The International Container Terminal Services Inc. (ICTSI) said on Monday it has received the notice of award for the operation and development of Iloilo Commercial Port Complex (ICPC).
According to a disclosure to the stock exchange, the Philippine Ports Authority has awarded the 25-year contract to ICTSI, which will start the operations of the facility “upon contract signing and PPA’s issuance of the notice to proceed.”
Under the bid parameters set by the regulator, ICTSI will remit to the government P500 million per year starting the sixth year until the 10th year as concession fees. Another P100 million should be remitted as annual fee.
“We are elated and grateful to be entrusted with the redevelopment of the Iloilo Port. We recognize the port’s pivotal role in driving Iloilo’s economic and social growth. Our comprehensive proposal outlines significant investments in infrastructure upgrades, cargo-handling equipment, and operational efficiency measures, all aimed at transforming the Iloilo Port into a premier gateway,” ICTSI EVP Christian R. Gonzalez said.
The Razon-led port operator had submitted an unsolicited proposal to modernize the ICPC with an estimated investment plan of about P5 billion. The first proposal was submitted in 2019, but later on withdrew from the race due to the slow movement of its offer.
ICPC will be renamed to Visayas Container Terminal (VCT). Gonzales describes it as a “critical gateway for trade in the Western Visayas.”
He said ICTSI’s involvement aims to tackle “capacity efficiency constraints” to “unlock the port’s economic engine.”
VCT is ICTSI’s first project in the Visayas.
“As with all our projects, we will do all to make this a success and make Iloilo key to improving the country’s supply chain and competitiveness in global trade,” Gonzales said.
VCT has 627 meters of operational quay length and 20 hectares of land for container and general cargo storage, warehousing, and other cargo-handling activities.
The invitation to bid for the port project was published on December 21 and the deadline to submit bids was scheduled for January 11.