The Department of Transportation and Communications (DOTC) and Philippine Ports Authority (PPA) have prequalified five groups to bid for the 18.99-Billion Davao Sasa Port Modernization Project under the Public-Private Partnership (PPP) Program.

The prequalified bidders for the first PPP port project include Asian Terminals Inc.-DP World FZE Consortium; Bollore Africa Logistics; International Container Terminal Services, Inc.;  Portek International Pte Ltd.- National Marine Corporation Consortium with Toyo Construction Co., Ltd. As contractor; and San Miguel Holdings Corp. – APM Terminals Management (Singapore) Pte Ltd. Consortium with Hyundai Development Company and Hanjin Heavy Industries & Construction Co., Ltd. as contractors.

The private concessionaire will finance 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 ship-to-shore cranes and rubber-tyred gantry.

Under a Build-Transfer-Operate (BTO) contractual arrangement, the private partner will also be responsible in operating and maintaining the modernized port over the 30 years concession period.

The Davao Sasa Port PPP project will be competitively tendered under a two-stage bidding process following the provisions of the Build-Operate-Transfer (BOT) Law and its IRR. Bidder with the highest concession fee payment offer to government will be awarded the project.

The project will transform the Davao Sasa Port into a modern, international-standard container terminal. The expected improvement in port operations will drive down shipping and cargo cost as turnaround time is cut and larger ships can be accommodated.

At the same time the project is seen to support the region’s growing agro-industrial sector, spurring trade and investments and boosting economic growth in Mindanao.