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.
