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THE
Philippine government has finally opened the bidding for
the privatization of the
North Harbor, one of
the country’s largest terminals.
Documents indicate that private entities will be asked
to bid for a 25-year contract to run and manage the
North
Harbor’s
container terminal, the general cargo terminal, and the
passenger terminal complex as a single operational area.
The contract is renewable for another 25 years.
The
Philippine Ports Authority (PPA) has formed a special
bids and awards committee, headed by PPA general manager
Oscar M. Sevilla, to handle the bidding procedures
starting this month through October.
It said
interested bidders must submit their letter of intent
and purchase the necessary documents at the PPA head
office in Manila starting Thursday. A pre-eligibility
conference will be held on June 20.
By July
2, PPA is expected to have streamlined the number of
eligible bidders so that bidding proper can already be
conducted during July 18 to October 17.
Earlier,
Sevilla said the Magsaysay and the Aboitiz groups are
both interested to join the bidding, along with leading
port operators Asian Terminals, Inc. and the
International Terminal Services, Inc.
The
agency said each bidder will be required to have a bid
security either in form of cash or check worth P68.18
million, a bank guarantee worth P102.28 million, or a
surety bond worth P170.47 million.
Last
month, an agreement was struck between the officials of
the PPA and the Philippine Chamber of Commerce, Inc. (PCCI),
which acts as a watchdog of the measure.
According to the agreement, PPA can only privatize one
of two North Harbor cargo handling terminals if it
promises to manage the remaining facility so that it
will compete with the privatized port.
An
executive order issued by former president Joseph
Estrada had instructed officials to divide the
North Harbor’s
privatization into two packages. The first include Slip
0, Piers 9 to 12 while the second covers Piers 14, 15
and the Vet Yard.
Earlier,
the PPA already approved the privatization of the North
Harbor, which contained the single-operator scheme, but
it was blocked by the PCCI and later by the National
Economic and Development Authority (Neda) and the
Department of Trade and Industry.
The PCCI
and Neda, both represented at the PPA board, has
supported proposals to allow at least two private
companies to manage the terminal.
PPA then
withdrew its papers from the Neda.
Besides
saying it no longer needed Neda endorsement, the port
body sought, and got, national government approval to
bid out the
North Harbor
using its charter. The North Harbor generates more than
P200 million in revenues per year. |
