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The Philippine Ports Authority formally terminated on September 4 its Zamboanga Port contractor
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The agency cited prolonged delays, design misalignment with current needs, and outstretched time extensions granted during implementation as reasons for its decision
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To date, out of the reported 56% physical accomplishment, the contractor has only collected 18% of the total contract price
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PPA said it will try to rebid the contract within the year
The Philippine Ports Authority (PPA) formally terminated on September 4 its Zamboanga Port passenger terminal building (PTB) contractor. The agency cited prolonged delays, design misalignment with current needs, and outstretched time extensions granted during implementation as reasons for its decision.
The move was prompted by calls on social media requesting for project transparency and updates, PPA said in a statement.
PPA confirmed MAC Builders as contractor for the P485-million project. The company was awarded the project on January 21, 2021 after having been declared the lowest calculated and responsive bidder. The project should have been completed 720 days from date of receipt of the Notice to Proceed.
The ports agency said it will try to rebid the contract within the year.
“Unfortunately, we had to terminate the contract because what we envisioned back in 2021 when the project was started no longer met current operational requirements,” PPA assistant general manager for engineering James Gantalao said.
He added that inclement weather, location-specific challenges, and evolving design considerations made it necessary to halt the project under the existing arrangement especially since Zamboanga is one of the busiest and most strategic gateways in Mindanao.
The PPA said completion of the Zamboanga port PTB project was unavoidably delayed due to the COVID-19 pandemic, which caused substantial increases in the prices of construction materials and difficulties in mobilizing the required manpower. Despite these challenges, the contractor proceeded with its implementation, albeit at a very slow pace. Since then, PPA said it has repeatedly issued formal notices and warning letters to the contractor to expedite the work.
The PTB project was originally designed to accommodate 3,500 passengers at any given time, making it one of the largest and most modern terminal buildings in Mindanao. According to Gantalao, the original goal since 2021 has always been to give passengers a terminal experience with spacious areas while
waiting for their voyages, air-conditioned, comfortable seating and proper facilities.
In a statement on August 20, PPA Port Management Office-Zamboanga clarified that the project is funded from PPA’s corporate budget and not from general appropriations.
“As a matter of policy, the PPA does not pay any downpayment nor mobilization payments and has not released any advance payments to the contractor,” said Gantalao.
To date, out of the reported 56% physical accomplishment, the contractor has only collected 18% of the total contract price.
“This ensures the public that sufficient funds will remain available to complete the project as planned, to give the riding public the best kind of services they deserve,” Gantalao added.
Cargo-handling operations at the port are handled by a different concessionaire.
