ILOILO City – The City Legal Office (CLO) has formally initiated efforts to renegotiate the joint venture agreement (JVA) between the Iloilo City government and the private firm that manages the Iloilo Ferry Terminal.
City Legal Officer Edgardo Gil underscored the need to revisit the agreement due to pressing legal and financial concerns.
“Given the foregoing serious legal and financial concerns, we request that duly authorized representatives of DoubleDragon Properties Corporation and Iloilo-Guimaras Ferry Terminal Corp. meet and discuss with our Office at the soonest possible time, for the purpose of renegotiating the JVA’s terms and conditions,” the letter stated.
The CLO set five days from receipt of the letter for the ferry terminal operator to respond and engage in discussions.
Failure to comply may compel the city to pursue legal remedies, such as contract rescission or arbitration, to safeguard public interest and ensure compliance with the law.
Among the primary concerns raised by the CLO include disproportionate profit-sharing, non-compliance with reporting obligations, legal questions on developer’s involvement, and lack of proper asset valuation.
The city is allocated only 1% to 5% of terminal fees over 25 years, along with 1% from berthing, rental, and cargo handling fees.
This profit-sharing scheme is deemed inequitable and inconsistent with public interest, prompting calls for a reassessment, according to the CLO.
Section 8.2 of the JVA requires the submission of annual financial and operational reports to the city mayor.
According to Gil, the private firm has failed to fulfill this obligation, hindering transparency and accountability.
While the firm is authorized to manage the project, the Iloilo-Guimaras Ferry Terminal Corporation has also been involved in its execution.
This raises questions about the legal authority and validity of the latter’s participation.
Gil also stressed the lack of proper evaluation of the land and building assets contributed by both parties was conducted before the agreement.
This omission prevents the city from ensuring a fair profit-sharing arrangement.
Former Mayor Jed Patrick Mabilog defended the agreement, emphasizing the significant benefits the project has brought to the Parola area.
“The project revitalized the area and provided much-needed modern infrastructure, all without incurring any financial liabilities for the city,” Mabilog said.
He pointed out that the Iloilo Ferry Terminal has replaced outdated facilities, upgraded ferry operations, and resolved longstanding issues in the region.
While the CLO seeks to address unresolved concerns, the city aims to strike a more favorable agreement that safeguards public interest while maintaining the terminal’s contributions to Iloilo’s development./PN
