PPA mulls termination of Zambo PTB contract

The Philippine Ports Authority (PPA) is planning to terminate the contract for the construction of a two-story passenger terminal building (PTB) at the Zamboanga Port after Senator Erwin Tulfo called out the agency on the long-delayed project.

“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 said in a statement issued on Wednesday in response Tulfo’s call.

According to the PPA, the completion of the PTB 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 said in a press conference on Tuesday that the PTB was supposed to be finished by 2023.

The project, with a contract price of P485 million, was delayed 212 days from its target timeline for completion of 720 calendar days, the senator added.

The original declared completion date of the PTB was set 13 February 2023, according to Tulfo.

However, PPA assured that, as a matter of policy, it does not give down payment, mobilization payment and advance payment 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 said.