ICTSI refutes vice mayor's allegations

MANILA, Philippines - The International Container Terminal Services, Inc. (ICTSI) yesterday denied allegations made by Manila Vice Mayor Francisco “Isko Moreno” Domagoso and the Manila City Council, saying that its construction of a new berth at the Manila International Container Terminal (MICT) is above board, and with permits and approval from the proper authorities. 

The company explained that the land on which the new berth is being constructed is public domain, located within the Port Zone, over which the Philippine Ports Authority (PPA) has jurisdiction. This land and the improvements being built by ICTSI on it, including the new berth, are in effect PPA property. ICTSI will have no residual claims of ownership in the land and improvements, but only uses them for the duration of its contract.  

ICTSI further explained that being a contractor of the PPA, its operations of, and obligations pertaining to the MICT are governed by PPA policy. The development of a new berth is part of ICTSI’s contractual obligations to the PPA, and ICTSI has obtained approval from the PPA pertaining to this development. Some approvals were from the city authorities, but obtained through the PPA as owner. The permits include a reclamation permit from the Philippine Reclamation Authority (PRA).

The development of the new berth requires some reclamation, for which ICTSI likewise obtained approval and permits from the PRA through PPA intercession. The PRA has exclusive jurisdiction over land reclamation in the country. PPA has asserted exception in respect of reclamation incidental to the construction of ports. The city council on the other hand, claims jurisdiction over reclamation within city limits. 

ICTSI is, in effect, caught between competing jurisdiction of government agencies it deals with.

The company hopes that the dispute is resolved quickly among government agencies so as not to delay the construction of the berth. An ICTSI investment worth $61.4 million, the berth is being constructed to address the increase in Philippine import and export cargo going through the Port of Manila. Completion of the berth will bring to Manila a new taxable property. PPA property is not taxable, but once in use by a private company, it becomes subject to local property tax under the principle of “beneficial user.”

The company stressed that through the entire exercise, it has not kept the construction secret as claimed by the vice mayor. It has filed regular progress reports to various government agencies including the PPA, PRA, Board of Investments and Securities and Exchange Commission, among others. Moreover, the company has issued many news releases since the start of the construction in 2008. Maintaining that it has been a good corporate citizen of Manila during its 22 years existence and a recipient of the “Hall of Fame” award as taxpayer, ICTSI added that it continues to cooperate with the City of Manila as it has always done in the past.

Lim to Moreno: No need to harass ICTSI

In a related developments, Manila Mayor Alfredo Lim said there is no need to harass and browbeat ICTSI and Hanjin, ICTSI’s contractor.

Lim also recognized that aside from being elevated to the city’s “Hall of Fame” for taxpayers, the ICTSI has been consistently undertaking several outreach programs, including education that benefit thousands of the city’s youth in public schools.

He said they are also aware of the questions raised by an ad hoc committee of the city council about whether there were proper permits issued.

“We are of the opinion that the so-called issue is a by-product of the overlapping jurisdiction between the city and the PPA and other national government agencies,” said Lim.

However, he said that while they acknowledge that the PPA used to have exclusive authority in approving construction projects within the port zone in accordance with its charter, the city has to assert authority based on the Local Government Code and the national building code.

Nevertheless, he said, the proper action of responsible governance is to resolve the overlapping claims of jurisdiction among the government agencies involved.

He assured that the Manila City Hall will invite PPA management today to resolve the issue.

The quick resolution of the issues with the PPA, Lim said, should demonstrate the mature and even handed governance in the City of Manila as host and partner.

“Nothing less is expected from the nation’s premier city,” he added.