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Sunday, May 19, 2024

Senate panel probes ‘gold-plated’ port  

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The Senate Public Service Committee chaired by  Senator Serge Osmeña  on Wednesday started digging into  the  “gold-plated” Davao Sasa Port under the watch of  Transportation and Communication Secretary Joseph Emilio Abaya.

Osmeña said he had  received many complaints about the alleged overpriced modernization program of  Sasa Port  whose cost  was  initially placed at P4 billion, but suddenly  grew to P19 billion.

At the   Senate hearing Wednesday, Osmeña    directed Abaya to look for a project that would not cost that much—not a “gold-plated port.” The DOTC will  oversee the expansion of the Sasa port through public-private partnership.

Osmeña said complaints were mounting from  the Davao   business community. “They were complaining    that the first estimate was P4 billion then all of a sudden when a new study was undertaken by a German company, it ballooned to P19 billion ,” said Osmeña.

The P19-billion    project, Osmeña said, would mean an 80 percent increase in the rate per container.

He  said those who will be adversely affected by the port modernization also complained about the rush in the bidding which was set in April next year.   

Osmeña  ordered Abaya to make a simplified economic justification for the P19 billion cost.   

Osmeña said they would check how they can lower or mitigate the rate increase by up to 20 percent    and what they will be able to give up in terms.   

Osmeña said he does not see the need to dig 14 meter for the port to accommodate big ships since there are no big ships going to Davao. Alexander Valoria, president of the Anflo Management and Investment Corporation, stressed there is no need    to convert Sasa Port to a container port because the container shipping requirements are already met by the existing private ports such as Davao International Container Terminal (DICT), Tefascok Sumifru, Unifrutti, Dole/Pacinger.

In 2014,   Valoria 75 percent of foreign containers  started  using the these private ports. He said the activity in Sasa Port is more for local trade.

He also noted that the PPP Project is based on  unrealistic projections.     PPA’s original estimate was only P4 million. The initial PPP proposal by the Philippine Ports Authority (PPA) estimated that P4 billion was needed to modernize Sasa Port. He said this was not accepted by the DOTC, which   together with the Development Bank of the Philippines appeared to have commisioned Hamburg Port Consultants (HPC) to conduct a study that would serve as the basis for the Sasa PPP.

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