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DORIS
Magsaysay Ho, the operator of one of the country’s
largest shipping companies, is willing to help
Philippine Ports Authority (PPA) to get the necessary
funding to privatize the
Manila North Harbor
using other strategies done the current bidding
procedure.
Magsaysay in her recent meeting with PPA general manager
Oscar M. Sevilla on November 13 broached the idea and
said that there are a lot of funding institutions that
would help the state firm to source its funds to pursue
the privatization even without the direct participation
of the private sector.
“You can
offer it later to the public to make it privately-run,”
Magsaysay told Sevilla, adding that the government can
tap the necessary funding from the state-owned
Development Bank of the Philippines.
“We
commit to help you PPA in the best way we can, to get
efficiency in the port system,” she said.
Magsaysay’s offer stems from the unsolicited proposal of
the Philippine Inter-Island Shipping Association (PISA)
to PPA by copying the strategy of Singapore of creating
another state firm that will handle the development of
the port.
The new
firm could get seed money from agencies such as the
Japan Bank for International Cooperation and Asian
Development Bank, which would be used to bankroll the
development of the terminal.
The
private sector can come in as the new firm can go
public, or be listed at the Philippine Stock Exchange,
or through equity.
Magsaysay’s group, which operates Lorenzo Shipping Corp.
and National Marine Corp., have operations at the
North Harbor.
Its operations, some of it officials said, is limited
due to the inefficiencies of the terminal such as to the
lack of equipment, the necessary infrastructure, and the
proper draft for the vessel.
Sevilla,
on the other hand, said that they are still studying the
proposal, but later admitted that they cannot do any
move on the privatization since there is an ongoing
court case.
“We will
study it first. Of course we have to consider if we can
raise the funds,” he said.
Harbour
Centre Port Terminals Inc., the lone bidder for the
privatization, with its joint venture partner Metro
Pacific Investments Corp., filed a case in August before
the Manila Regional Trial Court after the PPA board
changed the bidding rules in the middle of the
procedure.
The PPA
board, in its meeting late July this year, declared
there should be at least two bidding entities. The
declaration was issued shortly after it was evident
Harbour Centre is the only firm that became eligible to
bid.
The PPA
board said the participation of another bidder is
required before the entire process can continue.
The
state firm had to halt the bidding procedure
indefinitely, or it can be cited for contempt, until the
court hands down its decision with finality.
The case
could go all the way up to the Supreme Court, according
to people in Harbour Centre. |
