By Rjay Zuriaga Castor
DoubleDragon Properties Corp. (DDPC), the developer of the Iloilo-Guimaras Parola Wharf, has refused to accept a formal request from the Iloilo City government to renegotiate the terminal’s 2012 joint venture agreement (JVA).
The Iloilo City Legal Office (CLO) initially attempted to deliver the letter to DDPC President Ferdinand Sia at the company’s Iloilo office on Feb. 10, but the office declined to receive it.
As a result, the CLO sent the letter via mail to DDPC’s main office in Pasay City on the same day.
The letter states that upon receipt, DDPC has five calendar days to send representatives to meet with the city government for renegotiation.
If DDPC fails to respond, the CLO warned that the city would be forced to take legal action, including contract rescission or arbitration.
Councilor Sedfrey Cabaluna, chairman of the Committee on Transportation, previously revealed that DDPC officials had refused to attend hearings on the agreement. He noted that attempts to engage the company were often redirected to its central office, making discussions difficult.
In March 2023, the City Council recommended that the CLO review the JVA’s provisions and assess compliance to determine whether renegotiation or contract rescission was necessary.
Following a thorough review, CLO lawyer Edgardo Gil cited several key issues requiring urgent renegotiation.
One of the primary concerns is the alleged unfair profit-sharing structure. Despite owning the land, the city government receives only 1% to 5% of terminal fees over 25 years, 1% of berthing and rental fees, and 1% of cargo handling fees.
Gil stressed that this arrangement raises serious concerns about fairness and compliance with statutes protecting public interest.
Needless to state, a reassessment of the profit allocation is imperative to ensure that the City receives its just and equitable share in the project,” Gil said.
Another issue is the failure to submit financial and operational reports.
The JVA requires DDPC to provide annual reports to the city mayor, but city records show that no such reports have ever been submitted.
Gil said this lack of compliance deprives the city of transparency and accountability in monitoring its interests in the venture.
The CLO also questioned the legal personality of the developer.
The original JVA granted only DDPC the authority to establish and operate the ferry terminal. However, the Iloilo-Guimaras Ferry Terminal Corp. has been actively managing the project, raising legal concerns over its role and profit distribution.
“This raises serious legal questions about the validity of the latter corporation’s participation in the said venture and profits which could have gone to the city and which must urgently be resolved,” Gil emphasized.
Additionally, the JVA lacks a proper determination of asset values contributed by both parties before its execution.
Without an accurate valuation, the city government cannot properly assess whether it is receiving its rightful share from the venture, Gil said.
The city government awaits DDPC’s response as the dispute over the ferry terminal agreement escalates.
