The Philippine Ports Authority (PPA) has finally terminated on September 4, 2025, its contract for the Zamboanga Port Passenger Terminal Building (PTB) project, citing several issues on the part of the contractor, including prolonged delays, a design misaligned with current needs, and excessive time extensions during implementation.
The PPA statement did not identify the project contractor though. However, the government-owned agency quoted a privilege speech by Senator Raffy Tulfo, wherein the senator mentioned MAC Builders Inc. as the project contractor.
In its statement, PPA Assistant General Manager for Engineering (AGME) Engr. James Gantalao defended the government agency’s decision in terminating the contract.
First, Gantalao said the decision was made in response to the matter raised by concerned individuals requesting for transparency and updates in Zamboanga port project through social media posts and inquiries.
“Unfortunately, we had to terminate the contract because what we envisioned back in 2021 when the project was started no longer met current operational requirements,” Gantalao explained.
He also cited another reason blaming the 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.
Gantalao further explained that the completion of the Zamboanga Port project was unavoidably delayed due to the COVID-19 pandemic, which caused substantial increases in the prices of construction materials and difficulties in mobilizing the required manpower. 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.
The Zamboanga Port is a major hub for passenger and cargo traffic, serving the Zamboanga Peninsula, Basilan, Sulu, and Tawi-Tawi, as well as neighboring ASEAN countries. The port facilitates the movement of both domestic travelers and international cargo, including sardines, marine products, coconut, rubber, and aquaculture goods, making its modernization a critical priority for regional trade and economic growth. The Passenger Terminal Building was originally designed to accommodate 3,500 passengers at any given time, making it one of the largest and most modern terminal buildings in Mindanao.
As per PPA AGME Gantalao, the original goal since 2021 has always been to give passengers a terminal experience with spacious areas while waiting for their voyages, air-conditioned, comfortable seating and proper facilities.
“As a matter of policy, the PPA does not pay any downpayment nor mobilization payments and has not released any advance payments to the contractor. To date, out of the reported 56% physical accomplishment, the contractor has only collected 18% of the total contract price. This ensures the public that sufficient funds will remain available to complete the project as planned, to give the riding public the best kind of services they deserve”, emphasized Gantalao when asked about the funds allocated for the project.
As to the issue of ticket scalping raised by Senator Raffy Tulfo during his privilege speech, the PPA remains committed to respecting the boundaries of its authority since it is not within its mandate to intervene with the selling of vessel tickets. Thus, the PPA continues to collaborate with the necessary government agencies like MARINA, PCG, and the LGU of Zamboanga City to advocate for the necessary changes that require collaborative efforts for the general public.
In an earlier statement, PPA said that despite the terminal project delays its cargo operations continued to improve under Globalport Zamboanga Terminal Inc. (GZTI), which has invested in modern equipment and facilitated new trade links, such as the regular calls of Regional Container Lines (RCL) connecting Zamboanga to Malaysia and Singapore. The PHP2.5 billion provided under the Port Terminal Management Contract with GZTI is the minimum concession fee to be paid by GZTI to PPA under the 15-year term of GZTI’s concession contract.
