PPA invites bids for 15-year contract to operate Pagadian port

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The 15-year contract covers the management and operation of the cargo-handling, roll-on/roll-off (RoRo), and other port-related services at the Pagadian port. Photo from the Maritime Industry Authority Twitter account.
  • The 15-year contract involves managing and operating cargo-handling, roll-on/roll-off, and other port-related services at Pagadian Port in Zamboanga del Sur
  • Minimum concession fee is P66.037 million
  • Pre-bid conference is scheduled for March 28. The deadline for submission of bids and the opening of bids will be on April 11

The Philippine Ports Authority is bidding out the 15-year contract for the management of Pagadian port in Zamboanga del Sur.

In an invitation to bid issued on March 11, PPA advised potential bidders to submit letters of intent for the concession contract of Pagadian port covering the management and operation of the cargo-handling, roll-on/roll-off (RoRo), and other port-related services at the port.

The projects involve stevedoring services, Ro-Ro cargo services, bagging services, container terminal management, storage management, waste and shore reception facility management, water distribution services, weighbridge facility, as well as ancillary and other related services.

The minimum concession fee for the project duration is P66.037 million, with a minimum concession fee of P3.060 million for the first year, exclusive of all taxes. Bids below the minimum concession fee will be automatically rejected.

Prospective bidders should have at least a two-year experience in cargo handling and Ro-Ro operations. They must not be engaged in any business activity that will prevent them from discharging their contractual obligations under any port terminal management contract to be awarded. This prohibition covers entities engaged in maritime transportation.

The bidding will be conducted through an open competitive bidding procedure using non-discretionary pass/fail criterion as specified in PPA Administrative Order No. 12-2018, as amended.

READ: PPA bares guidelines for awarding of port management contracts

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

PTMRF, provided 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.

Pagadian port falls under Tier 3, which means the contractor’s investments include above-ground fixtures and semi-fixtures, as well as mobile handling equipment.

The pre-bid conference will be held on March 28. The deadline of submission of bids and the opening of bids will be on April 11.

Pagadian port handled 24,374 metric tons of domestic cargoes and serviced 253 ships in 2021.

PPA earlier opened bidding for the port terminal management contracts of Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, Surigao, Masao, and Tagbilaran ports.

The contracts for the ports of Iligan, Ozamiz, Zamboanga, Tacloban, Nasipit, Matnog, Pulupandan, Surigao, Ormoc, Puerto Princesa, Calapan, Legazpi, and Tabaco have already been awarded.

PPA general manager Jay Daniel Santiago earlier the authority is privatizing operation of ports that it manages. Including those bid out previously, Santiago said the target is to bid out a total of 25 port terminal management contracts before the term of President Rodrigo Duterte ends this year.