Gov’t won’t extend deadline for rehabilitation of Manila North Harbor

MANILA, Philippines—The government has ordered the Romero-led Manila North Harbour Port Inc. (MNHPI) to stick to the terms of its concession to develop the domestic cargo and passenger terminal in Tondo, or risk having its contract revoked.

The Philippine Ports Authority (PPA) board, in a resolution in June, threw out MNHPI’s request for an extension of the deadline to complete the first phase of the Manila North Harbor development plan.

The first phase involves redesigning the 10-pier site into a three-terminal port with wider beds having capacities five times higher than the existing structures. The company wanted the deadline moved to 2017, instead of the 2013 data on its contract with the PPA.

But “2017 is way beyond the three-year completion date as provided in the terms of reference for the modernization of the Manila North Harbor and as committed by MNHPI in its bid proposal,” the PPA board said.

“The commitment for the development of Manila North Harbor is one of the principal undertakings of MNHPI and the major factor considered by the PPA in entering into the contract with the former,” the PPA board said.

MNHPI earlier argued that because its takeover of the dilapidated facility was delayed by a year, the company should be given more time to finish its work. The company said it would start work on the first phase of the modernization by 2012.

The PPA said it would only give MNHPI three years to complete the first phase of the facility’s modernization.

The PPA said extending the project phase would mean a breach in contract by MNHPI, which would lead to the scrapping of the P14.5-billion deal.

MNHPI, originally a consortium between Harbour Centre Port Terminal Inc. and the Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC), won the 25-year concession for the facility in August 2009.

However, the company was only able to take over the facility a year later due to labor problems. Pangilinan’s group also earlier divested from the venture after failing to wrest control from its partner.

San Miguel Corp. has since replaced MPIC in the venture. The diversifying conglomerate now owns 35 percent of MNHPI.

The master plan for North Harbor—the country’s busiest but most inefficient domestic port—was drafted together with experts from Singapore and the Netherlands. The plan covers the existing three passenger terminals and a grain terminal and oil depot of San Miguel Corp.