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A Country Paper A Country Paper presented by the Philippines presented by the Philippines through the Philippine Ports Authority through the Philippine Ports Authority during the 36 during the 36 th th APA Meeting APA Meeting Siem Reap, Cambodia Siem Reap, Cambodia 8-10 December 2010 8-10 December 2010 Port Development Port Development Through Through Public-Private Sector Public-Private Sector Partnership Partnership

A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

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Page 1: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

A Country PaperA Country Paper presented by the Philippines presented by the Philippines

through the Philippine Ports Authoritythrough the Philippine Ports Authorityduring the 36during the 36thth APA Meeting APA Meeting

Siem Reap, Cambodia Siem Reap, Cambodia 8-10 December 20108-10 December 2010

Port Development Port Development ThroughThrough

Public-Private Sector PartnershipPublic-Private Sector Partnership

Page 2: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Port Development Through Port Development Through Public-Private Sector PartnershipPublic-Private Sector Partnership

I.I. INTRODUCTIONINTRODUCTION

II.II. DEVELOPMENT NEEDS OF PORTSDEVELOPMENT NEEDS OF PORTS

III.III. PPA PRIVATIZATION FRAMEWORKPPA PRIVATIZATION FRAMEWORK

IV.IV. PPA PRIVATIZATION VENTURESPPA PRIVATIZATION VENTURES

V.V. INTROSPECTION INTROSPECTION

I.I. INTRODUCTIONINTRODUCTION

II.II. DEVELOPMENT NEEDS OF PORTSDEVELOPMENT NEEDS OF PORTS

III.III. PPA PRIVATIZATION FRAMEWORKPPA PRIVATIZATION FRAMEWORK

IV.IV. PPA PRIVATIZATION VENTURESPPA PRIVATIZATION VENTURES

V.V. INTROSPECTION INTROSPECTION

Page 3: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Port Development Through Public-Private Sector Partnership

INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION

Page 4: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Introduction

Manila Forum onManila Forum onPublic-Private Sector PartnershipPublic-Private Sector Partnership

• Signaled the Philippine Government’s call Signaled the Philippine Government’s call for Public-Private Sector Partnership (PPP) for Public-Private Sector Partnership (PPP)

• Attended by key officials/representatives Attended by key officials/representatives of business and financial institutions of business and financial institutions

• Considered PPP as tool for delivering Considered PPP as tool for delivering urgent projects in critical development areasurgent projects in critical development areas

• Reinforced the government’s confidence Reinforced the government’s confidence on economic growth and self-reliance on economic growth and self-reliance

• Signaled the Philippine Government’s call Signaled the Philippine Government’s call for Public-Private Sector Partnership (PPP) for Public-Private Sector Partnership (PPP)

• Attended by key officials/representatives Attended by key officials/representatives of business and financial institutions of business and financial institutions

• Considered PPP as tool for delivering Considered PPP as tool for delivering urgent projects in critical development areasurgent projects in critical development areas

• Reinforced the government’s confidence Reinforced the government’s confidence on economic growth and self-reliance on economic growth and self-reliance

Page 5: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

IntroductionIntroduction

PPP and Port DevelopmentPPP and Port Development

• Provide funds for port developmentProvide funds for port development

• Reduce government’s financial exposure Reduce government’s financial exposure

• Maximize port facility utilizationMaximize port facility utilization

• Upgrade existing port facilitiesUpgrade existing port facilities

• Broaden Broaden government’sgovernment’s capital base capital base and dispersal of economic benefits and dispersal of economic benefits

• Provide funds for port developmentProvide funds for port development

• Reduce government’s financial exposure Reduce government’s financial exposure

• Maximize port facility utilizationMaximize port facility utilization

• Upgrade existing port facilitiesUpgrade existing port facilities

• Broaden Broaden government’sgovernment’s capital base capital base and dispersal of economic benefits and dispersal of economic benefits

Benefits:Benefits:

Page 6: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Port Development Through Public-Private Sector PartnershipPort Development Through Public-Private Sector Partnership

DEVELOPMENT NEEDS OF PORTSDEVELOPMENT NEEDS OF PORTSDEVELOPMENT NEEDS OF PORTSDEVELOPMENT NEEDS OF PORTS

Page 7: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Master Plan on ASEAN ConnectivityMaster Plan on ASEAN ConnectivityMaster Plan on ASEAN ConnectivityMaster Plan on ASEAN Connectivity

• Support ASEAN Community Support ASEAN Community establishment by 2015establishment by 2015

• Impel ASEAN ports to explore and tap Impel ASEAN ports to explore and tap resources for port development resources for port development

• Identify key infrastructure deliverables Identify key infrastructure deliverables by 2015by 2015

• Support ASEAN Community Support ASEAN Community establishment by 2015establishment by 2015

• Impel ASEAN ports to explore and tap Impel ASEAN ports to explore and tap resources for port development resources for port development

• Identify key infrastructure deliverables Identify key infrastructure deliverables by 2015by 2015

Development Needs of PortsDevelopment Needs of Ports

Page 8: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

ZAMBOANGAZAMBOANGA

GENERAL SANTOSGENERAL SANTOS

ILOILOILOILO

MANILA MANILA South HarborSouth Harbor

North HarborNorth HarborMICTMICT BATANGASBATANGAS

CAGAYAN DE ORO CAGAYAN DE ORO

PPA Vision PortsPPA Vision Ports. . . . . . . . control more than 60% of tradecontrol more than 60% of tradePPA Vision PortsPPA Vision Ports. . . . . . . . control more than 60% of tradecontrol more than 60% of trade

OZAMISOZAMIS

Page 9: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Statistics 2005 2006 2007 2008 2009Shipcall 10,787 9,611 10,054 9,156 9,919

Cargo 2,441,984 2,365,858 2,226,494 2,242,351 2,332,392

Container 87,192 84,485 75,782 81,935 82,559

Passenger 2,321,746 1,989,936 2,050,315 1,901,333 1,788,941

Port ofPort ofIloiloIloilo

Port ofPort ofIloiloIloilo

Development Needs of PortsDevelopment Needs of Ports

Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade

Page 10: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Statistics 2005 2006 2007 2008 2009Shipcall 2,532 2,415 2,341 2,299 2,398

Cargo 3,450,043 3,434,882 3,515,493 3,543,143 3,398,791

Container 202,236 178,458 161,989 150,207 140,860

Passenger 1,381,566 1,233,605 1,188,008 1,034,937 1,016,453

Port of Port of Cagayan de OroCagayan de Oro

Port of Port of Cagayan de OroCagayan de Oro

Development Needs of PortsDevelopment Needs of Ports

Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade

Page 11: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Statistics 2005 2006 2007 2008 2009Shipcall 963 930 911 861 969

Cargo 3,124,963 3,102,365 3,372,023 3,597,396 3,863,137

Container 225,719 260,743 298,671 349,005 392,027

Passenger 152,927 120,826 105,939 89,168 71,673

Port of Port of Davao Davao Port of Port of Davao Davao

Development Needs of PortsDevelopment Needs of Ports

Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade

Page 12: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Statistics 2005 2006 2007 2008 2009Shipcall 960 1,004 936 978 1,027

Cargo 1,603,589 2,108,499 1,678,041 1,936,854 1,903,120

Container 110,108 97,322 103,579 113,886 126,559

Passenger 194,232 178,532 161,596 112,787 104,967

Port of Port of General SantosGeneral Santos

Port of Port of General SantosGeneral Santos

Development Needs of PortsDevelopment Needs of Ports

Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade

Page 13: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Port of Port of ZamboangaZamboanga

Port of Port of ZamboangaZamboanga

Statistics 2005 2006 2007 2008 2009Shipcall 9,901 8,622 7,798 6,766 5,995

Cargo 1,576,421 1,475,554 1,592,664 1,575,206 1,546,523

Container 64,093 60,021 63,675 64,960 79,047

Passenger 2,914,425 2,135,667 2,163,836 2,180,688 2,326,213

Development Needs of PortsDevelopment Needs of Ports

Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade Major Gateways of Trade

Page 14: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Privatized Major GatewaysPrivatized Major GatewaysPrivatized Major GatewaysPrivatized Major Gateways

• MICTMICT• MICTMICT

• Manila South HarborManila South Harbor• Manila South HarborManila South Harbor

• Port of BatangasPort of Batangas• Port of BatangasPort of Batangas

• Manila North HarborManila North Harbor• Manila North HarborManila North Harbor

Page 15: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Major Gateways Major Gateways Major Gateways Major Gateways

•Strategic Locations •Strategic Locations

• Role in ASEAN Port Network• Role in ASEAN Port Network

•Link to BIMP-EAGA•Link to BIMP-EAGA

Regional Hubs Regional Hubs Regional Hubs Regional Hubs

Page 16: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Proposed Development Projects for Proposed Development Projects for MajorMajor Ports Ports Proposed Development Projects for Proposed Development Projects for MajorMajor Ports Ports

Project Proposed WorksEstimated

Project Cost (In Million

PhP)

Implementation Schedule

Iloilo Commercial Port Complex (Expansion

and Improvement Project)

Proposed Extension of RC Wharf (260m x 26.26m)

1,773.43 2011-2015Proposed Reclamation with Sheet Piles (200m x 204m)

Cagayan de Oro Port Expansion and Improvement Project

Proposed Construction of Back-up Area for Open

Transit Shed (5,000 sq.m.)

1,797.09 2011-2015

Davao Port Expansion and Improvement Project

Proposed Construction of Passenger Terminal Building, Allied Facilities, Parking Area

and RORO Ramp at the South End of the Port

4,950.34 2011-2015

Page 17: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Proposed Development Projects for Proposed Development Projects for MajorMajor Ports Ports Proposed Development Projects for Proposed Development Projects for MajorMajor Ports Ports

Project Proposed WorksEstimated

Project Cost (In Million

PhP)

Implementation Schedule

General Santos Port Expansion and

Improvement Project

Proposed Installation of Quay Crane Rail (1 unit)

1,850.76 2011-2015

Zamboanga Port Expansion and

Improvement Project

Proposed Extension of RC Wharf (170m x 24m)

1,974.26 2011-2015

Page 18: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports

Project Estimated Project Cost (In Million PhP)

Implementation Schedule

Dumaguete Port Expansion and Improvement Project

339.21 2011-2015

Tacloban Port Improvement Project 200.00 2011-2015Matnog Port Improvement Project 210.01 2011-2015

San Andres Port ExpansionProject

40.00 2011-2015

San Andres Port ExpansionProject

40.00 2011-2015

Dapitan Port ImprovementProject, Paving

52.74 2011-2015

Page 19: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports

Project Estimated Project Cost (In Million PhP)

Implementation Schedule

Surigao Port ImprovementProject, Paving

29.49 2011-2015

Nasipit Port ImprovementProject, Paving

19.51 2011-2015

Masao Port ImprovementProject

50.00 2011-2015

Esperanza Port Ro-Ro Rampand PTB

40.00 2011-2015

Bais Port, Negros Oriental Port Development

50.00 2011-2015

Dumangas Port, Iloilo ImprovementProject, Paving, Ro-Ro & PTB

80.00 2011-2015

Page 20: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports

Project Estimated Project Cost (In Million)

Implementation Schedule

Lipata, Culasi, Antique Port Expansion Phase 2

40.00 2011-2015

Numancia Port, Akla Port Development

60.00 2011-2015

Numancia Port, Akla Port Development

60.00 2011-2015

Balabac Port Expansion Project

40.00 2011-2015

Coron Port Development Project 180.00 2011-2015

Currimao Port Rehabilitationand Extension Project

100m Ro-Ro Ramp50.00 2011-2015

Page 21: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Development Needs of PortsDevelopment Needs of Ports

Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports Proposed Development Projects for Proposed Development Projects for MinorMinor Ports Ports

Project Estimated Project Cost (In Million)

Implementation Schedule

Kalamansig Port Improvement, Reclamation & Concrete Paving of

3,600sq.m. shore area installation of 9 pcs., V-type RDF, Construction of TMP Bldg.

32.40 2011-2015

Taytay Port Expansion Project 100.00 2011-2015

Calapan Port Admin. Bldg. & Site Development Project

80.00 2011-2015

Plaridel Port, Port Expansion Project 100.00 2011-2015

Page 22: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Medium Term PPA Medium Term Port Port Development ProjectDevelopment Project

PPA Medium Term PPA Medium Term Port Port Development ProjectDevelopment Project(2011 – 2015) (2011 – 2015) (2011 – 2015) (2011 – 2015)

. . . . requires Gross Funding of PhP14 Billion. . . . requires Gross Funding of PhP14 Billion

Development Needs of PortsDevelopment Needs of Ports

Page 23: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA PRIVATIZATION FRAMEWORKPPA PRIVATIZATION FRAMEWORKPPA PRIVATIZATION FRAMEWORKPPA PRIVATIZATION FRAMEWORK

Port Development Through Public-Private Sector PartnershipPort Development Through Public-Private Sector Partnership

Page 24: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Comprehensive National Economic ReformsComprehensive National Economic ReformsComprehensive National Economic ReformsComprehensive National Economic Reforms

• DeregulationDeregulation

• Liberalization of Foreign ExchangeLiberalization of Foreign Exchange

• Passage of New Foreign Investment LawPassage of New Foreign Investment Law

• Passage of New Foreign Banking ActPassage of New Foreign Banking Act

• Passage of Build-Operate-Transfer (BOT) LawPassage of Build-Operate-Transfer (BOT) Law

• DeregulationDeregulation

• Liberalization of Foreign ExchangeLiberalization of Foreign Exchange

• Passage of New Foreign Investment LawPassage of New Foreign Investment Law

• Passage of New Foreign Banking ActPassage of New Foreign Banking Act

• Passage of Build-Operate-Transfer (BOT) LawPassage of Build-Operate-Transfer (BOT) Law

PPA Privatization FrameworkPPA Privatization Framework

Page 25: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization FrameworkPPA Privatization Framework

The role of ports in The role of ports in the Philippines has the Philippines has been regarded withbeen regarded with

The role of ports in The role of ports in the Philippines has the Philippines has been regarded withbeen regarded withutmost importance utmost importance due to the country’s due to the country’s

archipelagic archipelagic topography.topography.

utmost importance utmost importance due to the country’s due to the country’s

archipelagic archipelagic topography.topography.

Page 26: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization FrameworkPPA Privatization Framework

PPA Privatization SchemesPPA Privatization SchemesPPA Privatization SchemesPPA Privatization Schemes

• Whole Terminal LeasingWhole Terminal Leasing• Whole Terminal LeasingWhole Terminal Leasing

• Facilities and Real Estate Property LeasingFacilities and Real Estate Property Leasing• Facilities and Real Estate Property LeasingFacilities and Real Estate Property Leasing

• Port Services ContractingPort Services Contracting• Port Services ContractingPort Services Contracting

Page 27: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA PRIVATIZATION VENTURESPPA PRIVATIZATION VENTURESPPA PRIVATIZATION VENTURESPPA PRIVATIZATION VENTURES

Port Development Through Public-Private Sector PartnershipPort Development Through Public-Private Sector Partnership

Page 28: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

In port development, PPP bridges the gap between

what PPA can undertake and what the private sector can

offer .

Page 29: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT Experience

-- A classic success story of the A classic success story of the Philippine Ports Authority’s Philippine Ports Authority’s PPP initiativePPP initiative

-- A classic success story of the A classic success story of the Philippine Ports Authority’s Philippine Ports Authority’s PPP initiativePPP initiative

Page 30: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:

1.1. PPA Takeover of MICT in 1978PPA Takeover of MICT in 1978 Assumed jurisdiction from Bureau of CustomsAssumed jurisdiction from Bureau of Customs Incurred only two (2) foreign vesselsIncurred only two (2) foreign vessels Handled only a total of 2,858 metric tons of cargoHandled only a total of 2,858 metric tons of cargo Provided with minimal port facilitiesProvided with minimal port facilities Equipped with only two (2) container cranes Equipped with only two (2) container cranes

as main cargo handling implements as main cargo handling implements

1.1. PPA Takeover of MICT in 1978PPA Takeover of MICT in 1978 Assumed jurisdiction from Bureau of CustomsAssumed jurisdiction from Bureau of Customs Incurred only two (2) foreign vesselsIncurred only two (2) foreign vessels Handled only a total of 2,858 metric tons of cargoHandled only a total of 2,858 metric tons of cargo Provided with minimal port facilitiesProvided with minimal port facilities Equipped with only two (2) container cranes Equipped with only two (2) container cranes

as main cargo handling implements as main cargo handling implements

Page 31: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:

2.. PPA-MICT Port Development by AdministrationPPA-MICT Port Development by Administration Spurred by severe cargo congestion problems Spurred by severe cargo congestion problems

in Manila South Harbor in Manila South Harbor Implemented at a cost of PhP300 MillionImplemented at a cost of PhP300 Million Provided major improvements in port facility Provided major improvements in port facility Augmented cargo handling equipment inventoryAugmented cargo handling equipment inventory

2.. PPA-MICT Port Development by AdministrationPPA-MICT Port Development by Administration Spurred by severe cargo congestion problems Spurred by severe cargo congestion problems

in Manila South Harbor in Manila South Harbor Implemented at a cost of PhP300 MillionImplemented at a cost of PhP300 Million Provided major improvements in port facility Provided major improvements in port facility Augmented cargo handling equipment inventoryAugmented cargo handling equipment inventory

Page 32: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:

3. PPA-MICT Port Development by ContractPPA-MICT Port Development by Contract Secured to finance further MICT development Secured to finance further MICT development

requirementsrequirements Implemented at a cost of US$27 Million Implemented at a cost of US$27 Million

and DM12.5 Millionand DM12.5 Million Enhanced port capacity to 450,000 TEUsEnhanced port capacity to 450,000 TEUs

3. PPA-MICT Port Development by ContractPPA-MICT Port Development by Contract Secured to finance further MICT development Secured to finance further MICT development

requirementsrequirements Implemented at a cost of US$27 Million Implemented at a cost of US$27 Million

and DM12.5 Millionand DM12.5 Million Enhanced port capacity to 450,000 TEUsEnhanced port capacity to 450,000 TEUs

Page 33: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:4. PPA Privatization InitiativePPA Privatization Initiative Pursued as a port development strategyPursued as a port development strategy Applied first privatization venture at MICT in 1988Applied first privatization venture at MICT in 1988 Awarded MICT privatization contract to International Awarded MICT privatization contract to International

Container Terminal Services, Inc. (ICTSI)Container Terminal Services, Inc. (ICTSI) Granted 15-year concession period, renewable for Granted 15-year concession period, renewable for

another 25 years another 25 years Stipulated PhP247 Million contractual commitment for Stipulated PhP247 Million contractual commitment for

MICT port development MICT port development

4. PPA Privatization InitiativePPA Privatization Initiative Pursued as a port development strategyPursued as a port development strategy Applied first privatization venture at MICT in 1988Applied first privatization venture at MICT in 1988 Awarded MICT privatization contract to International Awarded MICT privatization contract to International

Container Terminal Services, Inc. (ICTSI)Container Terminal Services, Inc. (ICTSI) Granted 15-year concession period, renewable for Granted 15-year concession period, renewable for

another 25 years another 25 years Stipulated PhP247 Million contractual commitment for Stipulated PhP247 Million contractual commitment for

MICT port development MICT port development

Page 34: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:

4. PPA Privatization InitiativePPA Privatization Initiative Extended ICTSI Contract for another 25 years, Extended ICTSI Contract for another 25 years,

to expire in May 2038 to expire in May 2038 Obligated ICTSI to invest US$126 Million Obligated ICTSI to invest US$126 Million

in additional civil works and equipment in additional civil works and equipment Provided the Philippine Government with Provided the Philippine Government with

substantial savings in port developmentsubstantial savings in port development

4. PPA Privatization InitiativePPA Privatization Initiative Extended ICTSI Contract for another 25 years, Extended ICTSI Contract for another 25 years,

to expire in May 2038 to expire in May 2038 Obligated ICTSI to invest US$126 Million Obligated ICTSI to invest US$126 Million

in additional civil works and equipment in additional civil works and equipment Provided the Philippine Government with Provided the Philippine Government with

substantial savings in port developmentsubstantial savings in port development

Page 35: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:

5. MICT under ICTSI Management and MICT under ICTSI Management and OperationOperationIntensified port activities resulting to significant Intensified port activities resulting to significant growth in cargo throughput and shipping trafficgrowth in cargo throughput and shipping trafficIntroduced improvements in the quality Introduced improvements in the quality of service delivery of service deliveryRe-invented MICT into becoming the largest and most Re-invented MICT into becoming the largest and most modern international port in the countrymodern international port in the country

5. MICT under ICTSI Management and MICT under ICTSI Management and OperationOperationIntensified port activities resulting to significant Intensified port activities resulting to significant growth in cargo throughput and shipping trafficgrowth in cargo throughput and shipping trafficIntroduced improvements in the quality Introduced improvements in the quality of service delivery of service deliveryRe-invented MICT into becoming the largest and most Re-invented MICT into becoming the largest and most modern international port in the countrymodern international port in the country

Page 36: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

The MICT ExperienceThe MICT Experience The MICT ExperienceThe MICT ExperienceHighlights:Highlights:Highlights:Highlights:

5.5. MICT under ICTSI Management and OperationMICT under ICTSI Management and Operation Showcased ICTSI capabilities as port operator Showcased ICTSI capabilities as port operator

with international caliber with international caliber Spurred ICTSI to launch dynamic overseas and domestic Spurred ICTSI to launch dynamic overseas and domestic

expansion program in 1994expansion program in 1994 Earned for ICTSI the respect and regard as a reputable Earned for ICTSI the respect and regard as a reputable

key player in the port industrykey player in the port industry

5.5. MICT under ICTSI Management and OperationMICT under ICTSI Management and Operation Showcased ICTSI capabilities as port operator Showcased ICTSI capabilities as port operator

with international caliber with international caliber Spurred ICTSI to launch dynamic overseas and domestic Spurred ICTSI to launch dynamic overseas and domestic

expansion program in 1994expansion program in 1994 Earned for ICTSI the respect and regard as a reputable Earned for ICTSI the respect and regard as a reputable

key player in the port industrykey player in the port industry

Page 37: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Other PPA Privatization Endeavors Other PPA Privatization Endeavors

• Manila South Harbor

• Manila North Harbor

• Batangas Port Container Terminal A-1, Phase II

• Manila South Harbor

• Manila North Harbor

• Batangas Port Container Terminal A-1, Phase II

Page 38: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Other PPA Privatization Endeavors Other PPA Privatization Endeavors

• Manila South Harbor

Management Contract awarded to Marina Port Services, Inc. (MPSI) in March 1987

MPSI granted exclusive management and operation of arrastre services

Management Contract covered an 8-year concession period to expire in March 1995

• Manila South Harbor

Management Contract awarded to Marina Port Services, Inc. (MPSI) in March 1987

MPSI granted exclusive management and operation of arrastre services

Management Contract covered an 8-year concession period to expire in March 1995

Page 39: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Other PPA Privatization EndeavorsOther PPA Privatization Endeavors Other PPA Privatization EndeavorsOther PPA Privatization Endeavors• Manila South HarborManila South Harbor

MPSI changed company name to Asian MPSI changed company name to Asian Terminals, Inc. (ATI) in 1993 Terminals, Inc. (ATI) in 1993

ATI entered into Compromise Agreement in ATI entered into Compromise Agreement in 1995 to fully integrate cargo handling 1995 to fully integrate cargo handling servicesservices

Compromise Agreement extended Management Compromise Agreement extended Management Contract until 2007Contract until 2007

• Manila South HarborManila South Harbor

MPSI changed company name to Asian MPSI changed company name to Asian Terminals, Inc. (ATI) in 1993 Terminals, Inc. (ATI) in 1993

ATI entered into Compromise Agreement in ATI entered into Compromise Agreement in 1995 to fully integrate cargo handling 1995 to fully integrate cargo handling servicesservices

Compromise Agreement extended Management Compromise Agreement extended Management Contract until 2007Contract until 2007

Page 40: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Other PPA Privatization EndeavorsOther PPA Privatization Endeavors Other PPA Privatization EndeavorsOther PPA Privatization Endeavors• Manila South HarborManila South Harbor ATI entered into Supplemental Contract in 1998 ATI entered into Supplemental Contract in 1998

extending concession period until 2013extending concession period until 2013

ATI to invest not less than US$300 Million in ATI to invest not less than US$300 Million in ten years on infrastructure and equipment ten years on infrastructure and equipment

ATI invested US$134 Million from 1998 to 2008 ATI invested US$134 Million from 1998 to 2008 in infrastructures and equipment in infrastructures and equipment

Port capacity enhanced to annual total of 2,400 Port capacity enhanced to annual total of 2,400 shipcalls, 15.5 MMT cargo and 860,000 TEUsshipcalls, 15.5 MMT cargo and 860,000 TEUs

• Manila South HarborManila South Harbor ATI entered into Supplemental Contract in 1998 ATI entered into Supplemental Contract in 1998

extending concession period until 2013extending concession period until 2013

ATI to invest not less than US$300 Million in ATI to invest not less than US$300 Million in ten years on infrastructure and equipment ten years on infrastructure and equipment

ATI invested US$134 Million from 1998 to 2008 ATI invested US$134 Million from 1998 to 2008 in infrastructures and equipment in infrastructures and equipment

Port capacity enhanced to annual total of 2,400 Port capacity enhanced to annual total of 2,400 shipcalls, 15.5 MMT cargo and 860,000 TEUsshipcalls, 15.5 MMT cargo and 860,000 TEUs

Page 41: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Other PPA Privatization EndeavorsOther PPA Privatization Endeavors Other PPA Privatization EndeavorsOther PPA Privatization Endeavors• Manila North HarborManila North Harbor Manila North Harbor Modernization Project (MNHMP) Manila North Harbor Modernization Project (MNHMP)

implemented to increase existing port capacityimplemented to increase existing port capacity

Manila North Harbour Port, Inc. (MNHPI) accepted Manila North Harbour Port, Inc. (MNHPI) accepted in April 2011 the Management Contract responsibilities in April 2011 the Management Contract responsibilities

MNHPI to undertake port development, management, MNHPI to undertake port development, management, operation, and maintenance over a 25-year periodoperation, and maintenance over a 25-year period

MNHPI to infuse a total of PhP2.27 Billion for port modernization MNHPI to infuse a total of PhP2.27 Billion for port modernization projectsprojects

• Manila North HarborManila North Harbor Manila North Harbor Modernization Project (MNHMP) Manila North Harbor Modernization Project (MNHMP)

implemented to increase existing port capacityimplemented to increase existing port capacity

Manila North Harbour Port, Inc. (MNHPI) accepted Manila North Harbour Port, Inc. (MNHPI) accepted in April 2011 the Management Contract responsibilities in April 2011 the Management Contract responsibilities

MNHPI to undertake port development, management, MNHPI to undertake port development, management, operation, and maintenance over a 25-year periodoperation, and maintenance over a 25-year period

MNHPI to infuse a total of PhP2.27 Billion for port modernization MNHPI to infuse a total of PhP2.27 Billion for port modernization projectsprojects

Page 42: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Marine Slipway

Pier 2

Pier 4

Pier 6

Pier 8

Pier 10

Pier 12

Pier 14

Pier 16

Map of North Harbor

IslaPuting Bato

North Harbor

Existing Existing LayoutLayout

Terminal 1:LO-LO Containers

Terminal 2:LO-LO Containers

Terminal 3:General Cargo

Map of North Harbor

Future Development PlanFuture Development Plan

• Manila North HarborManila North Harbor MNHPI to provide the following major components MNHPI to provide the following major components

of the modernized port: of the modernized port:

Terminal 1 - for containerized vessel operationsTerminal 1 - for containerized vessel operations

Terminal 2 - for containerized vessel operationsTerminal 2 - for containerized vessel operations

Terminal 3 - for non-containerized and Terminal 3 - for non-containerized and bulk/breakbulk vessel operaitonsbulk/breakbulk vessel operaitons

Passenger Terminal Complex - two-story building Passenger Terminal Complex - two-story building for passengers coming from Terminals 1 and 2

• Manila North HarborManila North Harbor MNHPI to provide the following major components MNHPI to provide the following major components

of the modernized port: of the modernized port:

Terminal 1 - for containerized vessel operationsTerminal 1 - for containerized vessel operations

Terminal 2 - for containerized vessel operationsTerminal 2 - for containerized vessel operations

Terminal 3 - for non-containerized and Terminal 3 - for non-containerized and bulk/breakbulk vessel operaitonsbulk/breakbulk vessel operaitons

Passenger Terminal Complex - two-story building Passenger Terminal Complex - two-story building for passengers coming from Terminals 1 and 2

Other PPA Privatization EndeavorsOther PPA Privatization Endeavors Other PPA Privatization EndeavorsOther PPA Privatization Endeavors

Page 43: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

PPA Privatization VenturesPPA Privatization Ventures

Other PPA Privatization EndeavorsOther PPA Privatization Endeavors Other PPA Privatization EndeavorsOther PPA Privatization Endeavors• Batangas Port Container Terminal A-1, Phase IIBatangas Port Container Terminal A-1, Phase II

Management Contract awarded to ATI on Management Contract awarded to ATI on March 25, 2010March 25, 2010

ATI to undertake management, operation, ATI to undertake management, operation, development, maintenance, and promotiondevelopment, maintenance, and promotion

ATI to deliver arrastre, stevedoring, storage, ATI to deliver arrastre, stevedoring, storage, and related container handling services and related container handling services

ATI to provide necessary facilities, cargo handling ATI to provide necessary facilities, cargo handling equipment, gears, and safety implements equipment, gears, and safety implements

• Batangas Port Container Terminal A-1, Phase IIBatangas Port Container Terminal A-1, Phase II

Management Contract awarded to ATI on Management Contract awarded to ATI on March 25, 2010March 25, 2010

ATI to undertake management, operation, ATI to undertake management, operation, development, maintenance, and promotiondevelopment, maintenance, and promotion

ATI to deliver arrastre, stevedoring, storage, ATI to deliver arrastre, stevedoring, storage, and related container handling services and related container handling services

ATI to provide necessary facilities, cargo handling ATI to provide necessary facilities, cargo handling equipment, gears, and safety implements equipment, gears, and safety implements

Page 44: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

INTROSPECTIONINTROSPECTIONINTROSPECTIONINTROSPECTION

Port Development Through Public-Private Sector PartnershipPort Development Through Public-Private Sector Partnership

Whichever path needs to be taken in Whichever path needs to be taken in implementing Public-Private Sector implementing Public-Private Sector

Partnership, upholding the stake Partnership, upholding the stake of the common good should of the common good should

supremely prevail over any other supremely prevail over any other privatization outcome and benefits. privatization outcome and benefits.

Whichever path needs to be taken in Whichever path needs to be taken in implementing Public-Private Sector implementing Public-Private Sector

Partnership, upholding the stake Partnership, upholding the stake of the common good should of the common good should

supremely prevail over any other supremely prevail over any other privatization outcome and benefits. privatization outcome and benefits.

Page 45: A Country Paper presented by the Philippines through the Philippine Ports Authority during the 36 th APA Meeting Siem Reap, Cambodia 8-10 December 2010

Port Development Port Development ThroughThrough

Public-Private Sector PartnershipPublic-Private Sector Partnership

A Country PaperA Country Paper presented by the Philippines presented by the Philippines

through the Philippine Ports Authority through the Philippine Ports Authority during the 36during the 36thth APA Meeting APA Meeting

Siem Reap, Cambodia Siem Reap, Cambodia 8-10 December 20108-10 December 2010