PPA to rebid contract for Misamis Oriental clustered ports

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Port of Jasaan in Misamis Oriental. Photo from the Philippine Ports Authority.
  • The Philippine Ports Authority is rebidding the 15-year contract for the clustered ports of Balingoan and Jasaan in Misamis Oriental
  • No bids were previously received leading to PPA announcing a failure of bidding in December last year
  • Bids require a minimum concession fee of P234.903 million for the duration of the concession, with a minimum concession fee of P10.886 million for the first year of the contract
  • Deadline of submission of bids, as well as bid opening, is on May 8

The Philippine Ports Authority (PPA) is rebidding the 15-year concession for the clustered ports of Balingoan and Jasaan in Misamis Oriental.

In an invitation to bid published on April 15, PPA said it is seeking bidders for the port terminal management contract that cover cargo-handling, roll-on/roll-off (Ro-Ro), passenger terminal building, and other port-related services at the two ports.

The rebidding comes after the PPA Bids and Awards Committee-Port Terminal Management Contract in December last year declared a failure of bidding for the project after receiving no bids until the December 4, 2023 deadline.

READ: PPA to rebid Misamis Oriental ports

Only one firm, PCBSI Port Terminal Management Corp., acquired bidding documents but did not submit a bid.

Bids require a minimum concession fee of P234.903 million for the duration of the concession, with a minimum concession fee of P10.886 million for the first year. These figures are lower than the initial minimum concession free of P328.662 million for the duration of the concession, and minimum concession fee of P15.231 million for the first year of the contract.

Under PPA Administrative Order (AO) No. 03-2023, the clustering of port terminal management at several ports may be included to ensure commercial viability of the contractor. The clustering of ports for bidding will be within the same port management office and shall take into consideration the complementary ports/terminal sub-ports, as well as volume of vessels, cargoes, and passengers.

PPA general manager Jay Daniel Santiago earlier this year said they are looking at clustering of ports for bidding to stabilize the market of terminals in a particular area and make management of vessel traffic “flexible” in cases such as vessel queuing.

Interested bidders must have at least two years of experience in providing port terminal/cargo-handling services, or other related port services, as indicated in completed and ongoing contracts. Prospective bidders must also not be engaged in any business activity, whether primarily or otherwise, which will prevent it from properly and sufficiently discharging its contractual obligations.

This prohibition covers entities engaged in maritime transportation.

The biddings will be conducted through open competitive bidding procedures using non-discretionary pass/fail criterion as specified in PPA AO No. 12-2018.

AO 12-2018 provides the guidelines for selecting and awarding contracts under PPA’s Port Terminal Management Regulatory Framework (PTMRF), which outlines the 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 is competitive and transparent.

PTMRF, provided under AO 03-2016, seeks to provide higher quality port service by promoting private sector participation.

Both Balingoan and Jasaan ports are under Tier 3, wherein the contactor handles above-ground fixtures and mobile-handling equipment for a 15-year concession period.

Deadline of submission of bids, as well as bid opening, is on May 8.

The Balingoan and Jasaan port cluster is one of the port clusters that PPA has so far bid out under its PTMRF. The others are the cluster of Jagna, Tapal, Ubay, Talibon, and Getafe in Bohol, which has already been awarded to the winning bidder; and the cluster of Balbagon, Benoni, and Guinsiliban, in Camiguin, which was also bid out again; port cluster of Tablas (Odiongan) and Carmen; and port cluster of Romblon and Ambulong.

Balingoan port is located in Barangay Bauk-bauk, the commercial center of Balingoan, and serves as an entry and exit point for the conveyance of travelers and cargoes to and from Camiguin Island.

Jasaan port, meanwhile, serves as an alternate for the Port of Cagayan de Oro and caters to tramping vessels servicing industries in the eastern part of Misamis Oriental and Agusan areas. – Roumina Pablo