Guingona: EO to create port monopoly

Senate Minority Leader Teofisto Guingona Jr. warned yesterday that a newly issued executive order would pave the way for the monopoly in the operation of ports throughout the country by persons close to the administration.

Guingona said a provision of Executive Order 59 that seeks to create a big private monopoly to operate all existing government ports is "very unfair and uncompetitive."

He warned that this provision would lead to one group's having a stranglehold on all government ports and leave port users no choice on which operators to use.

He cited another provision of the EO that authorizes an implementing agency to enter into a negotiated contract with any private company of its choice without any public bidding.

"This denies the government the best possible deal and could greatly harm public interest and the economy," Guingona asserted.

He also said that negotiated contracts lack the transparency required in any government transaction.

"This and the absence of competition could be disadvantageous to the people and to the economy as a whole," Guingona said, as he echoed the call of numerous sectors to amend these provisions of the EO.

He also expressed fears that the EO would discourage new players, both local and foreign, from participating in the port modernization project, and would not get the needed support of international financial institutions.

The Philippine Ports Authority (PPA), however, sought to allay fears that the EO would result in a monopoly. It pointed out that the EO has been virtually set aside with the issuance of a new one turning the ports privatization and modernization scheme into a build-operate-transfer project.

The PPA said that with this new development, a private consortium has submitted an unsolicited proposal where it would handle all financial requirements.

It said that the private consortium is composed of port users, shipping lines and port workers so it could not possibly result in monopoly.

"The consortium is represented by all players at the ports. Ports operators, shipping lines and labor will all contribute their specific expertise to prove all port users with an efficient transport hub," the statement added.