The state-run Philippine Ports Authority plans to re-bid the contract for the construction of the Zamboanga Port Passenger Terminal Building this year, after the previous contractor incurred prolonged delays, ignored red flags, and failed to meet project deadlines.
Yesterday, September 8, the PPA said it terminated its contract with MAC Builders Inc. on September 4, and would put the project on the auction block within the year.
Engr. James Gantalao, PPA assistant general manager for engineering, said in a statement that the decision was made in response to the matter raised by concerned individuals requesting transparency and updates in the 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. He also 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.
The completion of the Zamboanga Port project was unavoidably delayed due to the COVID-19 pandemic, which caused a substantial increase in the prices of construction materials and difficulties in mobilizing the required manpower.
Despite these 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 Passenger Terminal Building was originally designed to accommodate 3,500 passengers at any given time, making it one of the most significant and modern terminal buildings in Mindanao.
Gantalao said the original goal since 2021 has always been to give passengers a pleasant 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,” Gantalao said.
To date, Gantalao said that out of the reported 56 percent physical accomplishment, the contractor has collected only 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”, Gantalao emphasized.
On the issue of ticket scalping raised by Senator Raffy Tulfo during his privilege speech, the PPA said it remains committed to respecting the boundaries of its authority since it is not within its mandate to intervene with the selling of vessel tickets.
