2 firms win 9 PPA port management contracts

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Zamboanga port. File photo courtesy of Philippine Ports Authority.
  • The Philippine Ports Authority has awarded 15-year management contracts for nine port terminal projects to two firms
  • Prudential Customs Brokerage Services, Inc and the joint venture of Harbour Centre Port Holdings, Inc and Zamboanga-based Z.C. Integrated Port Services, Inc. won the biddings
  • The management of the ports of Ormoc, Puerto Princesa, Calapan, Legazpi and Tabaco was awarded to PCBSI
  • The joint venture company bagged the management contract for Iligan, Ozamiz, Zamboanga and Tacloban ports

The Philippine Ports Authority (PPA) has awarded the 15-year management contracts of nine port terminal projects to two companies.

According to the Notices of Award published on the PPA website, Prudential Customs Brokerage Services, Inc. (PCBSI) and the joint venture (JV) consisting of Harbour Centre Port Holdings, Inc. and Zamboanga-based Z.C. Integrated Port Services, Inc. (ZCIPSI) won the biddings held on various dates since last year under PPA’s new terminal management framework.

PCBSI won the contracts for the following ports with its proposed concessions fees, exclusive of taxes:

  • Ormoc – P850 million
  • Puerto Princesa – P1.663 billion
  • Calapan – P1.495 billion
  • Legazpi – P560,000

PCBSI also won the bidding for the port in Tabaco, a city in Albay, but its notice of award has not yet been posted on the PPA website.

The JV won the contracts for the following ports:

  • Iligan – P1.008 billion
  • Ozamiz – P1.575 billion
  • Zamboanga – P2.503 billion
  • Tacloban – P1.758 billion

PCBSI has already taken over the ports of Calapan and Legazpi while contracts for the other ports are still being reviewed by the Office of the Government Corporate Council, PCBSI general manager Bienvenido Basco told PortCalls.

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The JV of Harbour Centre and ZCIPSI has also taken over the port of Zamboanga.

Bidding for the port terminal management contract of Matnog port in Sorsogon last August 9, however, was declared a failure after one of the three companies that bought bidding documents withdrew while the other two did not submit bidding documents.

The opening of bids for the port terminal management contract of Pulupandan port in Negros Occidental was scheduled for August 23, 2021.

PPA last year started bidding out 15-year port terminal management contracts under PPA Administrative Order (AO) No. 12-2018, as amended.

AO 12-2018 provides guidelines for selecting and awarding contracts under PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines new rules for terminal management contracts.

The guideline aims to ensure port services to be provided meet global standards and the selection of port terminal management contracts is competitive and transparent.

PTMRF, under AO 03-2016, seeks to provide higher quality port service by promoting private sector participation. Under this framework, investments in ports are to be categorized into six tiers, ranging from a fully private concession to a fully PPA-managed port, to make it easier to determine the investment arrangements of a port.

Moreover, concessions will be performance- or outcome-based, instead of investment-based or based on the number of equipment or facilities to be provided by the concessionaire. – Roumina Pablo