February 28, 2017

PPA Requests DOTr, NEDA to cancel Sasa Port Modernization Project

In a press con, Emma Susara, manager for commercial services department at the PPA said that PPA is requesting the DOTr to send a letter to NEDA to cancel the Davao Sasa Port Modernization project.
The project costs P19 billion.
“We cannot just drop it. We need to request for cancellation or closure,” she said.
Susara reasons that the cost and parameters of the deal hinders the project from completing.
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Based on the initial plan of the PPA, the project was estimated to cost close to P5 billion.
When the project was rolled out under the PPP program by the previous administration, the cost rose to almost P19 billion due to expanded scope.
According to the Philippine Star, Susara said "there were also issues in terms of which agency would implement the project, the concession fee, tariff increase, collection and sharing of port charges, viability gap funding, as well as competing ports in the area."
“As soon as DOTr submits a letter to NEDA and we get approval of NEDA...it will start the ball rolling,” she said.
For now, she said the PPA is looking at what it can do to start upgrading the facility.