The Philippine Ports Authority (PPA) Board has approved a request to abandon the P19.8-billion plan to redevelop Davao-Sasa port and will instead review a previous feasibility study that recommends a lower project cost of less than P5 billion.
PPA general manager ay Daniel Santiago said the National Economic and Development Authority (NEDA), which is part of the PPA Board, suggested that PPA submit a request to the NEDA Board, chaired by President Rodrigo Duterte, to withdraw the P19.8-billion project. This is because the PPA Board-approved budget has been reduced to between P4.7 billion and P4.9 billion, below the P5-billion threshold for projects that require NEDA Board approval.
Asked if the planned project will undergo public-private partnership scheme, Santiago said that while it is an option, PPA is thinking that “we can fund it on our own.”
READ: SC asked to stop Davao-Sasa port modernization project
Santiago said this is because they are mulling operating Davao-Sasa as a government port, noting arguments for continued government presence in that area “in order to make sure that the port fees, cargo fees will be maintained.”
The PPA chief earlier said “it will be faster and easier, and it will be better for the people, if PPA is the one who develops it first,” adding that PPA has provisionally earmarked some budget for that next year.
“Anyway, if the government wants to privatize it later on we can just tuck in the cost… rather than give it up to private [operators]. Of course the cargo rates will increase,” Santiago pointed out.
He said the use of internal funds is possible since development will be in phases to avoid hampering traffic at Davao-Sasa port. He said another measure to make sure that affected shipments, especially those going southwest of Davao, have other options besides Davao-Sasa is to develop other ports. He cited the small port of Malalag as one with a huge potential owing to its safe layup area.
The PPA chief said there should be “some movement” in the project by the first quarter of next year.
Bidding for the Davao-Sasa port modernization project was postponed three times by the Aquino administration before the new government took over.
