Gov’t reviews plan to modernize Davao Sasa Port

The government may pursue the modernization of the Davao Sasa Port albeit at a cost lower than what was planned under the public-private partnership ( PPP) scheme, the Department of Transportation said.

Transport Undersecretary Felipe Judan said the board of the Philippine Ports Authority (PPA) is reviewing the plan to modernize the Sasa Port.

The modernization of the Davao Sasa Port was rolled out as a PPP project with an estimated cost of almost P19 billion under the Aquino administration.

Under the terms released by the previous administration, the winning private firm would be responsible for funding the construction and other development works at the port to turn it into a modern container terminal.

The private partner will likewise be handling the operations and maintenance of the port.

Judan said the project was initially estimated to cost only P4 billion, but the value was increased as the scope of the deal was expanded.

Based on discussions during the last meeting of the PPA board, he said there were several comments on the project and it did not seem necessary to undertake it at a higher cost than initially planned as there are other existing ports serving Mindanao including the Davao International Container Terminal.

“So what we decided is, I told the PPA board, take a look, reevaluate it and if it’s necessary to modernize it on the basis of the previous plan, P4 billion, then let’s do it,” he said.

He said the project, if implemented, would involve making the operations of the existing port more efficient.

Apart from just handling cargo, he said the port could also be developed as a tourism port for roll-on/roll-off vessels.

He also said the project could still be implemented as a PPP should there be firms interested to take part in the deal.

The previous administration considered the Davao Sasa Modernization PPP project to be critical to the development of Davao and the Mindanao region.

A study of International Finance Corp. and the Development Bank of the Philippines showed the modernization of the Sasa Port is expected to address the projected six percent annual increase in container traffic in the Davao Region in the coming years.