SINGAPORE – The Department of Transportation (DOTr) expects the construction of the P16-billion Cebu international port to start in the third quarter.
The operations and maintenance (O&M) of the port is being eyed as a public-private partnership (PPP) project.
During the Asia Infrastructure Forum organized by Infrastructure Asia, Transportation Undersecretary Timothy John Batan said the agency expects construction of the new Cebu international port to begin by next quarter, after the necessary government approvals are secured.
The project, to be built on a 25-hectare reclaimed area in Consolacion in Cebu, will have two berths that can accommodate 2,000 TEU (twenty-foot equivalent unit) vessels upfront and eventually 4,000 TEU vessels.
Batan said the project has secured the endorsement of the Investment Coordination Committee (ICC)-Technical Board earlier this week.
The next step is to get the approvals of the ICC-Cabinet Committee and the National Economic and Development Authority Board, which is chaired by the President.
“So we’re pursuing our construction, hopefully, starting in the third quarter of this year,” he said.
According to Batan, the target for the project completion is in 2027.
While the construction of the port is going to be funded by a loan from the Export Import Bank of Korea (KEXIM), he said there is an opportunity for the private sector in the O&M of the port.
A $172.64 million loan agreement was signed by the Philippines and KEXIM for the construction of the new international container port in Cebu in 2018.
Currently, only one port is serving foreign container traffic in Cebu.
Batan said the existing port for international container traffic is also very congested.
He said the government is hopeful the project would generate interest from firms, citing it is the biggest opportunity in the Philippines’ port space.