Long before President Rodrigo Duterte even considered running for the highest office in the land, his native Davao City has always been considered an ideal location for the tourism and food industries. Its pristine land and beachfronts, as well as its first-class hotels, have attracted tourists for several decades. Fresh fish and the famous durian are associated with the city.
There was a time when Davao City was a dangerous place because of the random killings and kidnappings perpetuated by local communist rebels. Fortunately, Duterte put a stop to all that when he was the city mayor. Under his watch, Davao City became a safe, clean and efficient city worthy of emulation by other local government units. Today, Davao City remains a popular destination for many, as confirmed by the numerous daily flights to this hub.
Davao City is the heart of Mindanao. It has an ideal port, and it is very proximate to southern trading posts in Indonesia, Brunei, Malaysia, and even East Timor. Its direct access to the Pacific Ocean and its proximity to Australia add to its strategic importance. The current tension in the West Philippine Sea brought about by Communist China’s illegal territorial claims in the area also underscores the value of Davao City as an alternate local and international port area.
Unfortunately, its existing port facilities have not caught up with the demands of the current maritime industry.
Seeing the potential of Davao City in this light, then-Mayor Duterte brought up the idea of developing his city into a strategic maritime hub, complete with state-of-the-art facilities far more advanced than in existing ports in the country. He wanted a Bonifacio Global City and a Subic Bay free port combined in Davao City. The city council shared Duterte’s aspiration.
Last year, Mega Harbour Development Corp., a firm headed by businessman Reghis Romero II, took interest in Duterte’s idea and submitted its proposal to undertake a P39-billion Davao Coastline and Port Development Project. Mega Harbour’s proposal was subjected to a Swiss challenge. Under this system, Mega Harbour, as the original proponent, is allowed to match any challenger’s bid.
Mega Harbour’s plan covers 200 hectares, from the existing Santa Ana Wharf up to the Bucana area where the city’s river flows out to the scenic Davao Gulf. More specifically, four islands off the coast of Davao City will be reclaimed.
The first island will be developed as a modern port capable of accommodating any sea vessel. Its berthing length of approximately 2.5 kilometers will make it the longest in the Davao region. A mixed-use development plan is envisioned for the second and third islands. This plan will include a commercial-use component. These three islands will be inter-connected and will have a common access to the mainland.
About five hectares in either the second or third island will be given to the city government for use as office buildings.
The fourth island will be a residential community. Being residential in character, it will not be connected to the other islands, and it will have its own access to the mainland.
As in similar projects, Mega Harbour will secure the necessary permits from the city government, and from government agencies including the Philippine Reclamation Authority, the National Economic Development Authority, and the Department of Environment and Natural Resources.
Mega Harbour expects the project to generate employment opportunities in Davao City, especially for the residents in the affected areas near the coastline. The company also believes that the project will create a new green and urban cityscape, and will make Davao City and nearby areas more commercially viable. Mega Harbour says the project will be completed in three years, and with no cost to the government.
Upon the insistence of then-Mayor Duterte, Mega Harbour agreed to provide sufficient relocation for affected families. Towards this end, Mega Harbour will build tenements for the affected families, which will be located near the reclamation areas, particularly in Agdao and in Ecoland.
Davao City, of course, will have its share of obligations under the proposed agreement. Once the new port is completed, and in order to avail of tax incentives, Davao City will seek the approval of the Philippine Economic Zone Authority to convert the port into a special economic zone, similar to the ones operating in Subic Bay and in Cagayan.
On April 12, 2015, the city council approved the project. Weeks later, on June 21, Mayor Duterte and Mega Harbour signed the pertinent Joint Venture Agreement.
In his presidential campaign earlier this year, Duterte promised the electorate that well-intentioned projects will be undertaken towards the economic development of Mindanao. The Davao Coastline and Port Development Project is one of Duterte’s steps towards keeping his campaign promise.
Analysts believe that the rest of the country will likewise benefit once this port project is completed. In that event, the crowded ports in Manila Bay will be decongested because consumer goods intended for Mindanao need not be coursed through Manila’s piers anymore. The same may be said for Mindanao products like fruits and fish meant for the export market. Less travel time means less overhead expenses, and in a robust market economy, this inevitably translates to lower prices of goods and prime commodities.
Davao City residents predict that the new economic landscape that will ensue once the port project is completed will create an economic boom in the region. Traders will put up factories and offices. Businessmen will open stores, restaurants, and other commercial establishments. The economic boom will reduce unemployment and address the poverty situation in the area.
Duterte’s Davao City port project, the first to be implemented under his administration, is an indication that the new president means what he says, and will deliver on his campaign promises. If Duterte keeps up this pace, then the Philippines may well be on its way to economic recovery, which should be welcome news during these optimistic post-Aquino times.