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PPA seeking bids for Surigao terminal operation

  • The Philippine Ports Authority is bidding out the terminal management contract for the Surigao baseport in Surigao Del Norte
  • The 15-year contract covers cargo-handling, passenger, roll-on/roll-off, and other port-related services
  • The project’s minimum concession fee is P667.628 million, with a minimum concession fee of P30.939 million for the first year
  • The deadline for submission of bids is November 22

The Philippine Ports Authority (PPA) is bidding out the 15-year terminal management contract for the Surigao baseport in Surigao Del Norte.

The contract covers cargo-handling, passenger, roll-on/roll-off (RoRo) and other port-related services at the port on Borromeo Street, Surigao City.

In addition, it involves stevedoring services, Ro-Ro cargo services, bagging services, container terminal management, passenger terminal management, porterage services, storage management, waste and shore reception facility management, water distribution services, weighbridge facility, and ancillary and other related services.

The project’s minimum concession fee is P667.628 million, with a minimum concession fee of P30.939 million for the first year. All concession fee amounts are exclusive of all taxes. Bids below the minimum concession fee will be automatically rejected.

Prospective bidders must not be engaged in any business activity which will prevent it from properly and sufficiently discharging its 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 open competitive bidding procedures using non-discretionary pass/fail criterion as specified in 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 the new rules for terminal management contracts.

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

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.

RELATED READ: PPA sees 600% more revenues under new port contract scheme

The Surigao baseport falls under Tier 3, which means the contractor’s investments include above-ground fixtures and semi-fixtures, and mobile handling equipment.

A pre-bid conference for the port project will be held on November 8. Deadline for submission of bids is November 22, also the date of the opening of bids.

The Surigao baseport handled 214,212 metric tons of domestic cargoes, 3,450 twenty-foot equivalent units, and 3,470 ships in the first half of 2021.

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

PPA general manager Jay Daniel Santiago said they are privatizing operations of ports managed by PPA. Including the previous ones already bid out, Santiago said the target is to bid out a total of 25 port terminal management contracts before the end of the current administration’s term next year.

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