MANILA, Philippines – The Department of Transportation and Philippine Ports Authority (PPA) are reviewing the Davao Sasa Port Modernization project as the new government intends to pursue the deal.
“I think the intention is really to proceed with the development of the port. However, considering the issues that have surrounded that, my initial discussion in terms of policy with (Transport) Secretary (Arthur) Tugade is to review that first and let’s see because it has reached a point where it is very convoluted already,” PPA general manager Jay Daniel Santiago said.
The project involves the development of the existing Davao Sasa Port in Davao City into a modern container terminal which meets international standards.
Under the terms released by the previous administration for the project, the government and winning bidder would have a 30-year cooperation period for the project.
The winning private firm will be responsible for funding the construction and other development works at the port including the new apron, linear quay, expansion of the back-up area, container yards, warehouses, and the installation of new equipment like ship-to-shore cranes and rubber-tyred gantry.
The private partner will likewise be responsible in operating and maintaining the port.
Santiago said the review would look into whether the project could be pursued based on details from the previous administration such as projected cost and volume or there would be a need to make some adjustments.
“But definitely, the intention is to pursue it. It will be done. It’s just a matter of how big or how small the project will be,” he said.
He said the project is considered to be critical to the development of Davao and the Mindanao region.
Based on a study of the International Finance Corp. and the Development Bank of the Philippines, the modernization of the Sasa Port is expected to address the projected six percent annual increase in container traffic in the Davao Region in the coming years.
18 July 2016
By Louella Desiderio
