French firm Eiffel Matiere S.A. has agreed to renegotiate the P15-billion GMA (Greater Maritime Access) Ro-Ro port project contract it entered into with the previous Philippine administration.

Eiffel Matiere earlier threatened to sue the Philippine government after it scrapped the P15-billion project, which called for the installation of modular ports in 72 locations by 2012.

Transportation and Communications Secretary Manuel Roxas II said the project will be canceled but the contractor will be compensated properly based on the actual work done.

The project has already been started in six locations.

“The French proponent expressed a willingness to sit down and renegotiate the contract,” Roxas told members of the Makati Business Club last week.

A technical working group composed of the Philippine Ports Authority, Department of Finance, Office of the Solicitor General and the Department of Transportation and Communications will be formed to set parameters of the renegotiations.

Photo by Sistak

You May Also Like

Standard & Poor’s predicts more miseries for box shipping

Rating agency Standard & Poor’s forecasts that global container shipping will continue to face difficult operating conditions over the coming year, characterized by fragile…

P3 network alliance good for industry if not abused—Drewry

The P3 Network to be launched jointly in the second quarter of 2014 by Maersk Line, Mediterranean Shipping Co. (MSC), and CMA CGM will…

Hong Kong’s AAT, Hactl report May cargo numbers

Asia Airfreight Terminal (AAT), the second cargo terminal handler at Hong Kong International Airport, said it saw a double-digit growth in air cargo traffic…

OOCL logs higher volumes but lower revenue, sets Europe-Asia rate hike

Orient Overseas Container Line (OOCL) reported a 10 percent hike in container volumes to 1.39 million TEUs (20-foot-equivalent units) in the fourth quarter of…