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The Philippine Ports Authority is inviting bidders for 15-year port terminal management contracts for the ports of Tagbilaran in Bohol and Masao in Agusan del Norte
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The contracts cover management and operation of cargo-handling, passenger, roll-on/roll-off and other port-related services at the two ports
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Tagbilaran Port has a minimum concession fee of P1.712 billion and Masao Port, P149.896 million
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Pre-bidding conferences for both port contracts will be held on February 28. Bids will be opened on March 14
The Philippine Ports Authority (PPA) is bidding out 15-year terminal management contracts for the ports of Tagbilaran in Bohol and Masao in Agusan del Norte.
In separate tenders, PPA invited potential bidders to submit letters of intent for the concession contracts to manage and operate cargo-handling, passenger, roll-on/roll-off (RoRo) and other port-related services at the two ports.
The successful bidder will undertake projects involving stevedoring, Ro-Ro cargo, bagging, container terminal and passenger terminal management, porterage, and management of storage, waste and shore reception facility, water distribution, and ancillary and other related services.
The Tagbilaran port contract also involves a weighbridge facility.
The minimum concession fee for Tagbilaran Port is P1.712 billion for the contract’s entire duration with P78.137 million for the first year.
For Masao Port, the minimum concession fee for the contract duration is P149.896 million, and P6.947 million for the first year.
All concession fee amounts are exclusive of taxes. Bids below the minimum concession fee will be automatically rejected.
PPA said prospective bidders must not be engaged in any business activity, primarily or otherwise, which will prevent them from properly and sufficiently discharging their contractual obligations under any port terminal management contract to be awarded. This prohibition covers entities engaged in maritime transportation.
Bidding will be through open competitive bidding procedures using the 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 new rules for terminal management contracts.
The guideline aims to ensure port services 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 services 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.
Tagbilaran and Masao ports fall under Tier 3, which means the contractors’ investments include above-ground fixtures and semi-fixtures, as well as mobile handling equipment.
The pre-bid conferences for both port contracts will be held on February 28 while opening of bids will be on March 14.
The baseport of Tagbilaran handles domestic and foreign cargoes, recording 1.759 million metric tons in 2021 from 1.874 million MT in 2020. Last year, PPA inaugurated a new second passenger terminal building at the port that expanded its passenger capacity to 1,110 passengers.
The port sustained significant structural damage from a strong earthquake in 2013.
Masao port, meanwhile, handled 210,662 MT of domestic cargoes in 2021, up from 149,615 MT in 2020.
PPA earlier also opened bidding for the terminal management contracts for the ports of Puerto Princesa, Ormoc, Tabaco, Legazpi, Zamboanga, Iligan, Ozamiz, Calapan, Tacloban, Nasipit, Matnog, Fort San Pedro, Pulupandan, and Surigao.
Of these, 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 earlier said the authority is privatizing operations of ports it manages. Including those bid out previously, the target is to bid out a total of 25 port terminal management contracts before the Duterte administration’s term ends in June this year.
