The Department of Transportation (DOTr) is set to award to Korean firm Hanjin Heavy Industries the civil works contract for the construction of the P16.9-billion New Cebu International Port.

Elmer Sarmiento, DOTr undersecretary for maritime, said the agency has obtained the special allotment release order from the Department of Budget and Management two weeks ago and is ready to award the contract this month.

The civil works contract will be awarded to Hanjin Heavy Industry, the only bidder that made the best competitive offer, Sarmiento told reporters at the CMA CGM Philippines Shipping event last Friday.

Construction will also start this October. The project will be completed and operational before the end of the Marcos administration in 2028.

The New Cebu International Container Port project in Consolacion, Cebu, involves the construction of the international container port equipped with quay cranes on a reclaimed island of 25 hectares, with a 500-meter berth length with a water depth of 12 meters to accommodate two 2,000 twenty-foot equivalent unit vessels.

The project will address the congestion at the Cebu International Port.

Sarmiento said the project will be funded through a combination of official development assistance loan and government budget.

The Korean government, through its loan aid agency KEXIM Bank, has extended $172.6 million while the remaining balance will be funded by the government.

In a related development, Sarmiento said the DOTr has proposed to construct and develop over 30 port projects to address connectivity and boost economic growth in the country.

Of the DOTr’s total P180 billion proposed budget for 2025, Sarmiento said over 10 percent or P22 billion is allocated for the maritime sector.