The Philippine Ports Authority (PPA) is bidding out the contracts to manage and operate the Northern Mindanao ports of Iligan and Ozamiz
The contracts will be in effect for 15 years each with a minimum concession fee of P375 million for Iligan port and P1 billion for Ozamiz port
A pre-bid conference for both port projects will be held on April 14 while submission of bids for Iligan and Ozamiz ports will be until April 26 and April 27, respectively
The Philippine Ports Authority (PPA) is bidding out contracts for the management and operation of the Northern Mindanao ports of Iligan and Ozamiz under its new bidding rules.
PPA is inviting potential bidders to join public bidding for the management and operation of cargo-handling, passenger, roll-on/roll-off (Ro-Ro), and other port-related services at the ports of Iligan and Ozamiz.
The project involves stevedoring services, bagging services, container terminal management, passenger terminal management, Ro-Ro cargo services, porterage services, storage management, waste and shore reception facility management, water distribution services, weighbridge facility, and ancillary and other related services.
The contracts will be in effect for 15 years each. For Iligan port, the minimum concession fee is P374.946 million. For the first year of the contract, the minimum concession fee is P15.351 million.
For Ozamiz port, the minimum concession fee is P1.014 billion, while the minimum concession fee for the first year is P41.631 million.
All concession fee amounts are exclusive of all taxes. Bids below the minimum concession will be automatically rejected.
Interested bidders should submit a letter of intent and must have at least two years of experience in cargo handling, passenger terminal building (PTB), and Ro-Ro operations.
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 new rules for terminal management contracts.
The guideline aims to ensure port services to be provided meet global standards and 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.
A pre-bid conference for both port projects will be held on April 14. Deadline for submission of bids, as well as the opening of bids, for Iligan and Ozamiz ports will be on April 26 and April 27, respectively.
Aside from the two Northern Mindanao ports, PPA also earlier opened bidding for the port terminal management contracts of the ports of Puerto Princesa, Ormoc, Tabaco, Legazpi, and Zamboanga.
PPA general manager Jay Daniel Santiago early last March said bidding for the port terminal management contract of Puerto Princesa port is over and bids are currently undergoing post-evaluation. The processing of bids for the port terminal management contracts of Legazpi, Tabaco, and Ormoc ports is also finished. – Roumina Pablo