BY GEROME DALIPE IV
ILOILO City – The deal between the city government and a private firm to manage the Iloilo Ferry Terminal has come under scrutiny due to concerns about the city’s revenue share.
Between 2018 and 2024, the city earned only P4.418 million, averaging P631,000 annually, which raises doubts about the effectiveness of the revenue-sharing model.
In 2021 and 2022, the city’s shares were P389,561 and P535,591, suggesting the agreement may not reflect the terminal’s income potential.
Councilor Sedfrey Cabaluna, chair of the City Council’s transportation committee, has raised concerns that the Joint Venture Agreement (JVA) disproportionately benefits the private firm, providing the city with just 1-5 percent of gross terminal revenues and 1 percent from other sources like berthing, cargo fees, and mall rentals.
Despite the terminal’s significant operations, the City Treasurer’s Office recorded only P535,591 as the highest annual payment in 2022, which seems inconsistent with the terminal’s economic activity.
The agreement, which was initiated during former mayor Jed Patrick Mabilog’s term, also requires the private firm to submit annual operations and maintenance reports to the city mayor.
However, there is no evidence that these reports are comprehensive or accessible. Moreover, the agreement’s 25-year term, with an optional 25-year renewal at the private firm’s discretion, could disadvantage the city in the long run, as there is no guarantee that the city’s revenue share will improve.
The committee has recommended that the City Legal Office review the JVA’s provisions and the private firm’s compliance.
If the deal is deemed unfair, the committee noted the city may consider renegotiating or terminating the contract.
Additionally, the City Legal Office is urged to examine the inclusion of the unincorporated Iloilo-Guimaras Ferry Terminal Corp. (IGFTC) in the JVA, as contracts entered into by an unincorporated entity are generally unenforceable unless ratified post-incorporation./PN
