Home » Ports/Terminals » PPA issues guidelines for privatization of ro-ro terminals

THE Philippine Ports Authority (PPA) has released procedures for the privatization of roll-on/roll-off (ro-ro) ports currently under its jurisdiction.

PPA assistant general manager for Operations Benjamin Cecilio said the move is in anticipation of more private sector participation in the development of ports.

To date, no PPA-controlled ports part of the Road Ro-ro Terminal System (RRTS) have been privatized. Industry experts said privatization of ports is often tedious since it does not only involve the concession but the sale of the entire terminal.

Under Administrative Order No. 03-2004, PPA said an RRTS terminal project proponent must be a single proprietor, partnership, or corporation registered with the appropriate government agency, and employs key officials with at least two years' minimum experience in port management or vessel operations.

It must also have sufficient finances to fund and sustain the detailed engineering design, construction and the operation and maintenance of the RRTS ferry terminal project to be implemented.

"The facility must be able to cater to any design or type of ro-ro vessels and have sufficient facilities and amenities to cater to the passengers and cargoes,"
the port agency noted.

In return, the RRTS terminal operator may be allowed to develop, construct and operate the RRTS facility for a period of 25 years and may be renewable for another
25 subject to Department of Environment and Natural Resources (DENR) and PPA requirements.

The operator, however, has to pay the PPA an annual privilege fee of P20,000 per terminal.

A Special Bids and Awards Committee (SBAC), including documentation, evaluation and processing of bids, will handle privatization of PPA-owned ro-ro ferry terminals. As a general rule, the privatization could be conducted through open and competitive bidding.

Cecilio said the PPA expects to start the process upon the effectivity of the guidelines this week.

The PPA has been able to develop three major ro-ro links, namely, the Western Nautical Highway, the Central Nautical Highway, and the Eastern Nautical Highway. These links involve approximately 70 ports nationwide, 40 of which are under PPA's jurisdiction.

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