PPA sets Iloilo Port bidding on Dec. 18

By Rjay Zuriaga Castor

The rehabilitation and privatization of the Iloilo Commercial Port Complex (ICPC) in Brgy. Loboc, Lapuz district, Iloilo City, is in full throttle following the announcement that the bidding for the port’s management contract will take place on December 18 this year.

Philippine Ports Authority (PPA) General Manager Jay Daniel Santiago, in a press briefing on December 4, said they are expecting “big players” to participate in the bidding for the ICPC’s 25-year contract.

“I think, considering the magnitude of the terminal, perhaps only the big ones will be interested,” he said.

Santiago mentioned that among those expected to bid are International Container Terminal Services (ICTSI), Inc., Asian Terminals Inc., Harbour Centre Port Terminal, Inc., and Globalport Terminals Inc.

It was revealed during the press conference that one firm had already purchased bid documents, but the identity of the firm was not disclosed.

Should a qualified bid be submitted on December 18, the PPA said that the post-qualification process will take around 30 days, and the contract will be awarded by the end of February 2024 at the latest.

The winning bidder or operator will carry out operations, management, landside, and waterside improvement and expansion, among other responsibilities.

BIDDER QUALIFICATION

According to previous reports, the proposed development plan and privatization of the terminal leasing of the ICPC is offered at P5.87 billion. This allocation includes P4.61 billion for capital outlay projects and P1.26 billion for major equipment expenses.

PPA bid documents specify that interested parties must have a minimum of two years of experience in port terminal or cargo-handling services and a decade of experience in operating a terminal of similar or greater size.

It added that the bidder must also have expertise in similar rehabilitation and construction works proposed in their port development plan.

According to the PPA, the minimum working capital required to meet the day-to-day operational needs of the port is P51 million.

ICPC, classified as Tier 1, falls within the framework of the PPA’s port terminal management regulatory framework (PTMRF).

Under PTMRF, the enhancement of port services will involve private sector participation, and investments will be categorized into three tiers.

The ICPC under a Tier 1 classification offers a 25-year full concession with higher tariffs to attract investors.

Under Tier 1 classification, ICPC offers a 25-year full concession with higher tariffs to attract investors.

The contract specifies a minimum fixed concession fee of P500 million for the sixth to 10th year, with a P100 million annual concession fee for the sixth year, excluding taxes.

PPA is requiring the winning bidder to invest in an internationally recognized terminal operating system, maintain PPA-owned equipment and infrastructure, construct a new 250-meter berth, upgrade the container yard for partial rubber-tired gantry operations, and provide necessary cargo-handling equipment to meet future demand.

In PPA’s guidelines for the selection and awarding of contracts under the PTMRF, bidders are prohibited from engaging in any business that may hinder them from fulfilling their contract duties, especially in maritime transportation.

The same guidelines also noted that the selection of port terminal management contracts must be competitive and transparent.

The PPA also plans to convert ICPC into an exclusive port for international vessels and cargoes to decongest the main gateway in Manila.

Domestic vessels and cargoes will only be allowed in the initial five years of the contract or until completion of the port development project at Fort San Pedro port in Iloilo City proper.