THE Philippine Ports Authority (PPA) said it terminated the contract of MAC Builders, Inc., which was to build a passenger terminal building for the Port of Zamboanga, due to design issues and delays.
“What we envisioned back in 2021 when the project was started no longer meets current operational requirements,” PPA Assistant General Manager for Engineering James J. Gantalao said in a statement on Monday.
Mr. Gantalao also cited location-specific challenges and design considerations, without providing detail, while attributing some of the delays to the pandemic, which rendered initial cost estimates for building materials obsolete.
“Despite these challenges, the contractor proceeded with its implementation, albeit at a very slow pace. Since then, the PPA has repeatedly issued formal notices and warning letters to the contractor to expedite the work,” he said.
The PPA estimated that the contractor has collected only 18% of the contract price.
“Sufficient funds remain available to complete the project as planned, to give the riding public the best kind of services they deserve,” he said.
Separately, PPA awarded the expansion of Lamao Port in Zamboanga del Norte to the joint venture of MRBII Construction Corp. and Mancol Construction Corp.
The contractor will have 720 calendar days to complete the P435.01 million expansion of Lamao port. — Ashley Erika O. Jose