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The Philippine Ports Authority expects two offshore wind ports to be ready by 2026
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The redevelopment of Sta. Clara port in Batangas and Mercedes port in Camarines Norte will be bidded out soon, says PPA assistant general manager Mark Jon Palomar
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The Sta Clara port, a public-private partnership project to be bidded out in October or November this year, is expected to start next year
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Government will fund the redevelopment of Mercedes port
The Philippine Ports Authority (PPA) expects two offshore wind (OSW) ports to be ready by 2026.
The redevelopment of Sta. Clara port in Batangas and Mercedes port in Camarines Norte will be bidded out soon, according to PPA assistant general manager Mark Jon Palomar.
The Sta Clara port, a public-private partnership project to be bidded out in October or November this year, is expected to start next year, Palomar told PortCalls at the sidelines of celebrations for this year’s 26th National Maritme Week.
The redevelopment of Mercedes port will also be bidded out soon. Mercedes port will replace Jose Panganiban port as one of the first three ports chosen to handle OSW projects.
The soil on Jose Panganiban port was deemed “too soft” and would require a huge investment to achieve the standard required by OSW projects, thus it was replaced by Mercedes port, Palomar explained.
Mercedes port will be redeveloped in two phases, with each phase estimated to cost P2.4 billion. PPA will finance the redevelopment.
The cost for Sta. Clara port may be lower than that of Mercedes port as it will not require berth extension, Palomar said.
The redevelopment of Currimao port in Ilocos Norte, also one of the three initial ports, has been placed on the backburner because of the huge cost: P26 billion.
PPA and the Department of Energy (DOE) last year announced they will work together to repurpose three priority ports to handle OSW projects.
READ: PPA working with DOE to redevelop ports for offshore wind projects
The DOE identified three initial ports–Currimao, Sta. Clara, and Jose Panganiban–as critical to OSW development, given their proximity to high-potential offshore wind energy service contracts (OWESCs).
Former Energy Secretary Raphael Lotilla earlier said the priority ports will serve as vital logistical hubs throughout the lifecycle of offshore wind projects—from installation to commissioning and decommissioning.
He said upgrading the facilities ensures the Philippines is able to accommodate increasing demands of OSW projects, which are expected to deliver a significant contribution to the country’s energy security and economic stability.
PPA general manager Jay Daniel Santiago had also said that while OSW projects require between 23 and 25 hectares for the terminal, PPA ports usually cover only two to five hectares, which means the terminals need to be expanded.
Considering the lack of funds, PPA said it is tapping the private sector under a turnkey basis to undertake the project in phases. Santiago said PPA will only start payment a year after the terminal’s completion and turnover to the ports authority. Payment will have no interest and will be done quarterly within five years.
As of June, DOE said 92 OWESCs have already awarded to date representing over 65 gigawatt in capacity. – Roumina Pablo
READ: PH agencies pledge economic-environment balance in maritime industry
