ILOILO City – Mayor Jerry Treñas has vowed to rescind the joint venture agreement (JVA) between the city government and the private company managing the Iloilo Ferry Terminal if renegotiations fail to yield fairer terms.
Treñas expressed full support for the City Council’s recommendation authorizing the City Legal Office to review the JVA concerning the Guimaras-Iloilo Parola Wharf.
“I fully support the renegotiation process, particularly in securing better financial terms for the City of Iloilo or considering rescission,” Treñas said.
The mayor confirmed receiving the City Council’s resolution, which grants the City Legal Office two months to renegotiate the agreement and submit a report on its findings and recommendations.
“If the renegotiation does not yield fairer and more favorable terms, I will not hesitate to rescind the contract,” Treñas stressed.
Revenue concerns
The City Council’s transportation committee, led by Councilor Sedfrey Cabaluna, raised concerns over the city’s minimal revenue share under the agreement.
Between 2018 and 2024, Iloilo City earned only P4.418 million from the terminal, averaging P631,000 annually.
In 2021 and 2022, the city received P389,561 and P₱535,591, respectively.
The current revenue-sharing model allocates just 1-5% of gross terminal revenues and 1 percent from other sources like berthing fees, cargo fees, and mall rentals.
The highest annual payment recorded was P535,591 in 2022, raising questions about whether the agreement adequately reflects the terminal’s income potential.
The JVA, signed during the term of former Mayor Jed Patrick Mabilog, has a 25-year term with an optional renewal for another 25 years at Double Dragon’s discretion.
The agreement also requires Double Dragon to submit annual operations and maintenance reports to the city mayor.
However, these reports have reportedly lacked transparency and public accessibility, adding to concerns about fairness and accountability.
Review and renegotiation
The City Council has tasked the City Legal Office with assessing the agreement’s compliance and determining whether it disadvantages the city.
If necessary, the council supports renegotiating or rescinding the JVA to secure a fairer revenue-sharing model.
The legal office’s previous review, submitted on May 16, 2023, raised concerns about the city’s profit share.
It recommended renegotiation, considering factors like inflation, the consumer price index, and the city’s best interests.
The review will also scrutinize the role of the unincorporated Iloilo-Guimaras Ferry Terminal Corp. (IGFTC), as agreements involving unincorporated entities may lack enforceability unless ratified after incorporation.
The council has mandated the City Legal Office to initiate renegotiation proceedings within 60 days and submit the results to the Sangguniang Panlungsod for further action.
Treñas expressed his commitment to ensuring a deal that prioritizes the financial interests of Iloilo City and its residents.
The Iloilo Ferry Terminal is a vital facility connecting Iloilo City to Guimaras, serving thousands of passengers daily.
The renegotiation aims to secure a more equitable revenue-sharing model and enhance the terminal’s operations for the benefit of the city./PN
