Davao port in the Philippines could be developed and run by the country’s beer-maker San Miguel Corporation, sources have confirmed.
“San Miguel bought bid documents for the Davao Sasa Port Public-Private Partnership [PPP],” an official with the PPP Center of the Philippines told IHS Maritime on 11 May.
San Miguel, which does have an infrastructure division, is the only company to have bought the bid documents, the official added.
The project is to develop the existing Davao Sasa Port and then run it on a build-transfer-and-operate basis for a 30-year co-operation period.
This has been price-tagged at PHP17 billion (USD377.8 million) by the PPP Center.
The Development Bank of the Philippines is the transaction adviser to the Philippine government, a bank official confirmed to IHS Maritime.
The plan is to turn the existing Davao Sasa Port in Davao City into a modern, international-standard port by providing a dedicated containerised port in the region, the official from the PPP Center added.
The government hopes this will support the region’s growing agro-industrial sector and spur economic growth in Mindanao.
The private partner is expected to finance the construction and modernisation of the existing port, including the new apron, linear quay, expansion of the back-up area, container yards and warehouses.
It is also expected to install new equipment such as ship-to-shore cranes and rubber-tyred gantries over the pre-agreed concession period.
This post was sourced from IHS Maritime 360: View the original article here.
