Davao port privatisation scrapped
The planned Davao Sasa Port modernisation project is set to be dropped by the Philippine Ports Authority (PPA).
It has previously been approved by The National Economic and Development Authority to modernise the Davao Sasa Port for P19bn but now PPA plan to redevelop the port at budget of just P4.7bn.
Jay Daniel Santiago, general manager of PPA, told local reporters: “Because there are arguments saying there should still be a government presence in that area to make sure that port fees and cargo fees will be maintained.”
“We are going to request Neda for closure of the proposed project, so we can withdraw it.”
Despite issues, the Davao Sasa modernisation project attracted five potential bidders: Asian Terminals, International Container Terminal Services, Bollore Africa Logistics, Singapore-based Portek International Pte and San Miguel Corp.
Sasa Port is designed for break bulk cargo vessels, according to PPA data approximately 500,000 metric tonnes of steel, wheat, fertilizer, motor vehicles, heavy equipment and other cargo not suitable for containers went through Sasa Port in 2014.
Mr Santiago continued: “There are arguments saying Davao Sasa should still be operated by the government in that area in order to make sure that port fees and cargo fees will be maintained.”
“What is confirmed now is the cost of between P4.7 to P4.bn… whether that will be PPP, or not, or whether PPA will be the one to fund it and continue operating it, that will be decided shortly but it should not exceed the first quarter of next year, there will be movements in the Davao Sasa in terms of construction.”
The scaled-down cost means the project no longer requires NEDA Investment Coordination Committee approval, where the threshold is P5bn.