12 seaports to be privatized – PPA

More local seaports are lined up for upgrade or improvement under the public-private partnerships (PPPs) scheme, with 12 set to be turned over this year, according to the Philippine Ports Authority (PPA).

The PPA is preparing to complete the PPP of 12 ports in Luzon and Mindanao as part of efforts to tap private resources for infrastructure management.

PPA expects to turn over to private control this year the ports of Balingoan, Jasaan, General Santos, Lucena, Roxas, Mansalay, Bulalacao, Bansud, Pola, Puerto Galera, Abra de Ilog and San Jose.

Both the ports of Balingoan and Jasaan are in Misamis Oriental, while the port of General Santos is in South Cotabato. PPA general manager Jay Santiago said his agency has wrapped up the feasibility studies (FS) for the Mindanao ports.

Meanwhile, Oriental Mindoro houses the ports of Roxas, Mansalay, Bulalacao, Bansud, Pola and Puerto Galera. The port of Lucena is in Quezon, while the ports of Abra de Ilog and San Jose are both in Occidental Mindoro.

All of the Luzon ports are awaiting the delivery of their FS, but Santiago said the PPA can finish both the studies and bidding this year.

“At this stage, only Balingoan, Jasaan and General Santos have feasibility studies that include an indicative financial model,” Santiago said.

“For the rest of the ports, the estimated concession fees are still being developed in compliance with the PPP Code and its (implementing rules and regulations), which require the completion of FS before finalizing the valuation, structuring and procurement strategy,” he added.

Santiago said the PPA is aggressive in handing over ports to the private sector given the limited resources that the agency has. As logistics demand goes up, these ports have to be expanded, and it will be difficult for the PPA to fund all of these projects on its own.

PPA wants to maximize the resources and technologies that the private sector has in running infrastructure projects. Santiago said these capabilities can lead to better services and business efficiencies.

The PPA is taking its cue from the Department of Transportation, which is working to privatize the operations and maintenance of transport projects like airports and railways.

“We are accelerating these initiatives mainly to support the national policy on PPPs as a catalyst for investments, jobs and more competitive logistics across the country,” Santiago said.

Last year, the PPA turned over the Iloilo Commercial Port Complex to the International Container Terminal Services Inc. through a P10.53-billion deal to operate and maintain the facility.