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The Philippine Ports Authority has repealed its own rules for bidding out port terminal management contracts
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Contracts that qualify as public-private partnership projects projects will now follow the PPP Code (Republic Act 11966)
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General Santos, Balingoan and Jasaan ports are next in line for bidding under the new rules
The Philippine Ports Authority (PPA) has repealed its own rules for bidding out port terminal management contracts (PTMCs). From now on, it will follow the Public-Private Partnership (PPP) Code of the Philippines.
PPA Administrative Order (AO) No. 010-2026 repeals AO No. 03-2016 and AO No. 12-2018, both as amended.
AO No. 03-2016 set up PPA’s port terminal management regulatory framework (PTMRF), the guidelines for awarding PTMCs. One of its goals was to bring private companies into port operations to improve service quality. AO No. 12-2018 laid out how contracts under the PTMRF are selected and awarded.
The new order also repeals all later amendments, supplemental guidelines and related PPA issuances that only implemented or supplemented the PTMRF and its bidding and award procedures, as far as they apply to projects covered by AO No. 010-2026.
Any other PPA AOs, memorandum circulars, memorandum orders, guidelines, procedures or issuances that conflict with AO No. 010-2026, Republic Act (RA) No. 11966 or its implementing rules and regulations (IRR) are repealed, amended or modified to match.
Since PPA began bidding out ports under the PTMRF in 2020, it has bid out about 20 ports, including Davao port and the Iloilo Commercial Port Complex.
PPP Code now governs port contracts
Under AO No. 010-2026, PPA adopts RA No. 11966, the PPP Code of the Philippines, and its IRR as the rules for PTMCs that qualify as PPP projects.
RA No. 11966 creates a single legal framework for developing, approving, procuring and implementing PPP projects at both the national and local levels. It clears up gaps and ambiguities in the Build-Operate-Transfer Law and other PPP rules issued before the code took effect.
The law was signed on December 5, 2023, and took effect on December 23, 2023. After a ceremonial signing on March 21, 2024, its IRR was published on March 22, 2024, and took effect on April 6, 2024.
Once the IRR took effect, PPA suspended bidding for several ports under the PTMRF. PPA Assistant General Manager for Operations Mark Jon Palomar earlier said the agency would stop using the PTMRF for PTMC bidding because the PPP Code “did away with separate guidelines” for privatization projects.
PPA has since started feasibility studies and public consultations for ports whose PTMCs it plans to bid out, including General Santos, Balingoan and Jasaan.
Bidding for General Santos port has been pushed back, but it could still start this year. PPA had to revisit its feasibility study after the southern Mindanao port was damaged by the magnitude 7.8 earthquake off Sarangani in June.
Balingoan and Jasaan ports will be bid out together as one port cluster. Under PPA’s port clustering policy, two or more ports can be offered under one contract so the deal is commercially viable for the winning operator.
Port operators and investors eyeing PPA terminal contracts will now bid under one national PPP process instead of PPA-specific rules. Shippers and carriers using General Santos, Balingoan and Jasaan should watch the bidding timelines, since a new operator could bring changes in services, investments and port charges. – Roumina Pablo
