The Philippine Ports Authority (PPA) has formally terminated its contract for the Zamboanga Port passenger terminal building (PTB) project, citing prolonged delays, design misalignment with current needs, and outstretched time extensions granted during implementation, PPA said in a press release dated Monday, September 8.
The agency said the contract needed to be terminated due to operational concerns and despite the repeated issuance of formal notices and warnings to the contractor, which has not been named.
According to James Gantalao, PPA Assistant General Manager for Engineering, the decision was made in response to the matter raised by concerned individuals through social media posts and inquiries requesting for transparency and updates in the PTB project.
"What we envisioned back in 2021 when the project was started no longer met current operational requirements," said Gantalao.
He also stressed that inclement weather, location-specific challenges, and evolving design considerations made it necessary to halt the project under the existing arrangement especially since Zamboanga is one of the busiest and most strategic gateways in Mindanao.
The PPA said the completion of the Zamboanga Port project was delayed due to the Covid-19 pandemic, which caused substantial increases in the costs of construction materials and difficulties in mobilising the required manpower.
The agency said that, despite these challenges, the contractor proceeded with the project's implementation, albeit at a very slow pace. Since then, formal notices and warning letters were repeatedly issued to the contractor to expedite the work.
According to PPA, Zamboanga Port is a major hub for passenger and cargo traffic, serving the Zamboanga Peninsula, the southern Philippine provinces of Basilan, Sulu, and Tawi-Tawi, as well as neighbouring ASEAN countries. The port facilitates the movement of both domestic travellers and international cargo including fish, marine products, and rubber.
The terminal building was originally designed to accommodate 3,500 passengers at any given time. The PPA said that it would have been one of the largest and most modern terminal buildings in the Mindanao island group had it been completed.