant women in the use of escalator, elevator or stairs.
7. All coverings and skirting must be of good quality and in good condition. All concession
trailer carts must have professionally designed and illuminated marquees. All stored
stock and equipment must be out of public view or fenced. It is the responsibility of the
concessionaire to provide all such fencing.

Porterage Services

CE TIFIED PHOTOCOPY
{NOT VAli 11/JTH l:RASUR S/Ai..TERATION)
Page 19 of 26

i: :;:.c1: Ar
Cent·al R•: 1,1r.:e-corG ... l';i',.
, -.h,i ,;,n, 1
 1. Porters shall comply with the wearing of proper uniform and ID and other airport policies
as required by CAAP and as stated on the contract of lease agreement.

2. Porters shall extend necessary assistance to the passengers with disability/senior

citizen/pregnant women in the use of escalator, elevator or stairs.

Food and Other Foodstuff Services

1. All sewerage disposal system shall lead to the Sewerage Treatment Plant (STP). If an
airport does not have an STP the following shall be observed:

• No drain hoses will be allowed to be placed in storm drains located on CAAP

property;
• There will be sewers in close proximity to food stands;
• Only gray water hoses are permitted in the sewers;
• Disposing of food, trash, grease or anything other than gray water in the sewers
is strictly prohibited.

NOTE: Cooking grease must be dumped in the sewerage designated barrels only
located around concessionaires' area.

2. All food stands must abide to the governing law on Ecological Solid Waste Management
Act of 2000. (RA No. 9003)

3. Cooking is strictly prohibited inside the pre-departure area.

4. Food concessionaires must observe proper hygiene and sanitation standards in the
handling, storage and preparation of food items and in the maintenance of cleanliness
within their premises.

5. All items and prices must be clearly displayed on their menu.

Transport Services

General Guidelines for Private, GovernmenWIP Vehicles, Tricycle/Single Motorcycle, Cargo

Forwarder Vehicles and Ground Service Equipment

1. Only legitimate transport service providers accredited by relevant government agencies

shall be authorized to operate and offer services within the airport premises.

2. All vehicles entering the airport premises shall park only in areas designated for their
particular service, in accordance with prescribed fees and charges.

3. Request for allocation of parking space for big events such as convention, summit,
anniversary celebration, festival or the like shall be coordinated to the airport
management through written communication at least five (5) days prior to the event to
ensure smooth facilitation of the guest and visitors.

CERTlflED PHOTOCOPY
{NOT VAL 1iliii:-l E,
ASURES/AlTERATICN)
Page 20 of 26

:G!JH \ c:...U_WlAD
R .;01ds Cil Sr ill ··
q
..
fri;ll<7
Cen t ral R,iron1s 1.md f;fr ,hiw s U l' N Jn n
 4. Paid parking concessionaire shall assist the CAAP in the eradication of illegal transport
service. Upon observation of its existence, the concessionaire should immediately report
to CAAP through its Civil Security and Intelligence Traffic Personnel.

5. To regulate vehicle conducting business at the Airport, stickers, markings, permits or the
likes shall be imposed by the CAAP. These materials if issued shall bear, but not limited
to, the area of operations and period covered.

6. Transport operators shall see to it that all drivers are properly screened and have
preferably undergone training at the Department of Tourism and have been issued a
certificate of completion in the form of ID by said Department and countersigned by
LTFRB.

7. Transport operators shall see to it that their transport vehicles are clean, comfortable,
bearing proper marking, required by LTFRB and roadworthy. Unsightly, dilapidated
and/or apparently ill-maintained transport vehicles will not be allowed to fall in line nor
queue at CAAP-designated parking and loading lanes.

8. Transport operators shall provide each vehicle the medicine kit for first aid purposes.

Vehicle Passes/Stickers

Vehicles may apply for vehicle passes for authorized entry to the airport upon payment of
applicable fees and subject to submission and evaluation of the following requirements:

1. Certificate of Registration (CR) and current LTO Official Receipt (OR) bearing the name
of the operator, and Proof of Ownership like; Deed of Sale; Official Receipt for the
purchase of the vehicle.
2. Copy of the vehicle LTFRB Franchise;
3. Certification from the Department of Tourism with the corresponding list of vehicles
registered with DOT;
4. Accreditation from the Department of Tourism (DOT)
5. SEC/DTI Registration
6. Business Permit

Vehicle/Driver Requirements

1. All units must bear prevailing public utility plate.

2. All units must be equipped with an Early Warning Device system.

3. The year when the model is released be based on the date the vehicle is manufactured
as reflected in the body and chassis number; without such date the unit will not be
considered.
4. Original documents must be presented for authentication purposes.

5. Only metered taxi/van/bus/tricycles/jeep drivers with valid driver's license and wearing
prescribed uniform with company ID, issued by LTO and LTFRB shall be allowed to
enter the airport premises to pick up and convey passengers to their destination.

CHn!FIED PHOTOCOPY
Page 21 of26
{m T VAU w ,m !:RASU ES/ALTREATOI NJ
 6. Aircraft Movement Areas (AMA) Drivers & Operators- Must have valid driver's and AMA
licenses, and wear prescribed safety gear while operating within the AMA.

Driver Conduct

1. Taxi drivers while waiting for the passengers are not allowed to sit on the sidewalks
especially fronting the terminal building. Instead, they should wait at their respective
units and wait for the turnover of passengers by their respective transport counter
representative or dispatchers.

2. All drivers while inside the airport premises shall obey its traffic rules and regulations
and maintain cleanliness and order in the airport compound.

3. All drivers shall strictly observe the "NO SMOKING" signs and other directional
signage(s) installed in specific areas of the airport.

4. Driver/s who will be violating the rules, regulations and policies of CAAP shall be dealt
with accordingly by the airport management.

Other Airport Transport Modes

1. Multi-cabs or jeeps being the common means of transportation shall be allowed at any
time during the operations to provide uninterrupted means of transportation to the public.
It should however drop and pick up passengers at designated loading and unloading
areas but not park anywhere in the airport compound.

2. Private Vehicle shall load, unload passengers and park at the designated government
parking area. Vehicle without valid pass or sticker issued by CAAP shall not be
allowed to park therein.

3. VIP vehicles shall park at the designated VIP parking area. It shall afways be closed and
be opened only for parking upon proper coordination with CAAP at lease a day prior to
the intended use.

4. Tricycle/single motorcycle shall be allowed to load/unload and park only at designated

areas.

5. Cargo and Delivery trucks shall be allowed entry at the cargo area at the time the airport
operation/specified time opens. In cases that same arrive ahead of the airport
specified time, it shall not be allowed to enter the airport premises and instead, park
and wait outside.

6. Concessionaire's Service Vehicle shall load/unload/park at CAAP designated areas.

Ground Handling Service

1. Prior to processing of applications for space at the airport, a copy of the AgreemenU
Accreditation between airlines and ground handling services shall be submitted to
CAAP.

CERTiflED PHOTOCOPY Page 22 o f 26

(NOT Vi\U •ill H Ert sum.:
/ALTERATION)

Recorcis Gfik f!f ill

Cent':.! -= er•1 ,-..•" J\,,:.r_..., .., f: i";siN >
 2. All employees shall wear reflectorized vest when entering into the aircraft movement
area (AMA).

3. All Ground Handling Vehicles without beacon and two-way radio communication is
prohibited to enter into the AMA.

4. Drivers shall undergo training on Runway Safety Program to be conducted by Area

Center Safety Officers before issuance of AMA license.

Banking, Communications, Travel and Tours, Massage Services, Internet

1. Posting of signage(s) or any information materials must be within their concession area,
unless otherwise permitted by the CAAP.

2. For communication lines, prior to issuance of work permit and installation, evaluation by
the Engineering Unit of the Area Center shall be required. All communci ation
line installation shall be concurred by the CAAP for recording and appropriate charges .
No work permit to install shall be issued to communication Companies unless
concessionaire's application is concurred by CAAP.

Advertisements

1. Advertisement may be in the form of signboards, displays, billboards, posters,

streamers, flyers, and the like indoor and outdoor, lighted or unlighted. Advertisement
may also be thru LCD/led TV.

2. No political advertisements shall be allowed.

3. The advertisement must be printed in Acrylic, Tarpaulin, Panaflex, or sticker with

appropriate text height and thickness proportion to its size. The appearance, design and
detailed drawings and signage shall be evaluated by the Engineering Unit of the Area
Centers.

4. Any repair work done on the damaged CAAP structure caused by the installation of the
ads is at the expense of the concessionaire.

5. Rental of space occupied is exclusive of electrical consumption.

6. Location either at the wall or floor space (with stand) must be in coordination with CAAP
regulations and compliant to engineering requirements.

7. For LCD/LED monitors, concessionaires shall agree to broadcast on its channels, free
of charge, special broadcast request by the CAAP like public advisory, notice, airport
policies or tourism- related views.

8. The marks, symbols, contents and wordings of the ads must be checked by CAAP
before posting.

CERT!f!ED PHOTOCOPY
(NOT VAUO ..,1i ER- SU,RES/Al
TERATION)
- - -

MlGU.-: A C U\i' IAD 0i

I)
i:c:::oros Of.icar ;n
cen tral R -Of :..r.d '""'H''"'o "' :: ivi i:\f1
Page 23 o f 26
 9. Signage which contains sin products, embarrassing or humiliating words and
provocative pose is strictly not allowed to be posted within the airport premises.

Column Advertisements

1. Only stickers with sintra board must be used. Its height must be no more than 1.20
meters high and its width must not exceed the width of the column.

Wall Advertisements

1. Poster box on aluminum built -up frame with fiberglass/acrylic front cover must be used.
Its dimension must be 1.20 meters high x 0.80 meter wide.

2. Acrylic plastic signs must also be used. Its dimension must be 1.20 meters high x 0.80
meter wide.

3. Tarpaulin/ cloth banner on ¼" thick plywood backing on 1" x 1" wood fixer can also be
used. Its dimension must be 0.60 meter high x 1.20 meters wide (minimum) and 1.20
meters high x 2.40 meters wide (maximum).

Overhead Advertisements

1. Nlighted Panaflex signs on metal sheet assembly with hook and chain must be used.
Its dimension must be 0.40 meter high x 1.20 meters wide.

2. Acrylic plastic signs must also be used. Its dimension must be 0.30 meter high x 0.60
meter wide (minimum) and 0.30 meter high x 1.20 meters wide (maximum).

Hangar. Fuel Depot and Parking Area

1. Concessionaire shall adhere to the safety procedure implemented by CAAP in addition

to the Height Clearance Permit and building code requirement or any national or local
laws, rules and regulation inherent to this type of business operations.

2. Fuel depot concessionaire shall have at least the following: One (1) firefighting/
emergency cabinet measuring four (4) feet x six (6) feet x two (2) feet, containing fire
preventive equipment, such as:

• Two foam type fire extinguisher

• Two fireman suit
• Two sets fireman boots
• Two set fireman gloves
• Two fireman's helmet
• Two fireman's goggles
• Two fireman's axe
CER11f !ED PHOTOCPOY
Government Agencies (NOT VAl wrrn EHASUin: S/AHERATIOlt)
- -tI--:--:-; =- Page 24of 26

111

Cl!:'llr;,! Rcc;;.,d :me Jl.r..;j:a•lf>S Oiv IOll

 1. Government Office whose services are essential to the operation of the airport as
determined by CAAP upon recommendation by respective Airport Manager of the
airports, subject to the approval of the CAAP Board, shall be exempted only from
payments of rentals.

2. Should these offices subsequently occupy additional spaces or areas, they shall pay the
appropriate charges based on the applicable rental fee. Passenger processing area like
the Customs, Immigration and Quarantine (CIQ) counters shall be considered as
government working areas and shall be exemptedfrom any monetary charges.

3. A Memorandum of Agreement between CAAP and Government Agency should be

established prior to occupancy. In case of breakage of electrical lines, telephone, cable
and water pipelines, such government agency shall shoulder the expenses for the repair.

4. Utility consumption should be levied to the concerned agency.

5. Personnel of the concerned government agency shall comply with the wearing of proper
uniform and ID and other airport policies as required by CAAP.

6. Government agencies operating within the Airport shall pay the Authority rentals due,
including electric, water and telephone bills, for the use of office space and working area
which they are occupying or may hereinafter occupy. However, government agencies
whose services are essential to the operation of the airport shall be exempted from the
payment of rentals, electric and water bills due from the area occupied and/or facility
used directly in airport related operations subject to approval by the CAAP Board upon
the recommendat ion of the Director General.

Construction Guidelines

Set-up and Tear Down

1. No concession can move to any location without prior clearance from the CAAP office.
All concession-owners / managers must secure clearance from the CAAP for such
activities during office hours.

2. Work will be done after flight operations or during lull time of the airport . Work permit
application is done three (3) days before the actual work. "NO PERMIT NO WORK".

Construction and Renovation

1. All construction drawings of the proposed structures must be evaluated and concurred
by the CAAP Area Centers/Airport Engineering Unit.

2. All proposed structures shall be required to secure Height Clearance Permit from the
CAAP and Building Permit from the City/ Municipal Engineers Office.

flED PHOTOCOPY Page 25 of 26

{NOT VAL!' ffl-1 ERASURE
/ALTERP.TiON)

r,i;su;=:0 \ c 1.J\ v!AD q N { f

)
f: .3; Cru -s O..rc:ei m
CcnlraJ .ir.on. i . n,J : \f!.:n1 1sUs ivisinn
3. Prior to construction, concessionaire must coordinate with local airport authorities
regarding safety and security.

4. Concessionaire must also submit a detailed construction schedule in order not to disrupt
airport operations during construction.

5. All works shall be in accordance with approved plans and specifications.

Non compliance will be a ground for CAAP Area Centers/Airport Engineering Unit to
stop construction works.

6. All samples of materials must be first submitted to CAAP Area Centers/Airport for
approval prior to installation. Non-submission or submission of substandard materials
will be grounds for CAAP to stop construction works until the concessionaire/contractor
can provide the materials that will conform to the standards of the CAAP.

7. The concessionaire must submit manufacturer's technical data, specifications and

installation instructions of all furniture and machineries to the CAAP Area Centers/Airport
Engineering Unit for concurrence prior to installation.

8. After completion, the proposed structures must be inspected by the CAAP Area
Centers/Airport Engineering Unit prior to turn-over for occupancy.

9. All concession must only operate upon issuance of Sanitary and Business Permits by
the Local Government Unit (LGU).

10. Any works that needs to be repaired must be immediately acted upon within twenty four
(24) hours. If concessionaire is unable to repair, the CAAP will undertake the repair
works and all the cost will be charged to the concessionaire.

11. Renovations or repair on the concession area must be evaluated and concurred by
CAAP Area Centers/Airport Engineering Unit prior to approval by Area Center
Managers.

12. Any issues, contract or claims arising from the interpretation and implementation of this
Manual shall be resolved by the ODG. Appeal maybe had with the Board on final order
or resolution of the Office of the Director General.

Page 26 of 26
 LEASE TERM TABLE
. ;
,1) .3'
.
>

G nilCon lon Type

'
.. . '·.'8aslc: ba1crlptlon
;
c.ap1ta1 lnwstment (In Peto
value) " ' Luse Term
M .. .1•

>= PlS M Above 10 years

-
Concnslonalrn wholnw st on the actual
1-d spat» , Jot,or Infrastructure, •lther
DEVELOPER construction or malnt• nanc. (• .fl• Hangar,
>= PS M but
Cargo,tand/1.(,t•t } 6 years to 10 years
<PlSM

>= PlM but

5 years
! <PSM

>= PSOOT but

Conoessionalrnwho lnllfft on the
STANDARD constrvction and dw. lopm. nt of the sto,-. 3 years
within tlw allott-4 spam.
<PlM

>= P250Tbut
2 years
< PSOOT

Concassionalrnwho /nwst an th•

BASIC c:ottStnlctlon ond dn. lopm. nt of the stall or < P250T 1 year
ldoslc.

7 :c

Republic of the Philippines

CIVIL AVIATION AUTHORITY OF THE PHILIPPINES

- ------
MEMORANDUM CIRCULAR NO.

0 2S -1 7
- - -
FOR ALL AREA/AIRPORT MANAGER
SUBJE CONCESSION GUIDELINES
CT

The primary goal of each Concessionaire_is to provide well-managed, clean and efficient
facilities, services and products to the public at the Airport. To obtain these
goals, all concessions:

1. Shall keep concession areas neat, sanitary, orderly, and free from debris and
trash at all times. Each concession is responsible for the cleanliness and
orderliness within 2 meters of the rented concession space.
2. Shall limit the merchandise display to avoid cluttering. Chillers, display racks,
and other items and materials must be kept inside the rented space.
Passenger thoroughfare must be free from any concession items at all times.
3. Shall provide good, prompt, friendly, courteous and efficient service adequate
to meet all reasonable demands of customers at the Airport.
4. Shall ensure that all food, beverages and offered at the Airport are fresh, clean,
appealing, and of good quality. Offerings for specialized dietary needs
including but not limited to vegetarian, trans-fat free foods and Halal
compliant foods are encouraged.
5. Shall provide fully trained, articulate, polite and qualified staff/personnel
necessary to provide the highest standards of service to the travelling public
and to conduct business in a professional manner at all times. Shall keep
their staff presentable and without excessive jewellery, cologne or perfume.
All staff shall wear name tags and be neatly dressed and/or appropriately
unifonned if necessary.
6. Sba11 maintain friendly, professional and cooperative relationships with all
other concessionaires and businesses at the Airport, and refrain from
engaging in open or public disputes, arguments, disagreements, conflicts or
actions tending to be incompatible to the best interest of the public or the
Airport.
7. Shall submit fully to CAAP authorized personnel for inspections and visits
to ensure adherence to the duly signed agreement between the concession and
the authority.

For your immediate

compliance.
• A

CERT!F!ED PHOTOCOPY
tNOT V/1: WITH ERASl,JRES/ALTE.1R\TION)

M:GUEt.: C. LAPIAO 9 )1, 17

}13,coi ds Qff;Ctl f HI
C,:intr I K a:. i,;.r..d Al'c.hi•o, ..: Ui vi a.;.iQfl

Old MIA Road corner Nlnoy Aquino Avenue, Pasay Cit;y, Metro Man ila,
Philippine s, 1300 Tel: (+632) 9 44-2016 /
www.caap.gov.ph