Metro Pacific, PPA to iron out deal on North Harbor project

Metro Pacific Investments Corp. (MPIC) plans to enter into a compromise agreement with the Philippine Ports Authority (PPA) and its special bids and award committee on the public bidding for the Manila North Harbor modernization project.

It was not immediately known what the compromise agreement will cover but sources said MPIC may withdraw a case filed earlier against the PPA after the latter refused to grant the 25-year contract to lone bidder MPIC and its partner Harbour Centre Port Terminal Inc., a company owned by businessman Reghis Romero.

The joint venture of Harbour Centre and MPIC earlier bid for the Manila North Harbor privatization project and emerged as the sole bidder, resulting in PPA declaring a failure of bidding.

The project, estimated to cost P10 billion, will involve the modernization of the Manila North Harbor through the operation and management of its various facilities and services by a private sector operator in a build-operate-transfer arrangement with PPA.

It aims to ensure the development of modern port terminal facilities, including the provision of the state-of-the-art equipment, and guarantee their repair and maintenance without cost to the government; to attain the optimum level of port efficiency at the most reasonable and competitive price in the delivery of port services to the port users and the general public; and to generate sufficient funds for the amortization of existing loans for Manila North Harbor and attain a reasonable return on the PPA investment in such facilities

The modernization of the country’s largest and busiest seaport is a top priority project of President Arroyo.

Auctioned off are North Harbor’s container terminal, general cargo terminal, and the passenger terminal complex. PPA will bid out the terminal to a single operator that will market the facilities to other concessionaires.

Its Terminal 1 will service roll-on, roll-off (ro-ro) container and passenger vessels. Terminal 2 will service container and passenger vessels, while Terminal 3 will be for conventional, non-containerized, bulk or break-bulk vessels and passenger vessels.