Tuesday, July 7, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE GOVERNMENT is proceeding with the second phase of Batangas Port’s privatization after securing a favorable Supreme Court ruling in connection with a land dispute.
Officials said pre-bid proceedings had ended and eligible bidders would soon be asked to submit offers. Asian Terminals, Inc. and International Container Terminal Services, Inc. (ICTSI) are expected to slug it out, they said.
"We are very happy with the court decision trimming down the total compensation from almost P14 billion to just P1 billion," Philippine Ports Authority (PPA) General Manager Oscar M. Sevilla told reporters yesterday.
The Supreme Court last month said the PPA should pay a total of P1 billion to 231 individuals owning lots and properties expropriated in 2001. The court said lot owners had to be paid P425 per square meter since the properties were mainly undeveloped agricultural lands, instead of the P5,500 set in an earlier ruling.
Mr. Sevilla said claimants could file a motion for reconsideration but "it will be hard for them to overturn the decision."
"We will immediately resume the public bidding for Batangas Port and hopefully have it fully operational by the end of the year."
A timetable was not immediately available.
Leopoldo F. Bungubung, PPA assistant general manager for operations, told reporters that the bidders for the Batangas Port deal were down to just two: Asian Terminals and ICTSI.
Asian Terminals, operator of the Manila South Harbor, has the exclusive right to operate in Batangas Port Phase I. It also has contracts to operate the Mariveles Grain Terminal in Bataan and the South Cotabato port, as well as Makar Wharf in General Santos.
ICTSI, meanwhile, has 19 terminals and port projects in 13 countries, including the recently upgraded Suape Container Terminal in Brazil.
Phase two of Batangas Port’s development involves a mixed operation of bulk, break bulk, and international containerized cargo, but will not include passenger terminal. — JFDG
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