𝗜𝗟𝗢𝗜𝗟𝗢 𝗖𝗜𝗧𝗬 — The Iloilo City government has announced plans to renegotiate the joint venture agreement (JVA) for the Iloilo-Guimaras Ferry Terminal Services at Parola Wharf, following concerns over provisions that are seen as disadvantageous to the city. This move comes 12 years after the original agreement was signed by then-mayor Jed Patrick Mabilog and Ferdinand Sia, representing Double Dragon Properties Corp. (DDPC) and the terminal corporation.
In an interview with Bombo Radyo, Atty. Dave Garcia, vice chairman of the Iloilo City Public-Private Partnership (PPP) Committee, highlighted the need for renegotiation, citing the city’s share of the revenue as a major issue.
The Iloilo City Council has approved a resolution granting the City Legal Office (CLO) the authority to begin renegotiations with DDPC. Mayor Jerry Treñas expressed his full support for this initiative, emphasizing the importance of securing better financial terms for the city.
In March 2023, the City Council tasked the CLO with reviewing the JVA and determining whether renegotiation or rescission was necessary. After conducting a review, the CLO recommended renegotiating the financial terms of the agreement, pointing out that the city’s share of the profits was unfair, given current economic conditions and inflation.
One of the main concerns raised was the city’s low revenue share from the terminal, which starts at just 1% of the gross terminal income (around P200,868 annually) and only increases to 5% over the course of 25 years. The CLO deemed this arrangement insufficient, especially considering that the city owns the 10,687-square-meter lot on which the terminal is located.
The value of the city-owned land has significantly appreciated, rising from P51.65 million in 2012 to P183.35 million in 2024. Meanwhile, the commercial building built by DDPC is valued at just P105.66 million, prompting concerns of undervaluation.
The CLO also flagged issues related to transparency in implementing the JVA. It noted that DDPC’s proposal did not originally include the construction of commercial buildings and that a master development plan, which was a requirement under the agreement, was never created. Furthermore, the CLO pointed out that DDPC had failed to submit the annual reports on project operations, as stipulated in the contract.
Former Mayor Jed Patrick Mabilog, who signed the original agreement in 2012, defended the JVA, arguing that it was a strategic investment at a time when Iloilo City was not yet an economic powerhouse. Mabilog explained that DDPC took on significant risk with an investment of P126 million, which has now appreciated to at least P250 million due to the city’s rapid growth.
Mabilog dismissed the current administration’s criticism of the agreement, urging Mayor Treñas and his team to directly engage with DDPC for renegotiation rather than making “baseless and illogical” claims.
Under the terms of the JVA, Iloilo City is entitled to 1% to 5% of gross terminal revenues, 1% from other revenue sources such as berthing and mall rentals, and ownership of the terminal after 25 years if the agreement is not renewed.
The project not only includes the ferry terminal but also a 1.3-hectare commercial complex that houses a grocery store, pharmacy, restaurants, a fuel station, and other retail outlets. The terminal serves around 3,500 daily passengers traveling between Iloilo and Guimaras.
