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The Philippine Ports Authority is preparing to negotiate the terms and conditions of International Container Terminal Services, Inc.’s application for the renewal of its contract to operate Manila International Container Terminal beyond 2038
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PPA assistant general manager Elmer Nonnatus Cadano said initial evaluation of ICTSI’s application showed it is already “sufficient in form and substance”
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ICTSI submitted its application last November, triggering the contract renewal process under PPA’s new guidelines
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Under the guidelines, the Committee may recommend either returning the application if the concessionaire is found to be unqualified or commence with the negotiation if qualified.
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The negotiation should be undertaken within 60 days starting from the day of approval by the general manager
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If the Board disapproves, and the Committee and the concessionaire fail to agree on mutually acceptable terms and conditions one year prior to the expiration of the existing contract, all negotiations will automatically cease
The Philippine Ports Authority (PPA) is preparing to negotiate the terms and conditions of International Container Terminal Services, Inc.’s (ICTSI) application for the renewal of its contract to operate Manila International Container Terminal (MICT) beyond 2038.
PPA assistant general manager for finance, legal and administration Elmer Nonnatus Cadano, who chairs the Committee on Seaport Terminal Management Contract Renewal, said initial evaluation of ICTSI’s application showed it is already “sufficient in form and substance.”
The next step is to “seek authority to negotiate” from the PPA Board.
PPA general manager Jay Daniel Santiago also told PortCalls on the sidelines of a recent PPA press briefing that the agency may present the findings of the committee on its evaluation of ICTSI’s application and if found to be complete in form and substance, “we will ask authority to negotiate.”
Under PPA’s guidelines, the Committee may recommend either returning the application if the concessionaire is found to be unqualified for renewal or commence with the negotiation of the terms and conditions of the renewal of contract if the concessionaire is found to be qualified.
The negotiation should be undertaken within 60 days starting from the day of approval by the general manager.
Upon conclusion of the negotiations, the Committee and the concessionaire should jointly prepare the proposed renewal contract for approval by the PPA general manager, who will then endorse the proposed renewal contract to the PPA Board for approval.
If approved by the Board, the proposed renewal contract will be up for review by the Office of the Government Corporate Counsel (OGCC).
Once the opinion of the OGCC on the proposed renewal contract is obtained, the decision of the PPA Board will be formally conveyed to the concessionaire within seven days from the issuance of the review.
In case of approval, the PPA general manager and the concessionaire will execute the renewal contract.
If the PPA Board disapproves the terms and conditions of the renewal contract, the Committee and ICTSI will renegotiate until mutually acceptable terms and conditions are agreed upon.
If the Committee and the concessionaire fail to agree on mutually acceptable terms and conditions one year prior to the expiration of the existing contract, all negotiations will automatically cease and PPA will commence the process for the bidding of the contract instead.
PPA, in a notice posted last month, said it received ICTSI’s application on November 18, 2025.
READ: ICTSI files renewal application for MICT contract
The application for renewal is pursuant to PPA Administrative Order (AO) No. 007-2023, which provides the new guidelines on the renewal of existing contracts on seaport terminal management services. PPA previously did not have a provision for contract renewal.
The guidelines are in line with changes under Republic Act No. 11659, or the Amended Public Service Act, and its implementing rules and regulations (IRR). Under the law, which relaxes foreign ownership restrictions in certain industries, seaports remain as public utilities.
As part of the procedures, the notice of application for renewal of contract was published in November to allow all interested parties to submit their comments on the application within a period of five calendar days from the date of publication.
ICTSI was granted exclusive management, operation and development of MICT – the group’s flagship terminal – for a period of 25 years starting May 18, 1988, renewed/extended for another 25 years from May 19, 2013 until May 18, 2038.
ICTSI executive vice president Christian Gonzalez earlier told PortCalls long-term planning is crucial for a capital-intensive venture such as port operations.
“This is a highly capital-intensive business which requires significant investments in infrastructure and equipment across the entire life of a concession,” he said.
“Given the growing requirements for new more advanced technology, the need to support growth, the age of existing assets, and the need to invest further outside the terminal (roads, support access, etc.), substantial additional capital commitments are needed from now until 2037. As such, an extension has been requested to ensure that these investments are viable,” Gonzalez said.
Under AO 007-2023, a holder of a valid and existing contract or agreement for the provision of seaport terminal management services may apply for renewal when at least half of the stipulated duration of the existing contract or agreement has been completed.
The application for renewal must also be no later than three years before the expiration of the contract.
In its application dated November 18, ICTSI noted that at least half of the extended term of the contract has already been completed as of November 17, 2025.
ICTSI earlier said its expansion program for MICT includes the development of Berth 8 and other infrastructure upgrades, which increase terminal capacity and streamline operations. The port operator has also been deploying more hybrid/net zero emission equipment as part of its decarbonization strategy.
READ: ICTSI adds 8 hybrid rubber-tired gantries at MICT
Gonzalez, who was the company representative in the renewal application, said ICTSI meets the other criteria under AO 07-2023.
Further, ICTSI possesses all the qualifications and none of the disqualifications provided for under the Public Service Act and its IRR, including, but not limited to, the nationality requirement. — Roumina Pablo
