Philippine Government to review Davao port PPP
The Government of Philippines will review the development of the Davao Sasa Port in Philippines PPP project. This could carry further delays in its implementation. The total cost of the project is estimated at PHP19 billion (US$404 million).
The project has raised strong opposition among local businessmen who operate other seaports that would be marginalized by the new Davao Sasa PPP. There were also questions about the impact on sea traffic and the lack of facilities such as for break-bulk and bulk cargo activities.
In July 2015, DOTC received qualification documents to carry out the project. Finally a total of five groups were shortlisted for the project:
- San Miguel Holdings Corp. - APM Terminals Management (Singapore) Pte. Ltd. consortium,
- port tycoon 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.
In January, Portek International Pte. Ltd. and National Marine Corp. withdrew from the tender process for the project. Details regarding this decision were not disclosed.
The project's scope encompasses the construction and modernization of the existing port including the new apron, linear quay, expansion of the back-up area, container yards, warehouses, and the installation of new equipment like seven gantry cranes and 13 rubber-tyred gantry. The dedicated container handling facilities will have an initial design capacity of 1,900 container ground slots to a minimum of 2,700 container ground slots. It will have an annual capacity of 1.2 million 20-foot equivalent units (TEUs).
The project will be developed on a design, build, finance, operate and maintenance (DBFOM) basis. The concession contract will have a period of 30 years.
The Development Bank of the Philippines and the International Finance Corporation (IFC) are acting as the transaction advisors to DOCT for the two-stage bidding to be conducted in accordance with the build-operate-transfer (BOT) Law.
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