DoTC asked to explain cost of Sasa modernization
DAVAO CITY — A city councilor has asked the Department of Transportation and Communications (DoTC) to explain the “high cost” of the Sasa Port modernization contract, the first seaport project under the public-private partnership which has a floor price for bidders of P17 billion.
“The DoTC had undercut, ignored, and totally undermined the study done by its own agency, the Philippine Ports Authority ( PPA), to favor a much costlier proposal by a foreign consultancy group under the World Bank,” Councilor Danilo C. Dayanghirang said.
Meanwhile, former City Councilor Peter T. Lavina, who chaired the committee on trade and industry and was among those who pushed for the port moderniza- tion project years ago, said he was also surprised at the floor price.
Mr. Lavina noted that the PPA study for the modernization project put the cost at only P4 billion.
“This is more than four times the project cost based on the PPA study and three times the cost of the redevelopment of the Hijo Port in Tagum, Davao del Norte, which is pegged at P5.7 billion,” Mr. Lavina said. He also noted that the Davao International Container Terminal (DICT) of San Vicente Terminal and Brokerage Services, Inc. in Panabo City, also in Davao del Norte province, only cost P2.65 billion.
DICT, which started operations in 2013, is currently considered the most modern container port in the Davao Gulf with a capacity of 400,000 40-foot equivalent units per year.