MANILA, Philippines – International Container Terminal Services Inc. (ICTSI) remains interested in the modernization of the Davao Sasa Port under the public-private partnership (PPP) program, even as the government is looking to pursue the development at a lower cost.

Christian Gonzalez, senior vice president and head of Asia Pacific Region at ICTSI told reporters the listed port operator would still want to participate in the bidding of the modernization of the Davao Sasa Port even at a smaller scale and cost.

“Anything that promotes regional development, as long as it’s sensible from a private sector point of view, we will certainly be interested and definitely participate,” he said.

Felipe Judan, Transport undersecretary for the maritime sector said earlier this month, the government is reviewing the Davao Sasa PPP project.

While the project was initially estimated to be worth P4 billion, the cost increased to P19 billion when it was rolled out by the previous administration as the scope of the deal was expanded.

At a higher cost, the project would involve development of the existing Davao Sasa Port into a modern container terminal which meets international standards for improved trade access to Mindanao.

Under the project, the private partner would be responsible for financing the construction and modernization of the port as well as handle the operations and maintenance of the facility.

Based on discussions for the review of the project, Judan said it was not justified and necessary to undertake the development at a higher cost than initially planned as there are other ports serving Mindanao including the Davao International Container Terminal.

“So what we decided is, I told the PPA (Philippine Ports Authority) board, take a look, reevaluate it and if it’s necessary to modernize it on the basis of the previous plan, P4 billion, then let’s do it,” he said.

He said the Transport department expects to make the final decision on the project by early next year.

ICTSI supports the review being undertaken as the P19-billion project was not considered viable.

“I don’t think the market was properly understood. I think now the DOTr (Department of Transportation) and PPA are taking a more pragmatic and more reasonable approach while still not sacrificing the long term development of the city. But we have to remember that ports are serious infrastructure projects and we have to study the competitive environment, the market, before making a firmer commitment,” Gonzalez said.

ICTSI was among the groups pre-qualified by the previous administration to bid for the project.

Other pre-qualified groups are Asian Terminals Inc. – DP World FZE Consortium; Bollore Africa Logistics; Portek International Pte. Ltd. – National Marine Corp. Consortium; and San Miguel Holdings Corp. – APM Terminals Management (Singapore) Pte Ltd. Consortium.

17 October 2016
By Louella Desiderio