The government is seeking bids for a 20-year Davao Port Management Agreement

The government is seeking bids for a 20-year deal to operate the port of Davao, with a rebate of at least P8.7 billion. – ICTSI.COM

By RJ L Balinbin, Senior Reporter

The government is now looking for bidders for a contract with a minimum fee of 8.7 billion P8.7 billion to operate the port of Davao for 20 years.

It also awarded P3.9-billion port terminal management contracts for the port of Tagbilaron in Bohol.

Documents from the Philippine Ports Authority (PPA) show that the government has provided potential bidders with cargo handling, passenger, roll-on / roll-off services (RORO) and other port-related services at Sasa Port, Davao.

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

The minimum discount fee for the project excludes all taxes, the PPA said.

The agency said a potential bidder should not be engaged in any business activity, initially or otherwise, which would prevent it from properly fulfilling its contractual obligations.

The deadline for submission of tenders and opening of bids is May 5.

To recall, Dennis A. Chelsea, led by Weir, was given the status of key proposer in 2019 for an unsolicited proposal to modernize Davao’s Sasa port.

PPA general manager J. Daniel R. Santiago said in September last year that the proposal was still being evaluated by the National Economic and Development Authority.

Bidding was an option, he added, because proponents were concerned about the length of the process. Chris Alphonsus V Damouy, president and chief executive officer of Chelsea Logistics, also said last year that the company could “explore any alternative, depending on how it is repackaged.”

Mr. Damuy had a reaction The commercial world The question on Monday is whether Chelsea are still interested in Sasa.

Port of Tagbilaran
Meanwhile, PPA recently awarded Port Terminal Management Agreement to Globalport Terminal, Inc. and Globalport Ozamis Terminal, Inc., a joint venture of Passig City, a port terminal for Tagbilaran.

The project was paid P3.9 billion in proposed discounted fees excluding all taxes.

The PPA expects to complete and inaugurate 31 more port projects before the term of President Rodrigo R. Duterte expires on June 30.

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