PPA junks Zambo port’s contract

The Philippine Ports Authority (PPA) on Monday terminated the contract for the construction of the Zamboanga Port Passenger Terminal Building (PTB) project, which was the subject of scrutiny of a Senate lawmaker recently.

In a statement, the PPA stated that the termination of Mac Builders’ contract, effective 4 September, was due to prolonged delays, design misalignment with current needs, and overstretched time extensions granted during implementation, despite repeated issuance of formal notices and warnings to the contractor.

According to the PPA assistant general manager for engineering James Gantalao, the decision was made in response to the matter raised by concerned individuals requesting transparency and updates in Zamboanga port project through social media posts and inquiries.

“Unfortunately, we had to terminate the contract because what we envisioned back in 2021, when the project was started, no longer met current operational requirements,” Gantalao said.

Busiest Mindanao gateway

Gantalao stressed that inclement weather, location-specific challenges, and evolving design considerations made it necessary to halt the project under the existing arrangement, especially since Zamboanga is one of the busiest and most strategic gateways in Mindanao.

He maintained that 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 the challenges, the contractor proceeded with its implementation, albeit at a very slow pace. Since then, the PPA has repeatedly issued formal notices and warning letters to the contractor to expedite the work.

The Zamboanga Port is a central hub for passenger and cargo traffic, serving the 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 PTB was initially designed to accommodate 3,500 passengers at any given time, making it one of the most significant and most modern terminal buildings in Mindanao.

As per PPA AGME Gantalao, the original goal since 2021 has always been to give passengers a terminal experience with spacious areas while waiting for their voyages, air-conditioned, comfortable seating, and proper facilities.

“As a matter of policy, the PPA does not pay any down payment nor mobilization payments and has not released 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 the public that sufficient funds will remain available to complete the project as planned, to give the riding public the best kind of services they deserve,” emphasized Gantalao when asked about the funds allocated for the project.

“As to the issue of ticket scalping raised by Senator Raffy Tulfo during his privilege speech, the PPA remains committed to respecting the boundaries of its authority since it is not within its mandate to intervene with the selling of vessel tickets.”

“Thus, the PPA continues to collaborate with the necessary government agencies like Maritime Industry Authority, Philippine Coast Guard and the local government of Zamboanga City to advocate for the essential changes that require collaborative efforts for the general public,” the PPA maintained.