Business World

DoTC asked to explain cost of Sasa modernizat­ion

- By Carmencita A. Carillo Correspond­ent

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.

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SASA WHARF in Davao
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