State-run Philippine Ports Authority cleared the proposal of International Container Terminal Services Inc. to develop Iloilo ports for P8.7 billion.
ICTSI secured a letter of acceptance for completeness from PPA in accordance with the Revised Guidelines and Procedures for Entering into Joint Venture Agreement between Government and Private Entities (2013 NEDA JV Guidelines).
PPA will now begin to evaluate the legal, financial and technical merits of ICTSI’s proposal to modernize the Iloilo Commercial Port Complex and the Port of Dumangas within 60 days.
“We are excited about this development as we know we submitted a fully compliant proposal that will be the most beneficial for Iloilo. We are fully committed to working with the PPA on this project and are hopeful to be granted original proponent status,” ICTSI global corporate head Christian Gonzalez said.
“With the Transportation Department’s recent directive to fast track unsolicited bids for port projects, we are confident that we will be able to assist the Philippine government more in its goals of upgrading the country’s port network; and help Iloilo attain its full potential in facilitating even greater trade facilitation that will improve connectivity for cargo movement within the country,” Gonzales said.
ICTSI said that once it received the OPS, the proposal would be turned over to the National Economic and Development Authority for evaluation. If it was approved by NEDA, the proposal would go through a Swiss challenge.
Over the life of the concession that will be agreed on with the PPA, ICTSI said it would invest more than P8.7 billion to fully develop the Iloilo Port Complex, including dredging and deepening of the drafts and channel to allow the direct entry of new generation, international vessels; and purchase of modern quayside crane handling equipment estimated to cost around P1.35 billion.
ICTSI is also offering to substantially invest in the development of the Port of Dumangas to seamlessly handle the spill-over from the city port.
The Iloilo-Dumangas bid is ICTSI’s first foray in the Visayas with the end goal of providing a national network of ports with ICTSI’s brand of operational synergy that would further improve the country’s supply chain and competitiveness in global trade.
ICTSI earlier reported a net income of $184.9 million in the first nine months, up 29 percent from $142.9 million a year ago.
Revenue from port operations increased 3 percent to $355.6 million from $344 million.
ICTSI handled consolidated volume of 7,590,090 twenty-foot equivalent units in the nine-month period, or 6 percent higher than 7,152,392 TEUs it handled in the same period in 2018.