To shore up revenue, Mormugao port to outsource school, hospital at Vasco | Goa News

Panaji: Staring at a long-term financial abyss, Mormugao Port Authority (MPA) has decided to try and shore up its revenue streams by monetising its prime assets. The port authorities have decided to aggressively pursue the Public Private Partnership (PPP) route, offering 30-year-long term leases to interested stakeholders. In this pursuit, everything from the Deepvihar primary school to MPA hospital are up for grabs.
Ever since the closure of Goa’s iron ore mining industry, Mormugao port has been under severe financial stress. Despite being classified as a major port, MPA has seen a steady decline in cargo. The Covid-19 pandemic, closure of iron ore mining, curbs imposed on coal transportation and the suspension of international cruise operations has hurt MPA significantly, port officials said.
“The idea is to outsource existing premises and create new facilities through the PPP mode at the port of Mormugao,” an official said.
MPA has identified 10 assets in terms of office space and vacant land, which can be monetised through 30-year concession leases. The port authorities feel that the old administrative building at harbour and the old hospital at Baina are prime locations for a water-facing resort. The existing 100-bed hospital at Sada is being offered to a private firm to setup a hospital and a medical college.
Officials have also identified six plots of under-utilised land in and around the port town, which could be used to setup a freight container complex or a commercial complex.
MPA has also moved to appoint a transaction adviser and financial consultant who can guide the port through the outsourcing process. The Union ministry of shipping and ports has 20 empanelled transaction advisors who have been asked to provide detailed proposals for consultancy services.
“The consultants will prepare a Techno-Economic Feasibility Report and the tender documents so that the PPP partner can be selected. The consultants will then help draft the concession agreement and guide the port till signing of the concession agreement,” a senior port official said.
MPA has seven cargo-handling berths, two of which are dedicated coal berths and one dedicated iron ore berth. MPA gave JSW control over berth number 6, while berth 7 is with Adani Mormugao Port Terminal Pvt Ltd (AMPTPL).
The port has already set in motion plans to redevelop berth 9, 10, 11 and three barge jetties through the public-private-partnership route. While redevelopment of berth 9 and three barge jetties is expected to cost Rs 700-1,000 crore, the project to handover maintenance, operation of berths 10 and 11 is valued at Rs 100-200 crore.