Investors

Five groups pre-qualify for Filipino port PPP

A handful of firms have been cleared to bid for the country’s first-ever port PPP project, which will be tendered in the fourth quarter under a two-stage process.

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The Department of Transportation and Communications (DOTC) and Philippines Ports Authority (PPA) have pre-qualified five groups to bid for the PHP18.99 billion (€357 million; $406 million) Davao Sasa Port Modernization Project under the country’s Public-Private Partnership (PPP) programme. 

The prequalified bidders include Asian Terminals-DP World FZE Consortium; Bollore Africa Logistics; International Container Terminal Services; Portek International – National Marine Corporation Consortium, with Toyo Construction as contractor; and San Miguel – APM Terminals Management (Singapore) Consortium with Hyundai Development and Hanjin Heavy Industries & Construction as contractors.

Located in Davao City within the Davao Gulf, the project is the first PPP port project in the Philippines. It is the most important port and container terminal in Mindanao servicing the needs of the Davao region and neighbouring provinces.  

The PPP project consists of the modernisation of the existing port and the establishment of dedicated container handling facilities with an initial design capacity of 1,900 container ground slots to a minimum of 2,700 container ground slots. 

The private concessionaire is also expected to build a new apron, develop a linear quay, expand the back-up area, as well as install new equipment like ship-to-shore cranes and rubber-tyred gantry. 

Under a Build-Transfer-Operate (BTO) contractual arrangement, the winning bidder will also operate and maintain the modernised port over a 30-year concession period.

It is set to transform the Davao Sasa Port into a modern, international container terminal. The expected improvement in port operation will drive down shipping and cargo cost as turnaround time is shortened and larger ships can be accommodated.

The project will be competitively tendered under a two-stage bidding process. The bidder with the highest concession fee payment offer to the government will be awarded the project.

The government will tender for bids in the fourth quarter and the award of the project is scheduled in April next year, according to local reports.

The Development Bank of the Philippines and the International Finance Corporation, the private arm of the World Bank Group, are the transaction advisors.