Japanese to build $215-M Subic port

By Patrick Roxas, Central Luzon Bureau Chief

It’s now official.

A Japanese consortium, which submitted the lowest bid for the construction of the $215-million port modernization project in Subic, has formally signed an agreement with the Subic Bay Metropolitan Authority (SBMA) to start the project.

The Penta Ocean-led joint venture with Shimitsu Corp. and TOA Corp. signed the deal Friday and was given the certificate of award after passing a thorough evaluation period by the SBMA’s bids and awards committee to carry out the long-delayed Subic port development project. “Finally, we have signed the contract agreement for the carrying out of the Subic port development project that is seen to breath life, so to speak, and spur economic stability to the rest of the Central Luzon area and create employment to residents,” said Chairman Felicito C. Payumo of the SBMA.

Payumo added that Penta submitted a financial bid worth P5.22 billion for the total cost of the project, which is 25 percent less than the agency estimate of about P6.99 billion.

“Therefore, some P1.76 billion will be saved with Penta’s bid,” he said.
The construction of the port development project, which is expected to commence early next month, will be financed by the Japan Bank for International Cooperation (JBIC). The JBIC granted the loan on August 2000.
Payumo added that the Subic port development project is one of the two flagship projects under the global gateway concept, which envisions Central Luzon as the growth center, linking seven development areas and “breathe life” to the region’s declining growth and in the equitable distribution of the region’s wealth.

On December 18, the bids and awards committee of the SBMA opened the financial bids for the said project submitted by two Japanese bidders, Penta Ocean Group-led joint venture with Shimitsu Corp. and TOA Corp., and Toyo Corp.

Earlier last year, three Japanese bidders submitted two envelopes for the project. One containing their technical bid and the other containing their financial bid. The technical bid envelopes were opened earlier and was the basis for the final qualification.

A third bidder, Nishimatsu, was disqualified for submitting proposal with substantial defects after the technical bid envelopes were opened.
The bidding was opened before the officials of the SBMA, the Commission on Audit, members of the media, representatives from the Subic Bay Chamber of Commerce and the representatives of the bidders. Payumo further said the reason why the bids opening was well-attended was because he wanted to make things “as transparent as possible.”

The Subic Bay port development project is financed by the JBIC through a loan on ideal financing terms. Payumo disclosed that the construction will formally start with the groundbreaking ceremony, which is scheduled in the middle of April