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PPA is inviting bids for a 15-year contract to operate and manage the terminal of Pasig River Port in Manila
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The concession contract covers management and operation of the cargo-handling, passenger, roll-on/roll-off, and other port-related services at the port
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The winning bidder will pay a minimum concession fee of P2.487 billion for 15 years, with a minimum concession fee of P165.787 million for the first year
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A pre-bid conference will be held on April 11 while the deadline for submission of bids and the opening of bids will be on April 25
The Philippine Ports Authority (PPA) is bidding out a 15-year contract for the management of Pasig River Port terminal at the Port of Pasig River in Manila.
In an invitation to bid, PPA invited potential bidders to submit letters of intent for the concession contract of Pasig River port, covering the management and operation of the cargo-handling, passenger, roll-on/roll-off (RoRo) and other port-related services.
The projects involve stevedoring services, Ro-Ro cargo services, bagging services, passenger terminal management, porterage, storage management, waste and shore reception facility management, water distribution services, weighbridge facility, and ancillary and other related services.
The minimum concession fee for the project duration is P2.487 billion, with P165.787 million as minimum for the first year. The concession fee is exclusive of all taxes. Bids below the minimum concession fee will be automatically rejected.
Prospective bidders must not be engaged in any business activity, whether primarily or otherwise, which will prevent the winning bidder from discharging its contractual obligations properly and sufficiently 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 the non-discretionary pass/fail criterion as specified in PPA Administrative Order 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 will meet global standards and that 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, for easier determination of investment arrangements of a port.
Pasig River port falls under Tier 3, which means the contractor’s investments include above-ground fixtures and semi-fixtures, and mobile handling equipment.
According to bid documents, Pasig River port encompasses an area of 43,247.07 square meters. PPA noted that 1,194.05 sqm of the concession area on the north and south banks of the river is occupied by informal settlers.
The terminal management office of Pasig River, under the port management of PPA NCR-South, handled 848,960 metric tons of domestic cargo and 9,595 passengers in 2021.
The pre-bid conference will be held on April 11. The deadline of submission of bids and the opening of bids is on April 25.
PPA had earlier opened the bidding for the port terminal management contracts of Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort SanPedro, Pulupandan, Surigao, Masao, Tagbilaran, and Pagadian ports.
Of these ports, PPA has already awarded the contracts for the ports of Iligan, Ozamiz, Zamboanga, Tacloban, Nasipit, Matnog, Pulupandan, Surigao, Ormoc, Puerto Princesa, Calapan, Legazpi and Tabaco.
PPA general manager Jay Daniel Santiago had said earlier the port regulator is privatizing operations of ports that it manages. Including previous ones already bid out, Santiago said the target is a total of 25 port terminal management contracts to be offered before the Duterte administration’s term expires this year.
