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PPA Terminates Contract for Zamboanga Port Passenger Terminal Project

Zamboanga city: The Philippine Ports Authority (PPA) has officially terminated its contract with MAC Builders, Inc. for the construction of the Zamboanga Port Passenger Terminal Building (PTB), citing significant delays in the project.

According to Philippines News Agency, PPA Assistant General Manager for Engineering James Gantalao explained that the decision followed numerous formal notices and warnings issued to the contractor. The termination was attributed to delays, “design misalignment with current needs,” and the contractor’s inability to meet the project timeline despite several extensions. Gantalao highlighted that the initial project vision from 2021 no longer aligns with the current operational requirements of the port.

Additional challenges contributing to the termination included inclement weather, location-specific issues, and evolving design considerations. Zamboanga Port is a key gateway in Mindanao, essential for both passenger and cargo traffic. It serves the Zamboanga Peninsula, Basilan, Sulu, Tawi-Tawi, and neighboring ASEAN countries. The port plays a vital role in regional trade, facilitating the movement of domestic travelers and international cargo, including sardines, marine products, coconut, rubber, and aquaculture goods.

The PTB project was designed to enhance the passenger experience with spacious, air-conditioned areas, comfortable seating, and adequate facilities. However, MAC Builders, Inc. has only achieved 56 percent of the physical work and has collected 18 percent of the total contract price. Under PPA policy, no downpayment or mobilization payments have been made, ensuring sufficient funds remain to complete the project as planned.

In a separate issue, the PPA is addressing concerns about the reselling of ship tickets, or “scalping,” in coordination with the Maritime Industry Authority (MARINA), the Philippine Coast Guard (PCG), and the Zamboanga City government. The PPA emphasized its commitment to respecting its jurisdictional boundaries, clarifying that it is not within its mandate to intervene in the sale of vessel tickets.