Ports body, DENR dispute Banago port ownership

BACOLOD CITY, Philippines — While the Philippine Ports Authority has appropriated close to P1 billion fund for the modernization program and expansion of the Banago Port in this city, it is bracing for the settlement of a dispute with the DENR over ownership of the port.

Representative Anthony Golez told The Freeman that while this modernization works would continue, there is a legal issue to be settled on who has jurisdiction of the operations of Banago port: The PPA or the DENR?

Golez called for a conference in the city last weekend to tackle the dispute, and present in that meeting were DENR Undersecretary Manuel Geroche, CENRO and PENRO heads, district manager Fernando Claveria of the PPA district office in the Visayas, and Negros Navigation officials.

On August 10, 1961, the Philippine government, through the DENR secretary, entered into a foreshore lease contract with Negros Navigation (NENACO) for a period of 25 years. Before the contract expired in 1986, NENACO renewed it on August 10, 1984 for a second 25-year term until August 9, 2009.

Since 1961, NENACO had introduced port works and improvement of facilities in the leased foreshore area, which it operated as a private port.

On August 9, 2009, after the second contract expired, the facilities were reverted to the government by operation of law.

PPA then asserted that, pursuant to Sections 30, 31 and 40 of Presidential Decree No. 857, it already owned the port facilities.

Geroche however countered: "The land in Banago port has been leased from the DENR, therefore it belongs to us when it expires.There is no automatic transfer. Because there is that provision also that PPA authority extends only to the port districts which are declared from time to time. That is what we want to settle."

The DENR official argued: "Facility and land are two different things. If we can agree that the facility and the land goes automatically to the PPA, then that settles the issue, but if we can't then we can have another way: Have it (Banago port) proclaimed by the president as a port district."

If there are conflicts of ownership between two government agencies, the last recourse is the Office of the President to settle it, said Geroche.

Golez said the PPA is invoking PD 857 while the DENR is invoking Commonwealth No. 141 to support their respective claims on ownership of the port. He said his congressional chief of staff will meet with the lawyers of DENR and PPA at the DENR Office in Manila today to settle the port ownership dispute.

Golez said the NENACO lease agreement expired in 2009, after which the PPA approached him to look for funds for the development of Banago port.

"Originally I proposed to construct a terminal, and then a berthing facility, and then expansion through reclamation," Golez said, adding that he worked hard in convincing Congress for the establishment of the first modern port in Bacolod.

Claveria showed to The Freeman the itemized funding for the proposed development plan of Banago port. He said that, for the short-term plan, P18.26 million was set aside for the repair and renovation of existing ferry terminal into a passenger terminal and PMO Building, P35 million for the repair of causeway and P200 million for the construction of a roll-on roll-off (RORO) facility.

For the long-term plan, P716 million was allotted for the reclamation, PMO Building and other facilities, including road network, drainage system, riprap/sheet pile, weighing scale and scale house, and rentable space, Claveria added.