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Davao City opposes Sasa Port project; to push Sta. Ana Wharf

The city government of Davao is pursuing the development of the Sta. Ana Wharf to pose further competition to Sasa Port, which the national government is currently offering to bidders for a minimum contract price of P17-billion.

This week, representatives of the city government will set a meeting with the Sta. Ana reclamation proponent, Mega Harbour Development Corp., to continue discussions on the unsolicited P39-billion mixed-use project.

In a statement, Davao City Investment Promotions Center head Ivan C. Cortez said: “If the Sta. Ana project is approved way ahead of the Sasa Port project, then the latter will become useless.”

He pointed out that the Sta. Ana plan, which will involve the reclamation of about 200 hectares, includes a pier for deep-sea cargo vessels aside from the commercial and residential components.

The proposed pier design can accommodate at least five vessels of ‘Panamax’ size, which is suitable for transiting the Panama Canal and require a dock length of about 290 meters.

According to Mr. Cortez, the city government will present 12 talking points during the meeting.

With endorsement from the city council, the city government and the proponent initially agreed that 40 hectares within the reclamation complex will be given to the local government for its own development and operations.

Part of the 40-hectare area will be allocated as a relocation area for residents currently living in disaster-prone areas.

The city is looking at a “PPP within a PPP” setting, with the government bidding out the development of its area.

Earlier, the city government asked Mega Harbour to undertake an additional study covering the impact of its proposed project to vehicular and human traffic flow vis-à-vis the city’s downtown area.

The proposal includes the construction of a new coastal road.

Discussions on the Sta. Ana Wharf project had been put on hold as the city government is lobbying for amendments in the Build-Operate-Transfer (BOT) Law of 1991, under which BOT and PPP projects require approval from the National Economic and Development Authority (NEDA).

The same law governs the PPP program of the government.

The Davao council passed last year a resolution serving as a local version of the BOT Law.
 

 

 

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