THE Philippine Interisland Shipping Association (PISA) is proposing the creation of a special purpose company to undertake the immediate modernization of North Harbor.
Former PISA chair and Magsaysay Maritime Corp. chief executive Doris Magsaysay-Ho said the “special purpose vehicle to be created by the PPA (Philippine Ports Authority) will be in charge of the modernization of the North Harbor while waiting for the private sector to take over management and operation of the port.”
PISA, in a proposal taken up at a recent roundtable discussion at the Department of Transportation and Communications, said: “The special purpose vehicle could source the needed funds from international lending institutions such as the Japan Bank of International Cooperation, Japan International Cooperation Agency and other overseas development assistance programs to start immediate modernization as it seems that it would take some time before a contract is awarded to an investor.”
It added the PPA could use the Singapore experience as a model. The Singapore government has in the past created special purpose companies, operating them then later taking the companies private.
The PPA has deferred all action related to the North Harbor privatization and will instead focus its attention on the suit filed by joint venture partners Harbour Centre Port Terminals, Inc and Metro Pacific Investment Corp, the only eligible entity in the first round of bidding.