PPA allots P2.96B for rehab of major ports

The Philippine Ports Authority (PPA) has earmarked P2.96 billion or 58 percent of its total budget for capital expenditures for this year to develop, rehabilitate and improve major ports nationwide.

This was revealed yesterday by PPA general manager Alfonso Cusi who said the move was in line with the agency’s thrust of upgrading port services to international standards.

"The PPA has packaged a number of foreign-assisted and locally funded priority projects, particularly in Mindanao which is the focus of a massive infrastructure development program of the Arroyo administration," Cusi said.

The PPA allocated P1.72 billion representing 58 percent of its total budget for new locally funded projects for this year such as reclamation and construction of breakwaters and perimeter fences.

An additional P1.13 billion would be invested in ongoing projects such as concreting of open storage areas, improvement of lighting systems and port expansions.

A total of P80 million was programmed for the conduct of feasibility and detailed engineering projects.

The PPA will also embark on a "comprehensive privatized dredging program" to the tune of P250 million, targeting some two million cubic meters of silt along fairways, channels, basin slipways, piers and ports nationwide. It was estimated that 70 percent of this activities would be done in Manila.

To ensure the safe and smooth flow of navigation along fairways and berthing areas, the PPA will also intensify salvaging operations to remove derelicts of sunken vessels in the ports of Iloilo, Zamboanga, Pagadian, Puerto Princesa, Balanacan in Marinduque province and Mariveles in Zambales.

Repair and maintenance projects for various port facilities for this year were estimated to cost an additional P361 million.

To bankroll PPA’s operational requirements, the agency targets P5.327 billion in total revenue collections from port operations and other sources of non-traditional income.

"We will continue to impose a 100-percent collection efficiency ratio for this year and 60 percent for prior years’ receivables to support intensified revenue generation efforts," the PPA said. "This has to be done in order to cope with the mounting operational expenses that include faithful commitment to meet maturing foreign debt obligations, as well as increased operating expenses attendant to the ongoing PPA Restructuring Program."

Cusi also said the PPA will continue to adopt and implement mandated and self-imposed fiscal restrains to keep operating costs at "acceptable and manageable levels."

As part of the PPA’s social responsibility, Cusi said they intend to uplift the quality of life of the poor and marginalized people residing in communities surrounding the ports through a package of social amelioration projects.