Home Corporate Gov’t seeking bids for 20-year Davao port management deal

Gov’t seeking bids for 20-year Davao port management deal

THE GOVERNMENT is seeking bids for the contract to manage the Davao port for 20 years with a concession fee of at least P8.7 billion. — ICTSI.COM

By Arjay L. Balinbin, Senior Reporter

THE GOVERNMENT is now seeking bidders for the contract to manage the Davao port for 20 years with a minimum concession fee of P8.7 billion.

It has also awarded the P3.9-billion port terminal management contract for the Tagbilaran port in Bohol.

Documents from the Philippine Ports ​Authority (PPA) showed the government is inviting potential bidders to submit letters of intent for the public bidding for the management and operation of the cargo handling, passenger, roll-on/roll-off services (RORO) and other port-related services of the Port of Sasa, Davao.

Under the contract, the operator will also build the port’s physical landside infrastructure, which will cost a minimum of P9.9 billion.

The minimum concession fee for the project is exclusive of all taxes, the PPA said.

The agency said a prospective bidder must not be engaged in any business activity, whether primarily or otherwise, which will prevent it from properly discharging its contractual obligations.

The deadline for the submission of bids and bid opening has been set for May 5.

To recall, Dennis A. Uy-led Chelsea was awarded the original proponent status in 2019 for its unsolicited offer to modernize Davao’s Sasa port.

PPA General Manager Jay Daniel R. Santiago said in September last year that the proposal was still being evaluated by the National Economic and Development Authority.

Bidding out was an option, he also said, because the proponent had concerns about the length of the process. Chelsea Logistics President and Chief Executive Officer Chryss Alfonsus V. Damuy also said last year that the company could “explore any option depending on how it can be repackaged.”

Mr. Damuy had yet to respond to a BusinessWorld query on Monday on whether Chelsea is still interested in the Sasa port.

TAGBILARAN PORT
Meanwhile, the PPA recently awarded the port terminal management contract for the Port of Tagbilaran to the Pasig City-based joint venture of Globalport Terminals, Inc. and GlobalPort Ozamis Terminal, Inc.

The project was awarded at the proposed concession fee of P3.9 billion, exclusive of all taxes.

The PPA is hoping to complete and inaugurate 31 more port projects before President Rodrigo R. Duterte’s term ends on June 30.

RELATED ARTICLESMORE FROM AUTHOR