BCDA says Poro Point dispute results in mounting losses

The Bases Conversion Development Authority (BCDA) warned yesterday that the dispute over the operation of the Poro Point seaport and bulk terminal in San Fernando, La Union, is resulting in mounting losses due to the suspension of all activities in the facility since Aug. 10.

In a press conference, BCDA president and chief executive officer Gen. Narciso L. Abaya (ret.) clarified that the dispute stemmed from the continued failure of the Poro Point Industrial Corp. (PPIC) to secure an environmental compliance certificate (ECC) from the Department of Environment and Natural Resources (DENR).

PPIC was issued a cease-and-desist order (CDO) by the DENR for failure to secure the necessary ECC to operate the Poro Point facility.

PPIC had been cited by the local government of San Fernando for several violations that include pollutive waste water, coal materials and several fire hazards.

Without the necessary ECC, Abaya explained, PPIC cannot operate the port.

Thus, the BCDA had asked the Philippine Ports Authority (PPA) to temporarily take over the management of Poro Point until the PPIC is able to secure the necessary ECC.

Abaya warned that because of the dispute, all operations in the facility have stopped resulting in still uncalculated losses for all businesses and shipping firms using the port.

The PPIC, for its part, was able to secure a temporary restraining order (TRO) from the San Fernando City Regional Trial Court stopping the BCDA and the Poro Point Management Corp. from taking over the Poro Point seaport and bulk terminal.

PPIC is claiming that the BCDA and PPMC is trying to have a 1999 contract between PPIC consortium members and the government declared null and void.

PPIC has a 25-year lease contract.

Abaya clarified that if PPIC is not able to secure the necessary ECC from the DENR, it cannot operate the port facility and the BCDA will have to rebid the management contract to another firm that can secure the required permits.

Abaya denied a continuing armed standoff at Poro Point, assuring that except for the initial, tense dispute, there is now a peaceful standoff.