PPP projects for expansion of Davao port and airport underway

Oct. 22, 2014

Davao City –  The bidding for the modernization projects involving the Francisco Bangoy International Airport and the Sasa Wharf will possibly start next year.

The National Economic Development Authority (NEDA) approved as priority projects in Davao Region the expansion and development of both the city port and airport which will be implemented under Public-Private Partnership.

During the first leg of the Updated Davao Regional Development Plan 2014-2016 Roadshow hosted Davao City, Wednesday, Regional Development Council Vice-chairperson Ma. Lourdes Lim said that the Davao City government is already in talks with prospective investors including “a Malaysian, a Singaporean, and a local Filipino company”  looking into Sta. Ana wharf development.

Lim said that the Davao Sasa Port Modernization Project has an estimated cost of P19 billion “with a concession period of 30 to 35 years inclusive of construction.”

The project, she said, is aimed at developing and modernizing the port facilities including the improvement of operations and maintenance of Sasa port.

The modernization of the port would include the construction of “a new quay wall and terminal;  procurement, installation and operation of 5 Ship-to-Shore gantry (gooseneck-type) cranes; 14 rubber tyred gantry cranes; 2 reach stackers; 30 terminal tractors; 35 container trailers; 10 empty container handlers; including the acquisition of 7-hectare for road right of way which will be used for special truck lanes.”

Meanwhile, the operations, maintenance and development projects for the Francisco Bangoy International Airport costs an estimate of P40.5 billion.

“After the NEDA Board approval, it is expected that the PPP Center, which is an attached agency of NEDA will be formulating the tender documents, such that the solicited proposals would already attract prospective bidders,” Lim said.

Lim said that soon after the documents are submitted the project will be “published for open-bidding.”

Lim also said that the compensation for affected settlers in the 200-hectare area of the international airport is now led by the city government.

The Regional Development Council has also recognized the city as the first in the country to pass a PPP ordinance.

Read related story: Davao City Council okays local PPP ordinance

Meanwhile, City Councilor Danilo Dayanghirang raised his observation that there is a need for “more advocacy from our level for the decision makers in Manila to shape up” and do away with  a lot of ‘red tapes’ on requirements particularly on projects.

Dayanghirang said that the government could just simplify the requirements.

According to Lim, RDC 11 has already called for reforms in the regional development budget process.

RDC 11 also reviews the formula on the “counter-parting scheme and also the grassroots participatory planning and budgeting approach process.” (davaotoday.com)

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