PPA terminates contract for Zamboanga port passenger terminal

MANILA, Philippines — Because of delays and design misalignment, the Philippine Ports Authority terminated its contract with MAC Builders Inc. for the construction of the Zamboanga port passenger terminal building, the PPA announced yesterday.

James Gantalao, PPA assistant general manager for engineering, said the contract was terminated on Sept. 4 as the project, as envisioned in 2021 when the construction also started, “no longer met current operational requirements.”

Aside from this, Gantalao said the PPA also considered inclement weather, location-specific challenges and evolving design considerations in its decision.

The project was supposed to have been completed in 2023 but was “unavoidably” delayed by the COVID-19 pandemic, a PPA statement read.

Gantalao said the delay caused substantial increases in the prices of construction materials as well as difficulties in mobilizing the required manpower.

He assured the public that MAC Builders had collected only 18 percent of the total contract price, leaving sufficient funds to complete the project.

Zamboanga is one of the busiest and most strategic gateways in Mindanao.

It is a hub for passenger and cargo traffic serving Zamboanga Peninsula, Basilan, Sulu and Tawi-Tawi as well as neighboring ASEAN countries.

The port facilitates the movement of both domestic travelers and international cargo, including sardines, marine products, coconut, rubber and aquaculture goods, making its modernization a critical priority for regional trade and economic growth.

The passenger terminal was originally designed to accommodate 3,500 passengers at any given time, making it one of the largest and most modern terminal buildings in Mindanao.