PPA to remit record-breaking dividend of P3B for 2017

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The Philippine Ports Authority (PPA) is set to remit more than P3 billion in dividend for 2017, its highest contribution to the national coffers since 1986.

PPA, in a statement, said its dividend for last year has eclipsed by at least 30% all the annual dividends it has remitted to the government in the last decade at least, including its previous record of P2.158 billion remitted in 2015.

PPA is mandated to remit 50% of its annual net income to the national government after being granted fiscal autonomy during the term of the late President Corazon C. Aquino.

According to PPA general manager Atty. Jay Daniel R. Santiago, the agency was able to post record-breaking figures due to the reforms implemented by the new administration.

“This is a clear manifestation that we are reaping the benefits of the reforms management implemented in the last two years, that include among others, reduction of documentary requirements, faster turnaround time of trucks and vessels in ports, and modernization of strategic ports,” Santiago said.

“The continuing review of other processes involving port operations, compliance with the Quality Management Standards, and adoption of world’s best practices in port operations will definitely boost PPA’s financial standing in the next couple of years,” he added.

“With the higher dividend, we can guarantee that the National Government can easily implement its anti-poverty measures, particularly in the areas of infrastructure spending and healthcare benefits,” the PPA chief stated.

Compared to the 2016 dividend of P1.956 billion remitted to the government last year, PPA said the 2017 figure is higher by 54% due to the strong performance of the Manila ports—composed of Manila International Container Terminal, Manila South Harbor, and North Port (Manila North Harbor)—complemented by the 24 other Port Management Offices, which likewise posted favorable performances last year.

The agency’s total expenses in 2017 increased by some 11% as a result of increased productivity in project implementation. Productivity rate went up to 90% compared to 7% a year earlier, PPA said.

“This is a very welcome development for the PPA considering that it has forecasted earlier that growth is at best flat for 2017 due to concerns [clouding] the country’s mining industry and the volatile foreign exchange rates,” Santiago said.

For the past few years, PPA has been a regular member of the “Billionaires Club” of government-owned and controlled corporations (GOCCs) that contributes billions of pesos in dividends. With this incoming all-time-high dividend by PPA, it is expected to maintain its membership in the elite list of GOCCs.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net