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Construction of the New Cebu International Container Port may now finally begin after the Department of Transportation issued a notice to proceed to the project’s civil works contractor
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Korean firm HJ Shipbuilding and Construction Corp. received the NTP on January 6
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The port’s operation and management contract is scheduled for bidding in 13-14 months from mobilization or by the first quarter of 2026, according to Transportation undersecretary for Maritime Elmer Francisco Sarmiento
Construction of the New Cebu International Container Port (NCICP) project may now finally begin after the Department of Transportation (DOTr) issued a notice to proceed to the project’s civil works contractor.
The terminal’s operations and maintenance (O&M) contract, on the other hand, is expected to be bidded out by next year.
The NTP was received by civil works contractor Korean firm HJ Shipbuilding and Construction Corp. on January 6, Transportation undersecretary for Maritime Elmer Francisco Sarmiento told PortCalls in a text message.
The issuance of the NTP came after the DOTr awarded the Civil Works Contract Package for NCICP to HJ Shipbuilding on December 18, the same day the transaction advisory services agreement (TASA) with World Bank-International Finance Corp. (IFC) was inked.
READ: DOTr signs 5 infra projects, including for new Cebu port
Sarmiento said IFC will be the transaction adviser for the public-private partnership (PPP) component of the project and will develop the terms of reference for the bidding of the O&M and purchase of five quay cranes for the terminal.
Sarmiento earlier said the project has two approaches: civil works which will be funded by official development assistance from South Korea’s Export-Import Bank of Korea (KEXIM), and the purchase of quay cranes that will be under a PPP.
The Philippine government and KEXIM in 2018 signed a $172.64-million loan agreement for the NCICP; a counterpart funding of P1.28 billion would be financed by the Philippine government.
Following the signing of the TASA, Sarmiento said they are targeting to commence bidding for the O&M within 13-14 months from mobilization of the IFC as transaction adviser, or by the first quarter of 2026.
Once operational, Sarmiento said NCICP will handle international cargo operations while the Cebu baseport will service domestic shipments.
The new international terminal is seen as the long-term solution to growing volumes handled at Cebu International Port, which currently handles foreign cargoes at Cebu baseport.
Groundworks for the NCICP was to have originally started in August 2022 while the civil works component was bid out in 2022, and won by HJ Shipbuilding. The project, however, encountered delays in procurement because of the COVID-19 pandemic.
DOTr also sought the National Economic and Development Authority (NEDA) Board’s approval to hike project cost which has grown since the first Board approval in 2016.
Last year, the NEDA Board greenlit the changes to parameters in the NCICP Project, increasing the project cost to P16.929 billion from the initial P9.962 billion, while the new implementation period is up to June 21, 2028.
READ: Cost of new Cebu port up 70% to P16.9B
NCICP will be built on a 25-hectare reclaimed area in Tayug, Consolacion, Cebu and connected to the mainland by a 300-meter offshore bridge. Several feasibility studies, the most recent one by KEXIM, suggest locating the new sea hub in Tayug, Consolacion, some eight kilometers from the Cebu base port.
The project is one of the government’s big-ticket infrastructure flagship projects. – Roumina Pablo
