PPA still awaiting revised engineering plan for Chelsea’s Sasa Port proposal

THE Philippine Ports Authority (PPA) said it remains in discussions with Chelsea Logistics Corp. (CLC) for amendments to its proposal to develop, operate and maintain Davao’s Sasa Port before it can be granted original proponent status (OPS).

“Still in discussions with Chelsea as the proponent to thresh out certain adjustments on their proposed engineering design for the development,” Jay Daniel R. Santiago, PPA General Manager, told reporters in Manila on Friday.

“Until and unless they resolve that, the engineering concerns on their proposals, that’s the only time they can proceed for processing it for purposes of granting the original proponent status,” Mr. Santiago added.

Last year, CLC, controlled by Dennis A. Uy, submitted a P11.2 billion unsolicited bid to rehabilitate Sasa Port.

Mr. Santiago said that there is no timeline yet for granting OPS and proceeding with the project, as CLC needs to adjust the design based on the requirements of PPA’s engineering office.

“What we want to happen (is that) PPA has a long-term plan for the development of Davao ports… and we want to make sure that proposal will be compliant with the long term development plans,” Mr. Santiago said, noting that after the proposed concession period, the assets will be owned by the government.

“That’s why we are very critical (of) engineering design,” Mr. Santiago said.

On Monday, CLC closed at P5.95, down 1.65%.

CLC’s net income attributable to the parent fell 72% to P43.01 million in the first nine months of 2018, after a 61% gain in gross revenue to P3.69 billion during the same period. —