By MYLA IGLESIAS
[ Malaya.com.ph ] December 4, 2008
Metro Pacific Investments Corp. (MPIC), is budgeting P6 billion to modernize the Manila North Harbor, the country’s largest and busiest port.
The amount is twice the P3 billion estimate by the Philippine Ports Authority.
Manuel V. Pangilinan, MPIC chairman, said he is optimistic that they could finalize the concession agreement with the government this month after the Manila regional trial court (RTC) dismissed the case filed by the Philippine Port Authority (PPA), removing the legal impediment for the privatization of the port.
"We are finalizing the concession agreement... hopefully by December we could finalize the terms on our investment in North harbor." Pangilinan told reporters in press briefing in Hong Kong.
The joint venture of MPIC and Reghis Romero’s Harbour Center Port Terminal Inc., was the sole bidder for the Manila North Harbor’s 25-year concession in the bidding conducted last year.
Pangilinan said P6 billion will be needed to expand and dredge the port for the next five years.
Pangilinan further said that their "joint venture in the North harbor is 50-50 across the board".
North Harbor recorded total revenues of about P343 million last year, handling more than 400,000 twenty-foot equivalent units.
The winning bidder will operate the port for the next 25 years with provisions for renewal for 25 years in order to provide it with reasonable time to recover its investments.
The North Harbor’s terminal 1 will service roll-on roll-off container and passenger vessels, while terminal 2 will service container and passenger vessels. Terminal 3 is allotted for conventional, noncontainerized, bulk vessels and passenger vessels.
In the first nine months of the year, MPIC reported a core net income of P143.3 million as against a net loss of P170.6 million in the same period last year. But including non-recurring gains, MPIC’s net income amounted to P660 million compared with a restated net loss of P218.4 million.
