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The Philippine Ports Authority is rebidding the contract for the construction of a two-storey passenger terminal building at Zamboanga port
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PPA said it intends to apply P580 million of its 2026 budget for the contract
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A pre-bid conference is scheduled on October 29 while the deadline of submission of bids is on or before November 11, the same day for the opening of bids
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PPA in 2021 had already awarded a contract to construct a PTB for Zamboanga port, but terminated it in 2025 due to prolonged delays, design misalignment with current needs, and outstretched time extensions granted during implementation
The Philippine Ports Authority (PPA) is rebidding the contract for the construction of a two-storey passenger terminal building (PTB) at Zamboanga port.
In an invitation to bid dated October 20, PPA said it intends to apply P580 million of its 2026 budget for the contract to construct the PTB at the Zamboanga City port. The project must be completed in 540 calendar days.
Bidding will be conducted through open competitive bidding procedures using a nondiscretionary “pass/fail” criterion as specified in the implementing rules and regulations or Republic Act No. 12009, otherwise known as the New Government Procurement Act.
Interested bidders should have completed a contract similar to the project.
A pre-bid conference is scheduled on October 29 while the deadline of submission of bids is on or before November 11, the same day for the opening of bids.
Prior to this, PPA in 2020 had already bid out a contract to construct a PTB in Zamboanga port.
Last year, however, PPA formally terminated its contract with the contractor for the project, citing prolonged delays, design misalignment with current needs, and outstretched time extensions granted during implementation.
According to a Notice of Award dated January 21, 2021, the project was awarded to MAC Builders for P485 million. MAC Builders was declared as the lowest calculated and responsive bidder for the project. Based on the invitation to bid posted in 2020, completion of works should be 720 days from the date of receipt of the Notice to Proceed.
“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 earlier 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 the 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.
Funds from the PPA budget
PPA Port Management Office-Zamboanga also 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.—Roumina Pablo
