International Container Terminal Services, Inc.’s (ICTSI) unsolicited proposal to modernize and develop the Iloilo Port Complex and the Port of Dumangas in Iloilo province has recently been deemed complete by the Philippine Ports Authority (PPA).
ICTSI received from PPA a letter of acceptance for completeness in accordance with the Revised Guidelines and Procedures for Entering into Joint Venture Agreements between Government and Private Entities (2013 NEDA JV Guidelines), the port operator said in a statement.
ICTSI said PPA will now evaluate within a maximum of 60 days the legal, financial and technical merits of ICTSI’s proposal to modernize the Iloilo Commercial Port Complex and the Port of Dumangas, which the port operator submitted last year.
“We are excited about this development as we know we submitted a fully compliant proposal that will be the most beneficial for Iloilo. We are fully committed to working with the PPA on this project, and are hopeful to be granted original proponent status (OPS),” ICTSI global corporate head Christian R. Gonzalez said.
“With the Transportation Department’s recent directive to fast track unsolicited bids for port projects, we are confident that we will be able to assist the Philippine government more in its goals of upgrading the country’s port network; and help Iloilo attain its full potential in facilitating even greater trade facilitation that will improve connectivity for cargo movement within the country,” Gonzalez added.
Once the ICTSI’s proposal receives the OPS, it will be turned over to the National Economic and Development Authority (NEDA) for evaluation. If approved by NEDA, the unsolicited proposal will go through a Swiss challenge for other interested parties to challenge the bid.
Over the life of the concession, which will be agreed on with PPA, ICTSI estimates that an investment of over P8.7 billion will be needed to fully develop the Iloilo Port Complex—including dredging and deepening of the drafts and channel to allow the direct entry of new-generation international vessels, and purchase of modern quayside crane handling equipment estimated to cost around P1.35 billion.
ICTSI is also offering to substantially invest in the development of the Port of Dumangas in order to seamlessly handle the spillover from the city port.
The Iloilo-Dumangas ports bid is ICTSI’s first foray in the Visayas with the intent to provide a national network of ports with ICTSI’s brand of operational synergy that would further improve the country’s supply chain and competitiveness in global trade.
Gonzalez earlier said that with the port operator’s development plans, Iloilo can be a major regional transhipment hub for Visayas.
Additionally, agri-aqua products from Iloilo can be shipped to domestic and foreign markets in refrigerated containers, driving costs down and making these goods very competitive.
