Subic New Container Terminal 2 (second semester 2011)

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The Subic Bay New Container Terminal-2 (NCT-2) was a container processing terminal located at the Subic Bay seaport in Subic Bay, Philippines. The terminal was constructed by the state-owned Subic Bay Metropolitan Authority (SBMA) at a cost of US$80 million, with help from a US$ 60 million loan from the Japan Bank for International Cooperation. In 2010 the capacity of NCT-2 was 300,000 twenty-equivalent units (TEUs) annually, expandable to 600,000 TEUs. In April 2011, SBMA awarded a 25-year lease contract to operate the terminal to Subic Bay International Container Terminal Company (SBITC), which was a 100% subsidiary of ICTSI (Philippines). SBITC also operated New Container Terminal-1 at Subic Bay seaport since 2008. SBMA selected SBITC via a competitive tender. The bidding criteria were not publicly available. The tender was successful after two unsuccessful rounds of biddings. SBMA Special Bids and Award Committee (SBAC) initially bid out NCT-2 in 2009. However, while three entities purchased the bidding document, no bids were submitted on the scheduled submission date, thus the bidding was declared a failure. In 2010, a rebidding of NCT-2 was conducted, using the same procedure as in 2009, but with a revised TOR. Although the three entities again purchased the bidding document, but only the International Container Terminal Services Inc. (ICTSI) submitted eligibility/pre-qualification documents and bid. The contract award was put on hold until April 2011 due to management changes in SBMA. In August 2011, the SBITC signed a 25-year lease contract for NCT-2 with the SBMA. SBITC was expected to take over port operations in the coming month or so. SBITC committed to bringing in at least 100,000 additional TEUs annually to the terminal. Annual lease payments to the government were expected to cover the SBMA's $60 million debt payments to JBIC. There was no further information on lease payments. There was no publicly available information on requirements of capital expenditures by SBITC either. Update title - drop (second semester) Payments to government, in the form of annual lease fees, should cover the US$ 60 million loan from Japan Bank for International Cooperation made to the SBMA.