STEPPING CLOSER: ICTSI’s bid for Iloilo Commercial Port advances to post-qualification phase

(Photo from PPA)

By Mariela Angella Oladive

International Container Terminal Services, Inc. (ICTSI)’s sole bid for the 25-year contract to manage and operate cargo-handling services in the Iloilo Commercial Port Complex (ICPC) was finally declared “passed” by the Philippine Ports Authority (PPA) following a successful rebidding process.

The announcement was made during the live-streamed opening of bids on January 11.

Following the declaration, ICTSI’s bid will advance to the next step involving the proposal undergoing post-qualification.

Once the proposal successfully passes the above phase, the PPA Bids and Awards Committee (BAC) will recommend to the PPA general manager the awarding of the 25-year contract to the Enrique Razon-led ICTSI.

ICTSI’s offer for the 25-year cargo-handling contract includes a concession fee of P750 million for the sixth to the 10th year of the concession period.

The amount is significantly higher than the P500 million minimum specified in the initial contract terms, underscoring ICTSI’s commitment to investment and service excellence in the ICPC.

ICTSI was the sole bidder for the project, initially bid out on December 18, 2023.

The project underwent a re-bidding process after ICTSI’s initial proposal “failed” due to the absence of a notarized Secretary’s Certificate or any document demonstrating proof of authorization attached in the Omnibus Sworn Statement, which is a legal requirement.

Other than the said lacking requirements, ICTSI has fulfilled all other qualifications, which they were given until December 21 to request bid reconsideration.

Since the reconsideration is successful, ICTSI will proceed with operations, management, and various improvements at ICPC.

Among PPA’s requirements for the winning bidder include investment in an internationally-recognized terminal operating system, maintaining PPA-owned equipment and infrastructure, construction of a new 250-meter berth, upgrading the container yard for partial rubber-tired gantry operations, and providing necessary cargo-handling equipment to meet future demand. It also plans to convert ICPC into an exclusive port for international vessels and cargoes to decongest the main gateway in Manila.

Domestic vessels and cargoes will only be allowed in the initial five years of the contract or until completion of the port development project at Fort San Pedro port in Iloilo City proper.