PPA mulls ending contract over delayed Zamboanga port project

The Philippine Ports Authority (PPA) mulls terminating the agreement of a contractor assigned for the development of the Zamboanga Port project, particularly the two-story passenger terminal that was earlier hit by a Senate lawmaker.

In a statement on Wednesday, the PPA, headed by its general manager, Atty. Jay Santiago, clarified that the delays in the construction of the passenger terminal in Zamboanga port were already reprimanded by its Port Management Office (PMO), Zamboanga, posted last 22 August over the PPA PMO Zamboanga Baseport official Meta (Facebook) page, or days before Senator Erwin Tulfo berated such delays of the project contracted by Mac Builders.

“The Philippine Ports Authority (PPA), through its Port Management Office (PMO), Zamboanga, issued an official statement on 22 August 2025, in response to the matter raised by concerned individuals requesting transparency and updates as posted on their social media pages. The statement may be accessed through the link below: https://www.facebook.com/share/p/1JxUynn6pS/,” the PPA statement on Wednesday stressed.

According to the PPA, the completion of the Zamboanga Port project was unavoidably delayed due to the COVID-19 pandemic, which caused substantial increases in the prices of construction materials and difficulties in mobilizing the required manpower.

“Despite these challenges, the contractor proceeded with implementation, albeit at a very slow pace. The PPA has repeatedly issued formal notices and warning letters to the contractor to expedite the work. At the same time, the Authority also took into consideration the difficulties encountered, granting time extensions where warranted,” the PPA said.

Tulfo, in a press conference on Tuesday, called out the PPA over the unfinished construction of the passenger terminal building in Zamboanga Port, which he said was supposed to be finished by 2023.

“At present, PPA Management is carefully evaluating the possibility of the termination of the contract, citing operational concerns and the need to revise not only the project design but, more importantly, the port’s overall master plan in order to make it more relevant to the demands of the port users and the general public,” the PPA answer on Tulfo’s expose.

Further, the PPA underscored that, as a matter of policy, the PPA does not pay down payments or mobilization payments and does not release any advance payments to the contractor.

“To date, out of the reported 56 percent physical accomplishment, the contractor has only collected 18 percent of the total contract price. This ensures that, should the contract termination be finalized, sufficient funds will remain available to complete the project as planned,” the PPA stressed.

Tulfo further revealed that the project, with a contract price of P 485 million, was delayed 212 days from its target timeline for completion of 720 calendar days.

The original target of completion was set for 13 February 2023, according to Tulfo.

“The PPA remains steadfast in its mission to modernize and develop Philippine ports for the benefit of the Filipino people, ensuring that port facilities serve the needs of trade, commerce, and the local communities they support,” according to the PPA.