PPA cancels Zamboanga port terminal contract with MAC Builders

The Philippine Ports Authority (PPA) has canceled the contract with MAC Builders, Inc. for the construction of a passenger terminal building at the Port of Zamboanga due to design problems and delays.

PPA Assistant General Manager for Engineering James J. Gantalao stated that the original design from 2021 no longer aligns with current operational needs.

Gantalao also mentioned location-specific challenges and design considerations as contributing factors to the termination.

The COVID-19 pandemic led to delays and made initial cost estimates for building materials outdated.

Despite repeated warnings and notices from the PPA to speed up the work, the contractor proceeded at a very slow pace.

MAC Builders, Inc. has reportedly collected only 18% of the contract price.

The PPA assured that ample funds are available to complete the project and provide the public with quality services.

In a separate development, the PPA awarded the expansion of Lamao Port in Zamboanga del Norte to a joint venture of MRBII Construction Corp. and Mancol Construction Corp.