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Saturday, September 08, 2007

 

PPA suspends auction for Batangas seaport

By Darwin G. Amojelar Reporter

STATE-RUN Philippine Ports Authority (PPA) on Friday suspended the auction of the second phase of the Batangas seaport because of a Supreme Court decision ordering the agency to pay the affected land owners a higher price for the expropriation of the property six years ago.

In an interview, Benjamin Cecilio, PPA Special Bids and Awards Committee chairperson, said the agency suspended the bidding of the Batangas port because of the High Tribunal’s decision ordering the payment of P11 billion to compensate the 231 residents affected by the Batangas Port development project.

The Supreme Court ordered PPA to pay the residents the amount of P5,500 per square meter with 12-percent annual interest from P300 it paid on September 2001 when the port agency expropriated the land.

The bidding committee on Friday scheduled the submission and the opening of the respective bids of International Container Terminal Services Inc. (ICTSI) and Asian Terminal Inc. (ATI).

“Its unfair on the part of the bidders to let them guess on their bid price when the cost of the property will probably be affected greatly [because of the SC decision] and unfair if I cannot give them the exact evaluation of the impact,” Cecilio told reporters.

He noted that whoever wins the bid will have to pay the taxes. “Kung mag iba ang value nyan syempre iba na ang taxes, mahihirapan silang magforecast [If the valuation changes, then the tax due would likewise change, making it difficult for bidders to forecast]. So we have to suspend that until such time that I get a clear picture of what is really happening,” Cecilio said.

“The problem is if the cost becomes very high the bidders [ICTSI, ATI] might back out. That’s the problem,” he added.

The second phase costing about P5.5 billion was funded by the Japan Bank for International Cooperation. The contract would last for 25 years. The port occupies a 128-hectare area, bigger than the 20-hectare first phase operated by ATI for domestic traffic.

The second phase would be a mix operation of bulk, break bulk and international containerized cargo. The facility could accommodate 7,000 TEUs (twenty-foot equivalent units).

At present, the port serves as the transport hub of goods in the Cavite, Laguna, Batangas, Rizal and Quezon provinces, or the so-called Calabarzon growth corridor. It also functions as a terminal for passengers traveling to and from nearby provinces like Mindoro, Marinduque, Romblon and Palawan.

The Batangas facility is one of 10 ports up for improvement to meet world standards by 2010.

  
 

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