GEDA opposes firm’s bid for drydock project

The Commonwealth Ports Authority may reject the sole proposal submitted for the Saipan drydock project, with the Guam Economic Development Authority opposing the bid.

CPA executive director Carlos Salas reported yesterday that GEDA had raised some concerns regarding the proposal submitted by Guam Industrial Services Inc., which operates Guam Shipyard.

Salas refused to elaborate on GEDA’s concerns, saying only that they primarily involved a certain lease provision. He explained that GEDA had asked CPA to keep the issue confidential.

“We are going to validate GEDA’s concerns. If we determine that it’s really a problem, CPA will reject the proposal and re-issue a request for proposals,” Salas said.

Guam Industrial Services Inc. is the only company that submitted a proposal for the drydock project, which includes the construction of a small ship repair and manufacturing facility at the North Seaplane Ramp area at the Port of Saipan.

Currently, Guam Shipyard is the only drydock facility in the region. There is an existing drydock area for small vessels at the North Seaplane Ramp in Lower Base. But this facility is poorly equipped and the method used is crude and may be unsafe.

The Saipan drydock project is expected to benefit owners of small vessels, which have difficulty traveling far due to their limited cruising range capability.

Based on its proposal, Guam Industrial Services seeks to design, build, and operate a floating drydock capable of providing repair and maintenance for vessels up to 250 feet long.

“We at Guam Industrial Services is enthusiastic about developing a small shipyard and manufacturing facility at the Port of Saipan by investing the capital, marine assets, and ship repair and manufacturing know how,” the company said. “We believe we are the best capable and qualified company to undertake this project.”

Guam Shipyard has been providing repair, maintenance, overhaul and drydocking services mainly to military vessels since 1997.

In the request for proposals issued last year, CPA said it was looking at granting leases for up to 40 years.

“It must be understood that [CPA] will neither finance this development, nor guarantee financing for any proposer. Thus it is expected that all proposals shall identify and include financing sources and make affirmative statements of their capabilities, qualifications, and intent to complete the project. It is the authority’s intent to review, evaluate, and select the best proposal,” a portion of the RFP read.

The proposer will also be responsible for securing required federal and local permits since the project will involve land with the shoreline areas and the Tanapag lagoon.

CPA said that while it would cooperate and assist in the acquisition of the necessary permits, all the proposer would have to qualify for, secure, and pay for the permits.