Davao Sasa project attracts 5 investors

Chrisee Dela Paz

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Davao Sasa project attracts 5 investors
San Miguel, ICTSI, and Singapore's Portek are among the 5 groups that want to bid for the Davao Sasa modernization project

MANILA, Philippines Five consortia consisting of the Philippines’ top conglomerates and foreign port experts have sought to qualify and bid for the country’s first seaport public-private partnership (PPP) project: The P18.99-billion ($417.18-million) Davao Sasa modernization deal.

According to PPP Center Executive Director Cosette Canilao, 5 groups submitted qualification documents on Wednesday, July 29, to auction for the 30-year deal to finance, design, redevelop, operate and maintain (O&M) Davao’s main port.

These are the International Container Terminal Services, Incorporated (ICTSI); the group of San Miguel Corporation and Netherlands’ APM Terminals; French conglomerate Bollore; Singapore’s Portek; as well as the consortium of Asian Terminals, Incorporated and Dubai Port.

“This shows the enormous potential of the Davao region. The construction of a modernized port in Sasa will help meet the growing demand for world-class port services in Davao,” Transportation Secretary Joseph Emilio Abaya said in a statement.

BLUEPRINT. A perspective of the development plan for Davao Sasa Wharf from the Philippine Ports Authority website

The seaport PPP project of the transportation department and the Philippine Ports Authority (PPA) consisted of two components, namely:

  • Modernization of the existing port and establishment of dedicated container handling facilities with initial design capacity of 1,900-2,700 container ground slots from 864 container yard ground slots currently consisting of, among others: construction of a new apron, development of a linear quay, expansion of back-up area, provision of container yards and warehouses, installation of container handling equipment like like ship-to-shore cranes and rubber-tired gantry
  • Operation and maintenance of the port within a 30-year concession period

The actual submission and opening of bids is targeted in the fourth quarter of 2015, while the award is set in April next year, the transportation department said.

Once the first few phases of the project are completed in 2018, the department said Davao Sasa Port will cut down cargo unloading period from 3 days to 3 hours.

The Development Bank of the Philippines (DBP) and the International Finance Corporation (IFC), the private sector arm of the World Bank Group, have been appointed by the implementing agencies as transaction advisers.

The DBP and IFC said container traffic in the Davao region is projected to increase by at least 6% annually over the next 25 years.

“Without the added capacity of a modernized Sasa Port, there will be a strong chance of shortage in port capacity in Davao Bay, which may affect small-medium banana growers who may not be able to export their produce,” the transportation department said.

Aside from added capacity, the department said the proximity of the Davao Sasa Port to banana plantations will help growers save at least P8,000 ($175.75) in trucking costs per delivery.

The government has awarded 10 PPP projects since the program was established in 2010. (READ: PH’s PPP thrust: Work in progress) Rappler.com

$1 = P45.52 

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