Home » Maritime, Ports/Terminals » PPA to wrap up talks on GenSan port unsolicited proposal by Oct

Philippine Ports Authority general manager Atty. Jay Daniel Santiago at the sidelines of The Manila Times Shipping and Logistic Outlook summit on September 30.

The Philippine Ports Authority (PPA) is processing the unsolicited proposal of Davao-based private port operator Kudos Trucking Corporation to rehabilitate and develop General Santos port. The agency expects to complete the negotiation process within October.

If the proposal is found qualified after evaluation, PPA hopes to award the original proponent status (OPS) to Kudos Trucking by November, and by December, to submit its recommendation to the National Economic and Development Authority (NEDA), PPA general manager Atty. Jay Daniel Santiago told media on the sidelines of The Manila Times Shipping and Logistic Outlook summit on September 30.

Kudos Trucking last year submitted to PPA a letter of intent and the complete documentation for its proposal to develop General Santos port.

After handling Kudos Trucking’s proposal, Santiago said that by December, PPA will then tackle the unsolicited proposal of International Container Terminal Services, Inc. (ICTSI) to modernize and develop the Iloilo Port Complex and the Port of Dumangas in Iloilo province.

Last year, ICTSI submitted a letter of intent to modernize the two ports’ infrastructure and superstructure and eventually manage and operate the facilities. The port operator has estimated the project cost at P8.7 billion, covering four development phases.

READ: ICTSI to submit soon requirements for proposal to develop Iloilo ports

Santiago explained that PPA is processing unsolicited proposals on a “first in, first out basis,” which is why it finished negotiation on the unsolicited proposal of Chelsea Logistics and Infrastructure Holdings Corporation (CLIHC) for Davao-Sasa port first before starting on Kudos’ proposal.

CLIHC has been granted OPS for the Davao-Sasa Port project, and received the Certificate of Successful Negotiation dated August 19 from PPA after a successful negotiation on the scope and details of its proposal in accordance with NEDA’s Revised Guidelines and Procedures for Entering into Joint Venture (JV) Agreements between Government and Private Entities.

READ: Chelsea bags original proponent status for Davao port proposal

CLIHC said its proposal—a 25-year JV agreement to modernize Davao-Sasa Port—will run in five phases, with phase 1 to be completed in 2021 and phase 2 in 2023.

The PPA chief, however, noted that negotiations on Kudos’ and ICTSI’s respective proposals will be faster because “a lot of the terms [of reference]… we’ve already settled that with the Davao-Sasa proposal.”

He further said that PPA cannot deviate from the major conditions of the terms of reference used for the Davao-Sasa proposal, and can only include minor changes.

Santiago said PPA has already sent its recommendation on the Davao-Sasa port proposal to NEDA and is now waiting for a schedule “on when we can present it and that the NEDA can actually…take cognizance of the application.”

He said that only after presenting to NEDA the Davao-Sasa port proposal can PPA schedule the bidding for the Swiss challenge to the project. A required process for unsolicited proposals, a Swiss challenge is conducted so other parties can challenge the original proposal. – Text and photo by Roumina Pablo

One Response to “PPA to wrap up talks on GenSan port unsolicited proposal by Oct”

  1. Gensan port users looking forward….

    Reply

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