Gov’t to review Davao port PPP project
THE DUTERTE administration will review and possibly revise the P19-billion Davao Sasa port modernization public private partnership (PPP) deal, which may lead to further delays in its implementation.
Philippine Ports Authority (PPA) general manager Jay Santiago said in a briefing last week that while the project would “definitely” be pursued, up for review were crucial cost assumptions and capacity projections given the stiff opposition raised against the project.
He was referring to concerns raised mainly by local Davao businessmen, some of whom operate seaports that would be marginalized by the Davao Sasa PPP. Questions were also raised about the project’s impact on sea traffic and the lack of certain facilities such as for break-bulk and bulk cargo activities.
“Definitely, the intention is to pursue it. It will be done,” Santiago, the former legal counsel for Philippine Amusement and Gaming Corp., told reporters, citing the project’s commercial and socioeconomic importance.
“However, considering the issues that have surrounded that, my initial discussions in terms of policy with [Transportation Secretary Arthur Tugade] is we have to review that first,” he said. “It has reached a point where it is very convoluted already. Probably, the only way to untangle it is to reset.”
Up for review are the Sasa Port project’s capacity and “magnitude.” Santiago added that it was possible to “cut down” on the project’s cost, which would be shouldered by the private sector. He said the objective was to make the project more “cost efficient.”
It was not immediately certain if the review, and subsequent recommendations and revisions, would require the project to again win the approval of the board of the National Economic and Development Authority, chaired by President Duterte.
Despite issues raised against it, the Davao Sasa PPP has lured five potential bidders. These are San Miguel Holdings Corp.-APM Terminals Management (Singapore) Pte. Ltd. consortium, Enrique Razon Jr.’s International Container Terminal Services Inc., Asian Terminals Inc.-DP World FZE consortium, Portek International Pte. Ltd.-National Marine Corp. consortium, and Bollore Africa Logistics.
