2 companies vie for P17-billion Davao Sasa seaport

Subscribe Now May 22, 2015 at 10:42am

AT least two companies have signified their interest in the P17-billion contract to develop the busiest seaport in Mindanao, the chief of the Public-Private Partnership (PPP) Center said on Thursday.

In a text message, PPP Center Executive Director Cosette V. Canilao listed the two companies that have bought bid documents for the Davao Sasa Port Modernization deal as San Miguel Corp. and Portek International Pte. Ltd., a Singapore-based global port-solutions provider.

The transportation department launched the auction for the contract in April. Interested parties have until June 30 to submit their prequalification documents to participate in the actual tender process. The Department of Transportation and Communications (DOTC) will then meet the qualified bidders separately to hear their side on issues pertaining to the project.

But as early as now, the deal has drawn criticisms from at least one port operator. Hijo Resources Corp.’s chief executive earlier said the project is too expensive at P17 billion. The project will also result in competition against privately owned terminals in Mindanao.

Hijo Resources is the joint-venture partner of International Container Terminal Services Inc. in developing the Hijo Port in Davao del Norte. The Razon-led company earlier said it is not interested in the Davao Sasa contract.

Based on the contract’s invitation to prequalify to bid, the deal involves the “modernization of the existing port and the establishment of dedicated container-handling facilities with an initial design capacity of 1,900 container ground slots to a minimum of 2,7000 container ground slots, comprising of the construction of a new apron, development of a linear quay, expansion of the backup area, provision of container yards, warehouses and the installation of appropriate container-handling equipment throughout a 30-year concession period. “

Currently, the Davao Sasa Wharf has a total area of 18.1 hectares with a quay length of 1,093 meters and a berth dept of -11 meters. The 4.15-hectare container yard size houses 864 ground slots. It has a reefer yard of 0.2 hectares and the largest vessel accommodated at the port has a capacity of 800 twenty-foot equivalent units (TEUs). It has an annual capacity of 550,000 TEUs.

Davao City serves as the main trade, commerce and industry center of Mindanao, and is known to be one of the fastest-growing cities in the Philippines.

The state aims to award the project by December this year. The government has awarded nine contracts since the infrastructure program’s inception in 2010, namely,

the P2.2-billion Daang Hari-South Luzon Expressway project, bagged by Ayala Corp. in 2011;
the P16.42-billion first phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc. as well as the BF Corp.-Riverbanks Development Corp. Consortium;
the P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel Corp. unit Vertex Tollways Development Inc. in 2013;
the P3.86-billion PSIP Phase II contract, partially awarded in 2013 to Megawide and the BSP & Co., Inc.-Vicente T. Lao Construction consortium;
the P5.69-billion Modernization of the Philippine Orthopedic Center project, which went to the Megawide-World Citi Inc. consortium, also in 2013.
the P1.72-billion Automatic Fare Collection System contract, awarded to the AF consortium of Ayala and Metro Pacific Investments Corp. in 2014;
the P17.5-billion Mactan-Cebu International Airport New Passenger Terminal project, bagged in 2014 by Megawide Construction Corp. and GMR Infrastructures Ltd.;
the P64.9-billion Light Rail Transit Line 1 Cavite Extension deal, awarded in 2014 to Light Rail Manila Consortium of Ayala and MPIC; and
the P2.5-billion Integrated Transport System Southwest Terminal, won by Megawide and partner Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy Sr. in January.

It intends to plug the gap in the country’s transportation facility in the next decade by rolling out massive infrastructure projects that are seen to spur economic growth.

Source: businessmirror.com.ph

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