Gov’t bidding out P17-B port project

THE GOVERNMENT is seeking bidders for the P17-billion Davao Sasa Port project in Southern Philippines in a deal that aims to modernize the seaport into an international-standard facility, the Department of Transportation and Communications said in a published invitation.

The project, which is expected to draw large port operators in the country and possibly overseas, is the first seaport public private partnership deal being rolled out under the administration of President Aquino. The DOTC invite indicated that the instructions to bidders would be made available starting April 14, 2015.

The bidding winner will develop, operate and maintain the port project for 30 years, the DOTC said.

The invite showed that the modernization project covered the improvement of the existing port and the establishment of “dedicated” container handling facilities with initial design capacity of 1,900 container ground slots up to a minimum of 2,700 container ground slots.

It also includes the construction of a new apron, development of a linear quay, expansion of the back-up area, provision of container yards, warehouses and the installation of appropriate container handling equipment.

“The project will involve the development of the existing Davao Sasa Port in Davao City into a modern, international-standard container terminal that will improve trade access to Mindanao and the Philippines by providing a dedicated containerized port in the region,” information on the PPP Center’s website showed.

“This will, in turn, support the region’s growing agro-industrial sector, spurring economic growth in Mindanao,” it added. Davao City is a primary trade and tourism hub in Mindanao and is considered one of the country’s fastest growing cities.

The DOTC added in its bid invite that the Davao Sasa modernization project would be implemented in two stages. This means bidders will first need to be pre-qualified before they are allowed to submit technical and financial offers for the PPP deal.

The department added that the auction is open to interested Filipino and foreign participants.

The World Bank of the Philippines and International Finance Corp. were earlier tapped by the DOTC and Philippine Ports Authority as transaction advisors for the PPP deal. Miguel R. Camus