Camarines Norte award marks first deal for offshore wind port

THE first contract to redevelop a port dedicated to servicing offshore wind farms has been awarded, with Mercedes, Camarines Norte set for a P2.27-billion  overhaul, the Philippine Ports Authority (PPA) said.

The PPA said it awarded the contract to the joint venture of Khan Kon Chi Construction and Development Corp. and SB Construction Corp. The contract covers the first phase of the redevelopment project, Energy Undersecretary Giovanni Carlo J. Bacordo told BusinessWorld.

The auction was conducted by the PPA earlier this month.

Khan Kon Chi Construction is a Davao-based engineering and construction firm while SBS Construction is a general engineering contractor.

The second phase of the redevelopment is scheduled for bidding in the second or third quarter this year, putting Mercedes in position to become the first port capable of servicing the offshore wind industry, Mr. Bacordo said.

“Mercedes is the most advanced of the three identified ports and is fully funded by the PPA,” he said.

The PPA also designated Sta. Clara port in Batangas for redevelopment to service offshore wind farms.

Mr. Bacordo said Sta. Clara port is being structured as public-private partnership project due to its scale and cost.

“A feasibility study is currently being prepared, with technical support, and the port is envisioned primarily as a marshalling port with future manufacturing potential,” he said.

He said redeveloping the port may cost about P3.1 billion.

The Philippines is hoping to generate output from offshore wind by 2028 as it pushes to diversify the national power mix and reduce dependence on fossil fuels. — Sheldeen Joy Talavera