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PPA seeks port operators for Tabaco, Legazpi ports

  • Philippine Ports Authority is bidding out contracts for the management and operation of the ports of Tabaco and Legazpi in southern Luzon
  • Contracts for both ports will run for 15 years each with a minimum concession fee of P730 million for Tabaco port and P542 million for Legazpi port
  • A pre-bid conference for both ports will be held on January 4, 2021, and deadline for submission of bids for Legazpi port is January 18 and for Tabaco port, January 22

The Philippine Ports Authority (PPA) is bidding out the contracts on the management and operation of the ports of Tabaco and Legazpi using the agency’s new rules on terminal management contracts.

In separate invitations, PPA invited potential bidders to submit letters of intent to join the public bidding on the management and operations of cargo-handling, passenger, and other port-related services at the two Bicol ports. Tabaco port’s contract also covers roll-on/roll-off (Ro-Ro) operations.

The contracts for both ports will be in effect for 15 years each with a minimum concession fee of P729.877 million for Tabaco port and P542.083 million for Legazpi port.

For the first year of the contract, the minimum concession fee for Tabaco port is P30.113 million and for Legazpi port, P22.365 million.

Bids below the minimum concession will be automatically rejected.

Both projects involve arrastre and stevedoring 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. Tabaco port also includes Ro-Ro cargo services.

Interested bidders for the two port contracts should have experience in cargo handling and passenger terminal building (PTB) operations for at least two years, with bidders for the Tabaco port also required to have experience in 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.

READ: PPA bares guidelines for awarding of port management contracts

AO 12-2018 provides the 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 the selection of port terminal management contracts will be 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 on Tabaco port management will be held on January 4, 2021 and deadline for submission of bids will be on January 22, the same day the bids will be opened.

For the Legazpi port management, the pre-bid conference will also be conducted January 4 and deadline for submission of bids is on January 18, the same day the bids will be opened.

Aside from the two Bicol ports, PPA earlier also opened the bidding for the port terminal management contract of Puerto Princesa port in Palawan and Ormoc port in Leyte.

READ: PPA seeks operators for Ormoc, Puerto Princesa ports

In the first nine months of the year, the baseport of Legazpi handled 328,351 metric tons (mt) of cargoes, 51.4% lower than the 676,007 mt handled in the same period in 2019, PPA data showed.

Tabaco port recorded 151,041 mt handled in the first nine months of 2020, 35% down from 232,767 mt posted in the same period last year. – Roumina Pablo

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