AFTER posting lower earnings last year, the Philippine Ports Authority (PPA) plans to cut funds it remits to the government so that it could have enough to bankroll its various big-ticket projects.

PPA general manager Oscar M. Sevilla said that remitting half of its earnings is “a lot.” “It should be reduced to 30 percent because we have to fund port-infrastructure projects,” Sevilla said.

Since the port agency earned 14- percent less in 2007 than in the previous year, Sevilla said the PPA should only give back P800 million to P1 billion to the National Treasury, instead of P1.15 billion, which is half of the P2.3 billion it earned in 2007.

If the PPA is allowed to reduce its government remittance, the additional funds it gets to keep will be used to pay for port projects linking the country’s islands, providing relief for shippers since these facilities would reduce logistical costs.

Sevilla added that he expects the finance department to disagree with his proposal since the latter’s goal is to balance the budget before President Arroyo’s term ends in 2010.

As a government-owned and-controlled entity, the PPA is required to give half of its earnings to the government. Since it keeps the other half of its profits, the agency does not depend on a government budget allocation.

Last year the PPA already asked President Arroyo to lower its government remittance for the next two years since it has already reduced wharfage collected from exporters. The body also had to bankroll several port-development projects, 10 of which are big-ticket items.

However, Malacañang had rejected its petition.

In an earlier report, the PPA said that out of the 35 ports identified in the port-development program promised by President Arroyo during her State of the Nation Address in 2006, 15 were already completed in 2007.

Some 17 projects are ongoing, two are in preliminary or detailed engineering stage, and one was postponed. According to estimates, it would cost the PPA about P300 million to complete these projects.

The ongoing projects include ports in Aroroy, Bulalacao, Cagayan de Oro, Calapan, Calbayog, Caramoan, Claveria, Dapitan, Davao, Dumaguete, El Nido, Ezperanza, Fort San Pedro, General Santos, Iloilo, Lamao, Lianga, Maripipi, Masao, Mulanay, Nasipit, Pagadian, Plaridel, Poctoy, San Pascual, San Ricardo, Sibunag, Surigao, Taytay, Tacloban and Zamboanga.

Last month the port body said its revenues from January to November were higher compared with the previous year owing to strong cargo volume handled at its more than a hundred ports. However, its gains were wiped out due to the strong peso and higher maintenance costs.

Agency plans to cut funds remitted to government

AFTER posting lower earnings last year, the Philippine Ports Authority (PPA) plans to cut funds it remits to the government so that it could have enough to bankroll its various big-ticket projects.

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