PPA opens bid for 2 Misamis Oriental port clusters

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Balbagon port. Photo from Philippine Ports Authority/PMO Misamis Oriental/Cagayan De Oro.
  • The Philippine Ports Authority has opened bids for two port clusters in Misamis Oriental
  • Up for bidding is a 15-year contract for the Balbagon, Benoni, and Guinsiliban ports in Camiguin after the first round in October failed
  • A 15-year concession for the clustered ports of Balingoan and Jasaan in Misamis Oriental is also being offered
  • Deadline for submission of bids is on December 4

The Philippine Ports Authority (PPA) is bidding out contracts for two clusters of ports in Misamis Oriental.

The 15-year concession for the clustered ports of Balbagon, Benoni, and Guinsiliban, in Camiguin is being rebidded after the first round was declared a failure in October. This was the first set of clustered ports that PPA has placed for bidding under its Port Terminal Management Regulatory Framework (PTMRF).

READ: PPA seeks operators for Misamis Oriental ports

The 15-year concession for the clustered ports of Balingoan and Jasaan in Misamis Oriental is also up for bid.

Both contracts cover cargo-handling, roll-on/roll-off (Ro-Ro), passenger, and other port-related services.

A pre-bidding conference for both projects is set on November 17. The deadline for bid submission and opening of bids is on December 4.

The minimum concession fees are P269.913 million for the Camiguin cluster (with a minimum concession fee of P8.1 million for the first year of the contract) and P328.662 million for Balingoan and Jasaan (with a minimum concession fee of P15.231 million for the first year of the contract).

The amounts are exclusive of all taxes. Bids below the minimum concession fees will automatically be rejected.

Under PPA Administrative Order (AO) No. 03-2023, the clustering of port terminal management at several ports within the same port management office and complementary ports/terminal sub-ports is included to ensure commercial viability of the contractor. The volume of vessels, cargoes, and passengers are also taken into consideration.

PPA general manager Jay Daniel Santiago said earlier this year they are exploring the clustering of ports for bidding to stabilize the market of terminals in a particular area and make management of vessel traffic “flexible” in cases such as vessel queuing.

Interested bidders for the two projects must have at least two years of experience in providing port terminal/cargo-handling services, or other related port services, as indicated in completed and ongoing contracts.

Also, prospective bidders should not be involved in any business activity that would prevent them from fulfilling their contractual obligations. This includes entities engaged in maritime transportation.

The bidding will follow PPA AO No. 12-2018 guidelines that outline the rules for selecting and awarding contracts under PPA’s PTMRF for terminal management.

PTMRF, as specified in AO 03-2016, aims to improve port services by involving the private sector. It categorizes port investments into three tiers to simplify determining the investment arrangements for each port.

Both port clusters fall under Tier 3, meaning the contractor will manage above-ground equipment and mobile-handling gear for a 15-year concession period.

Balbagon port is in Mambajao, Camiguin Island and handles domestic vessels and various types of cargo.

Benoni port is in Mahinog, Camiguin Island and handles domestic vessels, rolling cargo, fuel, and general cargo.

Guinsiliban port in Guinsiliban, Camiguin Island serves as a complementary port to Balingoan and an alternate for Benoni for cargo vessels.

Balingoan port is located in the commercial center of Balingoan, serving as the entry and exit point for travelers and cargo to and from Camiguin Island.

Jasaan port serves as an alternate port for Cagayan de Oro, catering to tramping vessels for industries in eastern Misamis Oriental and Agusan areas.

Since 2020, PPA has been bidding out port terminal management contracts under PTMRF. PPA has so far bid out 19 ports. Of these, one port was under Tier 2, which was Davao, while 18 ports were under Tier 3, including Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, Surigao, Masao, Tagbilaran, Pagadian, and Pasig River ports.

PPA also plans to bid out its first Tier 1 port, Iloilo Commercial Port Complex, this year.