In Port News 22/05/2015
At least three firms have expressed interest to bid for the P17-billion Davao Sasa Wharf Port Modernization Project.
Diversifying conglomerate San Miguel Corp., Portek Systems and Equipment Pte. Ltd. of Singapore, and Davao International Container Terminal have bought bid documents as of yesterday, according to Atty. Christine Antonio of the Public-Private Partnership (PPP) Center.
The PPP Center and the Department of Transportation and Communications (DOTC) will meet bidders interested on the 30-year modernization and concession of Davao Sasa Wharf Port, the country’s main port for shipping bananas, one of the Philippines’ biggest agricultural exports.
SMC subsidiary Petron Corporation has a stake at Manila North Harbor Port Inc., which holds the concession of the Manila North Harbor. Meanwhile, Portek is a contractor of the Philippine Port Authority (PPA), which currently operates the Davao Sasa Wharf Port. Finally, DICT is a joint venture of between Anflo Management and Investment Corporation (ANFLOCOR) and Dole-Stanfilco, the leading producers and exporters of fresh Cavendish bananas in the Philippines.
Interested bidders have until June 30 to submit credentials in order to prequalify to join the auction. The DOTC will notify prequalified bidders by July 8. Prequalified bidders will have one-on-one meetings with DOTC Bids and Awards Committee (BAC) officials from August to October.
Despite the ongoing bidding, operators of commercial ports around Davao Gulf and a former Davao City councilor have assailed the alleged overpricing of the project.
In a document obtained by the Manila Bulletin, the PPA has actually estimated the total development cost for Davao Sasa Wharf Port at P6 billion while the DOTC-PPP Center pegged it at P18.9 billion. The cost per additional twenty-foot equivalent unit (TEU) capacity is only P1,900 as per PPA’s study compared to P13,000 estimate of DOTC-PPP Center.
Based on two feasibility studies for the privatization of the modernization, operation and maintenance of the port, the PPA’s consultant – HPC – has proposed no viability gap funding while the DOTC-PPP’s consultant—World Bank’s International Finance Corp. (IFC)—suggested government to provide capital subsidy up to 50 percent of the project cost as part of risk sharing with the private partner.
