BY GEROME DALIPE IV
ILOILO City – The International Container Terminal Services, Inc. (ICTSI) secured the 25-year concession deal to develop and operate the Iloilo Commercial Port Complex (ICPC) – a deal which the city government sees to have a significant impact on the economic growth of the city and the region.
The Razon-led port operator won the bidding for being the lone bidder after passing the technical and financial requirements, said Jay Daniel Santiago, Philippine Ports Authority (PPA) general manager.
In a letter, Santiago informed Mayor Jerry Treñas that the ICTSI passed the technical and financial requirements to implement the project, which will be renamed Visayas Container Terminal after finalizing the contract. ICTSI will soon start operating the port after getting a notice to proceed from the PPA.
“The bidding of the Baseport–ICPC under the Port Terminal Management Regulatory Framework is an indication of PPA’s utmost support and partnership with the city government’s endeavor towards a more modern and developed international port in Iloilo City,” said Santiago.
The PPA announced on Monday, Jan. 29, the notice of award (NOA) to the ICTSI to develop and manage the ICPC with a total project cost of over P10.5 billion.
The PPA said that following the issuance of the NOA, the Office of the Government Corporate Counsel will review the contract before the signing and execution and the issuance of the notice to proceed.
“Although notice to proceed is still to be issued, under the contract, ICTSI must remit 20 percent of annual gross revenues to PPA for the first five years, following a fixed concession fee on the sixth to 10th year, followed by incremental increases based on the consumer price index every three years from the 11th to the 25th year,” it said.
The commercial port spans 627 meters of operational quay length and 20 hectares of land for container and general cargo storage, warehousing, and other cargo-handling activities. It serves the province of Iloilo and Panay Island in Western Visayas.
Data from PPA showed that cargo throughput in Visayas reached 38.1 million metric tons in January to September last year, or about 19 percent of the total cargo volume across the country during the period.
Mayor Treñas welcomed the development, saying it would spur economic development in the city.
“The improvement of our port facilities will pave the way for more international container ship arrivals. It will also have a significant impact on the economic growth of the city and the region,” Treñas said.
As chair of the Infrastructure Development Committee (IDC) of the Regional Development Council (RDC) 6 (Western Visayas), Treñas had been calling for the redevelopment of the port complex into a modern, efficient, and premier gateway not only for Iloilo but the whole of Western Visayas.
Meanwhile, the Iloilo Economic Development Foundation lauded PPA for choosing ICTSI to develop the Iloilo commercial port.
“This decision marks a significant milestone in the development of our region’s critical infrastructure, and we are optimistic that ICTSI’s extensive experience and global reputation will contribute to the port’s transformation into a world-class facility,” said Engr. Terrence Uygongco./PN
