1 month ago
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ILOILO CITY — Former Iloilo City mayor Jed Patrick Mabilog has defended the 2012 joint venture agreement (JVA) for the Iloilo-Guimaras Ferry Terminal Services at Parola Wharf, arguing that the project is beneficial to the city and aligned with sound economic principles.
Mabilog's statement comes after the current city administration, under Mayor Jerry Treñas, announced plans to renegotiate the JVA, citing provisions that are allegedly disadvantageous to Iloilo City.
"To argue that this project was disadvantageous ignores fundamental economic principles and logic," Mabilog said in a statement obtained by The Manila Times on Monday.
The JVA, executed in October 2012, was signed by Mabilog on behalf of the city government and Ferdinand Sia, who represented two corporations: Double Dragon Properties Corp. (DDPC) and the terminal corporation at Parola.
Mabilog maintained that the JVA was a strategic investment at a time when Iloilo City was not yet considered a booming economic hub.
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"In 2012, Iloilo City was far from the thriving economic hub it is today. There was little investment interest in the city, making it a significant risk for any investor to commit P126 million and be locked into a 25-year agreement," he said.
He said that DDPC took on this risk when there was no guarantee of success, a reality that he argued critics failed to acknowledge.
He pointed out that the P126 million investment has now surged to at least P250 million, citing the rapid increase in property value in Iloilo City.
"If the city were to rebuild that terminal now, the cost would likely exceed P250 million. More importantly, at the end of the joint venture, the terminal becomes the property of the city — without any debt or interest burden," he said.
Mabilog dismissed claims that the JVA was disadvantageous, urging the Treñas administration to engage directly with DDPC if it seeks a renegotiation instead of making "baseless and illogical allegations."
However, a review committee composed of city officials evaluated the proposal and deemed it advantageous for Iloilo City.
Under the JVA, Iloilo City is entitled to 1 percent to 5 percent of gross terminal revenues, 1 percent from other revenue sources, such as berthing and mall rentals, and ownership of the entire terminal after 25 years if the contract is not renewed.
The project included not just a ferry terminal but also a 1.3-hectare commercial complex with a grocery store, pharmacy, restaurants, a fuel station, and other retail outlets.
The terminal serves approximately 3,500 daily passengers traveling between Iloilo and Guimaras.
