By Rjay Zuriaga Castor
The Iloilo City Council is considering renegotiating the 2012 Joint Venture Agreement (JVA) for the Iloilo-Guimaras Ferry Terminal Services at Parola Wharf, calling the terms “disadvantageous” to the city government.
Councilor Sedfrey Cabaluna, who initiated the JVA review in 2022, said the City Legal Office (CLO) recommended renegotiating or rescinding the contract with Double Dragon Properties Corporation (DDPC).
The JVA, signed in October 2012, was executed by then-Mayor Jed Patrick Mabilog for the city government and Ferdinand J. Sia on behalf of DDPC and the terminal corporation at Parola.
“The direction is renegotiating because if we rescind it, there will be a lot of complications considering that the terminal is already there. The effect is adversarial,” Cabaluna said in an interview.
If renegotiation fails, Cabaluna indicated that the city may pursue legal action to rescind the contract under its non-compliance and termination clauses.
The CLO’s findings, obtained by the Daily Guardian, emphasized that DDPC’s original proposal only involved the development of a modern port terminal at Parola Wharf. It did not mention constructing commercial structures, such as the CityMall built on the premises.
The CLO also noted that the JVA required a Master Development Plan for the project, but no preliminary or final version of such a plan has been found.
Additionally, there was no proper determination of each party’s asset or resource contributions, which should have served as the basis for profit-sharing.
Under the JVA, the city’s share of gross terminal revenue starts at 1 percent, or PHP 200,868 annually, and gradually increases to 5 percent over 25 years.
The CLO criticized this as “grossly inadequate,” given the city’s ownership of the 10,687-square-meter property.
At the start of the JVA, the lot’s market value was PHP 51,654,400. In 2024, its value rose to PHP 183,353,500.
Meanwhile, the commercial building constructed by DDPC on the property has a market value of only PHP 105,659,270, raising concerns about undervaluation and resource contributions.
“From the start, it is glaring that there was no determination of the asset or resource value contribution of each of the partners to the joint venture, which should have been the basis for profit-sharing,” the CLO stated.
The JVA also mandates that DDPC submit annual reports on the terminal’s operations and maintenance, but City Mayor Jerry Treñas confirmed that his office has received no such reports.
Despite these issues, Cabaluna said no timeline has been set for further action, as next steps depend on the mayor’s priorities.
The councilor remains hopeful that DDPC will respond to the city government’s call for renegotiation.
“I think they know that we’re serious because all agencies and offices of the government have really called on them to renegotiate or else move for the rescinding of the contract. So I hope they will now come to the table,” he added.
