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annual

r e p o r t

www.ppa.com.ph

Bonifacio Drive, South Harbor


Port Area, Manila, 1018 Philippines
P.O. Box 436, Manila, Philippines
Tel. No. (0632) 527-8356, Fax: (0632) 527-4855

Steering the Right Course through Best Practices

OUR COVER
Steering the Right Course through Best Practices
From sun up till sun down, the Philippine Ports Authority (PPA) tirelessly contributes to the countrys
national progress and economic development through facilities and services borne out of its more than
three decades of expertise in the port industry.
PPA continually strives to employ and adapt the best practices in the industry through efficient and
round-the-clock services in its nationwide network of port facilities. Hence, the theme of the annual report,
Steering the Right Course through Best Practices, captures the various elements that lead to the desired
directions of excellence and good governance that PPA consciously undertakes.
With a ships steering wheel as graphic element, the cover of the annual report presents PPAs continuing
resolve to employ widely-accepted and best practices through technology-backed systems and facilities.
The designs primary hue, the color violet, represents stability and steadfastness as interpreted in color
psychology.

TABLE OF CONTENTS
1Vision and Mission 2Message of the General Manager
6Shipping and Trade Performance 12Port Services
18Physical Infrastructure Development

& Maintenance

24Financial Performance 28Sustainability, Environment & People


342010 PPA Performance at A Glance 36Port Statistics
42Independent Auditors Report
44Financial Statements 48Notes to Financial Statements
60Board of Directors 62Executive Officers/Department Managers
64PDO/PMO Managers

The PPA 2010 Annual Report cover is printed on 9 lives, 55% Recycled Silk 300gsm. The usage of 9 lives, which is made of 55%
- 100% post consumer fiber, is a sustainable solution in illustrating environmental approach without compromising printing quality.

Port of Iligan

Passenger Terminal under


PMO Pulupandan

Port of Cagayan de Oro

Port of Ormoc

VISION

By 2030, customers doing business in our


ports shall experience full and sustained Productivity,
Efficiency, Comfort, Connectivity, Safety and Security.

MISSION

We commit to provide reliable and responsive services in our ports, sustain


development of our port communities and the environment, and be a model
corporate agency of the government.

CORPORATE VALUES

Creativity:
Responsibility:


Ethics:

Sincerity:

Teamwork:

Innovation, Adaptability.
Accountability, Taking and
Managing Risks.
Integrity within Moral Bounds.
Commitment to Fulfill Mandate
Synergy of Working Together

MESSAGE OF THE GENERAL MANAGER

With benign indications in the economic environment


favoring this fiscal year, I am pleased to inform you that our
organization, the PPA turned in another strong performance
as it surpassed imposed targets and hurdled risks attendant
to its operations. PPA ended 2010 with gross revenues of
P8.295 billion, 16.36 percent higher than its 2009 earnings
and a net income of P1.491 billion, albeit 7.5 percent lower
than the previous year. The top three traditional sources
which account for 74.42 percent of total revenues derived by
PPA from port operations - fees being remitted by the ICTSI
(International Container Terminal Services, Inc.), wharfage
dues and share in arrastre/stevedoring income continued
to boost PPAs coffers. Our total asset base or resources

showed steady expansion, ending the year at P95 billion and


is expected to breach the P100 billion mark in a year or two.
Your Management is pleased to report that the robust
economic expansion in 2010 mirrored the double-digit
growth in the volume of cargo, passenger and shipcalls
at the ports. Total cargo volume rose by 11.01 percent;
shipcalls by 10.04 percent; container volume in TEUs
by 12.12 percent; and passenger by 20.12 percent . The
growth in cargo volume in particular was fuelled by the
23.91 percent increase in foreign cargoes, more than
offsetting the 2.97 percent decrease in domestic cargo.
Our major gateways with the exception of Cagayan de

Oro, Nasipit, Pulupandan and Batangas, experienced


dramatic jump in their foreign cargoes with the most
contribution coming from Surigao, San Fernando, MICT,
South Harbor, Iloilo, Limay and Davao in that order. While
stiff competition from budget airline carriers persisted
and posed a threat, a significant jump in passenger
volume was realized in 2010. The marked increase in
passengers travelling by sea likewise reinforces the
contribution of our well-entrenched nationwide Ro-Ro
links in inter-island sea travel.
In 2010, PPA invested P 3.42 billion in 74 port projects
and completed 40 projects amounting to P1.74 billion
in various port districts. The commitment to sustain
investments in infrastructure facilities shall always be
in line with our mandate and the priority corporate goal
of boosting the capacity of our ports to handle increased
volume of cargo, passengers and ship calls.
With the numeric fundamentals pointing to a much
improved overall performance, our strategic thrusts
will remain tightly hinged on sustaining efficient port
operations and management of our ports and applying
best practices in all facets of our business operations and
processes and delivery of services to our stakeholders
and clientele.
For instance, we are on the road to being fully compliant
in one of our most widely employed operational processes
VESSEL ENTRANCE AND CLEARANCE (VEC). We are
within reach of the final stages of securing our first
ISO 9001:2008 Certificate for the Facilitation of Vessels
Entrance and Clearance Processes at the pilot Port of
Batangas. Subsequently, we are targeting for replication
this ISO certification in our other key ports nationwide.
Getting the ISO-QMS certification on the vessel entrance
and clearance process at Batangas Port and our other
key ports nationwide affirms our commitment to apply
internationally accepted best practices in port operations.
We will also continuously find ways to raise the bar
of efficiency and quality management in our port
operationsparticularly onthe areas ofsafety and security
of the passengers and cargoes that pass throughthe
major gateways.Most of our baseports are now equipped
or are in the process of being equipped with the ISPSmandated security-related equipment such as baggage
x-ray machines, walk-thru metal detectors, CCTVs, etc.
On the other hand, we have included the mandatory
implementation of weighbridges to ensure that vehicles
will carry only their corresponding capacity load limits.
We will not limit our efforts on securing the safety
of cargoes. The welfare of the passengers, especially
women and children transiting through our seaports
is equally paramount. Towards this end and as part
of our corporate social responsibility, we are happy to
note that PPA now has seven (7) strategically-located
halfway houses or Bahay Silungan sa Daungan or BSDs
nationwide, namely, in Manila, Batangas, Iloilo, Matnog,
Surigao, Davao and Zamboanga which which we comanage with our partner Visayan Forum Foundation,
Inc. or VFFI , a non-government organization focused
on migrant workers and childrens welfare and victims

of human trafficking. Our BSD operation which we


conceptualized as early as 1998 through our Gender and
Development Program (GAD) at the seaports is cited as a
pioneer effort and a best practice on curbing Trafficking
in Persons (TIP) by several international groups, among
them the United States State Department.

We are also eyeing the implementation of a Passenger


Boarding Monitoring and Control System or simply
the E-Ticketing System in our high volume passenger
servicing ports. As a participating government agency,
PPA stands to benefit from the use of a web-configured
technology-based system that will facilitate data entry,
storage, retrieval and generation of reports of on-board
accurate passenger count that is within the optimum
carrying capacity of the vessel and security verification of
passengers and cargoes that are on board the vessel. The
E-Ticketing System will hopefully address the problems
associated with overloading of passengers and provide
our sea travelling public with a safe, pleasurable and
hassle-free journey to their respective destinations.
There are many more areas in our entire operations
requiring the application of best practices. At the
center of our continuous improvement processes, the
nationwide MIS Computerization Program, which is now
nearing its final stages of acceptance has made possible
the widespread use of technology in the transmission,
storage, retrieval and sharing of PPA-wide missioncritical information/data designed to facilitate short-and
long-term Management decision-making and application
to our daily work.
As we dare to challenge the status quo and overcome
barriers to achieve best practices in all facets of our
operations, we will always be inspired by our over
2000-strong workforce who has contributed more than
their share in running PPA 24/7. Looking forward to
many more years of successful operation, we shall always
consider as dominant the belief that the application of
best practices comes with a corresponding take on good
governance processes. With the proper trust and support
of our Board of Directors and the cooperation of our
stakeholders, we are confident that PPA shall at all times
stay on the right course in establishing water transport
as the main catalyst of trade and economic development.

JUAN C. STA. ANA


General Manager

Port of Bauan

SHIPPING AND TRADE


PERFORMANCE

South Harbor, Manila

South Harbor, Manila

SHIPPING AND
TRADE PERFORMANCE

Port of Iloilo

Port of Iligan

Port of Bacolod

Cargo, Passenger and Ship Traffic


Cargo
Trade Performance
Stirred by the 7.3 percent growth of the countrys economy for 2010, total cargo volume handled at the ports nationwide
rose by 11.01 percent. Overall trade performance is shown in the following table.
Table 1: CY 2010 Cargo Throughput, Container, Passenger & Ship Calls
2010
Cargo m.t.
Domestic
Foreign
Import
Export
Container (in TEUs)
Domestic
Foreign
Import
Export
Passenger
Domestic
Foreign
Shipcalls
Domestic
Foreign

166,395,680
69,796,900
96,598,780
55,131,588
41,467,192
4,497,634
1,639,859
2,857,775
1,443,501
1,414,274
52,701,645
52,638,664
62,981
346,000
335,202
10,798

2009
149,895,054
71,936,419
77,958,635
47,583,576
30,375,059
4,011,531
1,593,039
2,418,492
1,221,914
1,196,578
43,872,565
43,820,426
52,139
314,421
304,643
9,778

Inc/(Dec)
Volume
16,500,626
(2,139,519)
18,640,145
7,548,012
11,092,133
486,103
46,820
439,283
221,587
217,696
8,829,080
8,818,238
10,842
31,579
30,559
1,020

%
11.01
(2.97)
23.91
15.86
36.52
12.12
2.94
18.16
18.13
18.19
20.12
20.12
20.79
10.04
10.03
10.43

Cargo
Total cargo throughput during the year was 11.01 percent
or 16.5 million metric tons (MMT) higher vis-a-vis 2009
signifying a more intense movement of goods passing
through the countrys ports. Foreign cargo went up by
18.64 MMT or a double-digit increase of 23.91 percent.
Domestic cargo, however, went down by 2.97 percent or
2.14 MMT.
The Exports industry is by far the most dynamic, growing
as much as 36.52 percent or 11.09 MMT during the
period. Imports, likewise, went up by about 7.55 MMT
or 15.86 percent. The higher demand for prime export
commodities such as mineral ores, nickel ores, limestone,
cold rolled coils and coco oil, etc.; and, importation of rice,
coal and other raw materials was evident in the sharp
increase of foreign cargo throughput at the various ports
led by PMOs Surigao (5.53 MMT), San Fernando (3.37
MMT), MICT (2.54 MMT), South Harbor (2.23 MMT) and,
Iloilo (1.78 MMT). Domestic cargo, on the other hand,
declined in 8 of the 24 PMOs. The decrease was highly
felt at PMOs North Harbor - 2.26 MMT (15.95 percent);
Legazpi - 2.23 MMT (47.03 percent); Pulupandan - 0.14
MMT (2.42 percent); and Batangas - 0.86 MMT (12.19
percent), among others.
Overall, six (6) PMOs did not fare well and posted
decreases in 2010, namely: PMOs Legazpi, North Harbor,
Batangas, Pulupandan, Nasipit and Cotabato.

Foreign & Domestic


Cargo Volume
(2010 vs 2009)

150
100
50
0

2009 Domestic
2010 Foreign

Passenger Terminal, Port of Iloilo

Container (in TEUs)


Container traffic continued its strong showing during the
year as it reached a total of 4.497 million TEUs, a notable
12.12 percent improvement from last year. In fact, import
container traffic grew by 18.13 percent while export
posted a growth of 18.19 percent. The robust traffic in
foreign containerized cargoes contributed to the upward
trend as it grew 18.16 percent.
Of the total volume of containers handled in Philippine
ports, 2.60 million TEUs or 57.83 percent passed through
the ports of MICT and PMO South Harbor (which includes
the Pasig Terminal). The combined share in foreign
container traffic of these two ports accelerated by 0.34
MMT or 16.59 percent by 2010.
All PMOs registered growth in the volume of their
container throughput with the exception of five PMOs
which reported declines in 2010 compared to 2009:
Surigao (18.86 percent); North Harbor (13.27 percent);
Dumaguete (3.47 percent); Pulupandan (3.44 percent);
and Dapitan (2.16 percent). Gainers were led by PMO
Davao (28.97 percent), PMOs South Harbor (17.80 percent)
and MICT (15.14 percent) which are the traditional major

2010 Distribution of
Containerized Cargoes

staging areas of
containers. The
transition from
PPA-managed to
privately-managed
terminal might have
affected business
operations in North Harbor.

Passengers
The 2010 election as well as the
continuing shift towards the use
of the SRNH route in travelling from
Manila to Visayas contributed to
the marked increase in the volume
of passengers that availed of water
transport. Nationwide domestic and
foreign traffic surged by 20.12 percent
or 8.82 million and 20.79 percent,
respectively, during the year. Growth
in passenger traffic was evident in the
PMOs of Batangas (31.59 percent);
Calapan (31.30 percent); Iligan (45.03
percent); Legazpi (34.05 percent); and
Tacloban (38.41 percent).

Ship Calls
The countrys ports serviced 346,000
vessels in 2010, a growth of 10.04
percent compared to the previous
year. Domestic and foreign ship
calls grew by 10.03 percent and
10.43 percent, respectively, an
indication of recovery and
improvement in both global
and domestic economy.
MICT & SH. 57.83%
Other Ports 42.17%

Port of Iloilo

PORT SERVICES

10

Port of Iloilo

11

South Harbor, Manila

Port of Iloilo

12

South Harbor, Manila

PORT SERVICES
Private Ports Operations

Table 4: APPROVED COR / PTO, CY 2010

Permit/Clearance to Develop

COMPANY

As of end of December 2010, the PPA has approved


Clearance to Develop private port facilities in favor of the
following three (3) private corporations:

LOCATION

PDO MLA./NORTHERN LUZON


Island Integrated Offshore
Services., Inc.

COMPANY

LOCATION

La Paz Milling Corp.


Oilink International Corp.

Table 2: APPROVED CLEARANCE TO DEVELOP, 2010

Cristobal St., Paco, Manila


Manila Habor Center Complex,
Tondo, Manila
Manila Habor Center Complex,
Tondo, Manila
Lucanin Pt., Mariveles, Bataan

PNOC Alternative Fuels Corp.

Batangas Dos, Mariveles, Bataan


Mall of Asia Complex,
Pasay City

La Filipina Uy Gongco Corp.

1. Carlos Gothong Lines

Port of Nasipit

SM Land Inc.

2. H.Y. Chromite Mining


& Devt. Corp.

Brgy. Esperanza,
Loreto, Dinagat

Petron Corp.

3. Niera Corporation

Brgy. Tugbo, Mobo,


Masbate

PDO SOUTHERN LUZON

Lease Contracts
The Authority approved the 10-year contract
application of Goldwin CFS located at Blk. 168,
Railroad St., cor. 18th and 19th Sts., South Harbor.

Certificate of Registration (COR)/Permit


to Operate (PTO)
In 2010, the Authority issued thirty-one (31)
certificates of registration or permit to operate (COR/
PTO) to various corporations of which eight (8) were
under PDO Manila/Northern Luzon, four (4) under
PDO Southern Luzon, nine (9) under PDO Visayas,
two (2) under PDO Northern Mindanao and eight (8)
under PDO Southern Mindanao. (Table 4).

SMC Shipping & Lighterage Corp.

Limay, Bataan
BASECO Compound,
Mariveles, Bataan

EEI Corp.
Investment Mineral
Development Corp.

Bauan, Batangas
Calambayungan, Brgy, Larap, Jose
Panganiban, Camarines Norte

J.G. Summit Corp.

Mabini, Batangas

Rio Tuba Nickel Mining Corp.

Rio Tuba, Bataraza, Palawan

PDO VISAYAS
Central Azucarera de Bais

Brgy. Luka, Tanjay, Negros Oriental

Iloilo Jar Corp.


Lazi Bay Resources
Development, Inc.

Bo. Obrero, La Paz, Iloilo City

Nicua Corp.

MacArthur, Leyte

Orica Nitrate Phils. Inc.


Phil. Associated Smelting
& Refining Corp.

Brgy. Buntis, Bacong, Neg. Or.


Leyte Industrial Development
Estate, Isabel, Leyte
Brgy. Rawis, Anibong,
Tacloban City

Pilipinas Shell Petroleum Corp.


San Carlos Bioenergy Inc.

Bo. Simacolong, Lazi Siquijor

Tacloban Oil Mills Inc.

Brgy. I, San Carlos City, Neg. Occ.


Brgy. Opong, Tolosa,
Northern Leyte

PDO NORTHERN MINDANAO

Global Steel Phils.

Camp Overton, Iligan City


La Fraternidad, Tubay,
Agusan del Norte

SR Metals Inc.

PDO SOUTHERN MINDANAO


Craft Haven International

KM. 15 Panacan, Davao City

Davao Bay Coconut Oil Mills, Inc.

Brgy. Panacan, Davao City

Himmel Industries Inc.

Sasa, Davao City

Insular Oil Corp.

Km.10, Sasa, Davao City

Legaspi Oil Co.


Phil. International
Development Inc.

Sasa, Davao City


Baliwasan Seaside,
Zamboanga City
Baliwasan Seaside,
Zamboanga City

San MIguel Corporation


Tagum Agricultural
Development Co. Inc.

Panabo, Davao del Norte

13

Cargo Handling Service Contracts/Permits/Hold-Over Authority (CHO/PTO/HOA)


PPA awarded a total of twenty one (21) CHO/PTO/HOA with varying duration of one (1) month to 15 years (long term)
during the year, as shown in table 5.

Table 5: Issued CHO/PTO/HOA, CY 2010


COMPANY

LOCATION

3 - MONTHS (HOA)
1.

Sunriser Arrastre & Stevedoring Svcs.

Port of Clarin, Clarin, Bohol

1 - MONTH (HOA)
2.

Odiongan Integrated Arrastre & Stevedoring


Contract Svcs. Corp.

3.
4.
5.

FTM Brokerage & Port Svcs., Inc.


Prudential Customs Brokerage Svcs., Inc.
United Plywood Corp.

Port of Poctoy, Odiongan, Romblon

1 - YEAR
Anchorage Area, Dinapigue, Isabela
Port of Brooks Point, Palawan
Anchorage area Molugan, El Salvador, Misamis Oriental

3 - YEARS
6.
7.

Doming Arrastre & Stevedoring Svcs.


Dapa Labor Svcs.

San Jose, Dinagat Island


Port of Dapa, Siargao Island, Surigao del Norte

5 - YEARS
8.
Aurum Pacific Consolidated Inc.
9.
Prudential Customs Brokerage Svcs., Inc.
10. Antique Cargo Handling & Port Terminal Svcs.
11. FTM Brokerage & Port Svcs. Inc.
12. Jagna Arrastre & Terminal Svcs.
13. Leyte Integrated Port Svcs. Inc.
14. San Vicente Arrastre & Stevedoring Svcs.
15. Ubay Arrastre & Stevedoring Corp.
16. Northeastern Mindanao Handlers & Forwarders Inc.
17. Apollo Arrastre & Stevedoring Svcs., Inc.

Port of Currimao, Ilocos Norte


Port of Coron, Puerto Princesa
Port of Lipata, Culasi, Antique
Port Estancia, Estancia, Iloilo
Port of Jagna, Bohol
Port of Palompon, Leyte
Port of Hilongos, Hilongos, Leyte
Port of Ubay, Bohol
Port of Aras-asan, Cagwait, Surigao del Sur
Port of Tandag, Surigao del Sur

8 - YEARS
18.

Mega Equipment International Corp.

Govt berths along Pasig River

SUPPLEMENTAL CONTRACT
10 - YEARS
19.

Oroport Cargo Handling Svcs. Inc.

Port of Cagayan de Oro

NOTICE OF AWARD ISSUED


25 - YEARS
20.

Asian Terminals, Inc.

Container Terminal A-1 (Phase 2), Port of Batangas

MEMORANDUM OF AGREEMENT
3 - YEAR (MOA)
21.

LGU- Sarangani

Port of Mabila, Mun. of Sarangani, Davao del Sur

Harbor Pilot Appointments


For 2010, PPA issued appointments for 4 chief pilots, 5 regular pilots and 4 probationary pilots at various pilotage
districts.

14

Port of Cagayan de Oro

15

PHYSICAL INFRASTRUCTURE
DEVELOPMENT
AND MAINTENANCE
Port of Iligan

Port of Pulupandan

16

Port of Cagayan de Oro

Ongoing Improvement at Port of


Banago under PMO Pulupandan

Ongoing Improvement at Port of Coron

17

PHYSICAL INFRASTRUCTURE
DEVELOPMENT AND MAINTENANCE
Completed and Ongoing LocallyFunded Projects
The year 2010 saw the completion of 40 Locally-Funded
Projects (LFPs) amounting to P1.74 billion. PPA invested
a total of P3.42 billion for 74 LFPs nationwide: 10 projects
in PDO Manila/Northern Luzon; 31 in PDO Southern
Luzon; 14 in PDO Visayas; 9 in PDO Northern Mindanao;
and 10 in PDO Southern Mindanao. As of yearend,
34 projects amounting to P1.68 billion are in various
stages (i.e. ongoing/ suspended/ terminated/under
procurement).

CY 2010

Distribution of 2010 LFPs


5.68%

34.93%

12.13%

Completed & Ongoing


Locally-Funded Projects
in billion
3

34.23%

13.03%

PDO Northern Mindanao

PDO Manila/Northern Luzon

PDO Southern Mindanao

PDO Visayas

PDO Southern Luzon

1.74 Completed
1.68 Ongoing

As in previous years, PDO Southern Luzon captured the


lions share of the total capital investment with a share of
34.93 percent or P1.20 billion. This is followed closely by
PDO Visayas (P1.17 billion or 34.23 percent). Completing
the distribution are PDO Manila/Northern Luzon (P446.10
million or 13.03 percent), PDO Northern Mindanao
(P415.38 million or 12.13 percent) and PDO Southern
Mindanao (P194.61 million or 5.68 percent).

18

Among the big Capital Expenditure Program (CAPEX)


infrastructure projects completed within the year are the
Dumaguete Port Expansion Project and the Ubay Port
Expansion Project Phases 1 & 2. PPA also completed the
construction of the Catagbacan Cruise Ship Berth at a
total cost of P71.73 million to further boost tourism in the
Bohol Region, while the Upgrading of Existing Breakwater
Project at the South Side of South Harbor, Cagayan de Oro
Port Improvement and Ozamiz Port Expansion Projects
are ongoing as of yearend.

Dredging Operations
To ensure the safe navigation of large vessels calling
at the ports, PPA allotted some P546.64 million for its
CY 2010 Dredging Program. The amount covered the
removal of 1.84 million cubic meters of silts from 9 ports
nationwide and was implemented under the privatized
set-up with F.F. Cruz & Company, as contrator.

Passenger Terminal, Port of Iloilo

Passenger Terminal, Port of Iligan

19

Hydrographic and
Topographic Surveys

Areas Covered by CY 2010 Dredging


North Harbor Entrance Channel (starting from Breakwater)
South Harbor Fairway Channel leading to Piers 9 & 13
South Harbor Fairway Channel leading to Piers 3 & 5
South Harbor Anchorage
Batangas Baseport (Phase II)
Brookes Point, Puerto Princesa
Cajidiocan, Romblon
Matnog, Sorsogon
Iloilo River (Phase 1), Baseport, Iloilo
MICT (carry-over, completed in 2010)
Dumaguete (carry-over, completed in 2010)

A total of fifty-three (53) hydrographic and topographic


surveys were undertaken and completed in 2010. Thirtyfive (35) of these surveys were programmed during the
start of the calendar year and 18 were unprogrammed
and undertaken to support port planning, project
development and identification of areas for port zone
delineation.

Repair and Maintenance Program


To maintain the serviceability and safety of existing
port facilities nationwide, PPA allocated P1 billion for its
repair and maintenance program for CY 2010. Of this
amount, P795.58 million or 79.58 percent were allotted
for repair projects, P189.66 million or 18.97 percent for
maintenance projects, P3.50 million for Head Office
engineering projects, P10.00 million or 1.00 percent for
GAD-related projects and P1.26 million or 0.13 percent for
other unprogrammed projects.
Of the 112 repair and maintenance projects pursued
during the year, 26 were completed and 42 are ongoing,
43 are under procurement and 1 project was cancelled/
deferred as of year-end. PDO Southern Luzon received
the biggest allotment of the R&M Budget at P383.11
million with 37 projects, followed by PDO Visayas
(P207.34 million, 21 projects), PDO Northern Mindanao
(P177.44 million, 25 projects), PDO Manila/Northern
Luzon (P129.03 million, 17 projects), and PDO Southern
Mindanao (P88.32 million, 12 projects).

Port of Iligan

PMO Iloilo Staff

20

Repair & Maintenance CY 2010 Budget


in million

P88.32

P3.50

P10.00

P1.26
P129.03

P177.44

of Iloilo

P207.34

P383.11

Visayas

Northern Mindanao

Southern Mindanao

E&A Exp

GAD

Unprogrammed

Manila/Northern Luzon

Southern Luzon

Consultancy Services for Engineering-Related Studies


In 2010, consultancy services for the formulation of master plans and conduct of feasibility study (MP/
FS) of priority ports for development totalling P17.01 million were undertaken. Ports covered were
those under PDO Northern Mindanao, i.e. Surigao, Cantilan, Dona Helene, Hayangabon, Jubang,
Lipata Ferry Terminal, Jimenez, Silanga, Opol and Banga-an and Sultan Naga Dimaporo.
Pre-Bidding, Opening of Technical Proposal and Financial Bid were held in December
2010. The MP/FS was undertaken to determine the long-term directions in the
development of the selected ports and to evaluate the technical soundness,
operational and economic feasibility and financial viability of any
proposed short-term improvements and/or expansion of these ports.
Complementing the MP/FS are Initial Environmental Examinations
(IEEs) of each of the study port.
In addition, consultancy services for the conduct of soil
investigation for 35 identified ports in Luzon, Visayas
and Mindanao worth P17.90 million was undertaken to
provide the needed information for foundation design
analysis and for the evaluation of alternative type
of structures. The work shall cover the drilling and
testing of soil samples. Pre-Bidding Conference,
Opening of Technical Proposal and Financial Bid
were also held in December 2010.

21

FINANCIAL PERFORMANCE

A vessel approaching the Port of Iligan

22

Manager Noeme W. Calderon with staff

23

Manager Edgar C. Pilar with staff

FINANCIAL PERFORMANCE
Revenue
In 2010, PPAs gross revenue reached P8,295.62 million,
an increase of at least P1,166.49 million or 16.36
percent from the 2009 figure. Port revenue generated
amounted to P8,123.39 million, a substantial increase of
P1,136.62 million or 16.27 percent from last year. Fund
Management Income (FMI) also grew from P142.35
million in 2009 to P172.32 million this year, which is at
least a P29.97 million or 21.05 percent increase.
ICTSI fees contributed the bulk of PPAs revenue
amounting to P2,760.14 million (34 percent), followed by
wharfage dues at P1,671.02 million (21 percent), vessel
charges at P1,190.93 million (15 percent), ATI Fees at
P923.57 million (11percent), arrastre/stevedoring income
at P678.07 million (8 percent), other sources of income at
P423.50 million (5 percent), and pilotage/storage fees at
P320.49 million (4 percent), and VTMS and Terminal Fees
at P226.30 million (21 percent).

PDO Northern Mindanao and Visayas likewise


posted positive growth of P70 million and P62 million
respectively.
Overall improvement in the performance of PPA ports
appears to have been driven by the countrys increased
economic activity during the year, as spurred by electionrelated activities and renewed trust by foreign investors.

Revenue by Source or Tariff Item


PPA derives its port revenue from wharfage, dockage, port
dues, usage fees, storage, pilotage, terminal fees, rental,
share in arrastre/stevedoring, management fees, and
other ancillary services. Revenue shares by source are
shown below.
Port Revenue by Source, 2010
(in million pesos)
COMPARATIVE PORT REVENUE
2010 vs. 2009

Gross Revenue by PDO


Port performance in terms of revenue generation for the
year 2010 has been very satisfactory with the five PDOs
contributing to combined earnings of more than P8 billion
or 16 percent higher than the figure posted during the
same period in 2009.
Growth was spearheaded by Manila/Northern Luzon
followed by Southern Luzon and then by Southern
Mindanao with each one having grown by P744 million,
P134 million, and P123 million respectively.
Port by PDO
CY 2010, In Million Pesos
PDO
Manila/
Southern Luzon

5,455.28

4,711.11

15.80%

Southern Luzon

904.00

769.66

17.45%

Visayas

499.75

437.29

14.28%

Northern Mindanao

24

Deviation

534.08

466.61

14.46%

724.17

597.31

21.24%

8,117.28

6,981.98

16.26%

2010
383.87

% of Total
4.73%

Increase/
(Decrease)
347.51
10.46%

2009

Dockage

521.29

6.42%

443.34

17.58%

Usage Fees

273.47

3.37%

239.81

14.04%

Lay-up Fees

12.30

0.15%

1.91

543.98%

1,671.02

20.57%

1,394.00

19.87%

289.42

3.56%

200.50

44.35%

678.07

8.35%

461.21

47.02%

423.50

5.21%

352.19

20.25%
33.12%

Wharfage Dues
Storage
Arrastre/
Stevedoring
Other Income
Pilotage

2009

Southern Mindanao

Port Dues

ICTSI Fees

2010

Total

Account

ATI Fees
VTMS Fees
Terminal Fees
Total

31.07

0.38%

23.34

2,760.14

33.98%

2,526.89

9.23%

923.57

11.37%

769.76

19.98%

16.23

0.20%

15.13

7.27%

139.34

1.72%

211.17

-34.02%

6,986.77

16.27%

8,123.29 100.00%

Expenditures
Total Expenses reached P6,327.22 million, at least P985.05
million or 18.44% higher than last years P5,342.17 million
expenditures. This is largely due to higher Operating Expenses
brought about by increases in Repairs & Maintenance; Personal
Services due to the implementation of the 2nd tranche of
Salary Standardization III;, and Dredging costs. Likewise,
Non-Operating expense rose by 280.34 percent due to loss on
revaluation of loans. Foreign exchange revaluation registered
positive in 2009.

Net Income
PPAs Net Income amounted to P1,968 billion, 5.49 percent
lower than last years net income of P2,082 billion. PPA would
be left with a Net Income After Tax of P1.491 billion after
deducting income tax amounting to P476.54 million.

Collection Efficiency
Looking into the overall collection effort of the Authority, the
collection efficiency ratio (CER) for Prior Year accounts (PY) stood
at 87.55 percent where Receivables amounting to P858.80 million
at the beginning of the year, was reduced to P106.88 million with
actual amount collected reaching P751.92 million. This exceeded
the annual PY collection target of 60 percent. With regard to Current
Year (CY) accounts, the Authority projected 100 percent CER for
receivables of P7,420.63 million. However, a slight negative deviation
was posted with only P7,372.20 million actual collections for the
current year, or about P48.4369 million short of the target resulting to a
CER of 99.35 percent.

25

SUSTAINABILITY,
ENVIRONMENT AND PEOPLE

26

Port of Nasugbu

27

SUSTAINABILITY, ENVIRONMENT
AND PEOPLE
Manager Leopoldo C. Biscocho and Staff

Manager Winfred G. Elizalde with Staff

28

Port Safety, Security and Environmental Protection


Implementation of the International Ship and Port Facility Security
Code (ISPS)

Statement of Compliance of Port Facility


In addition to the 21 compliant ports, five (5) more PPA ports were
issued Statement of Compliance Issued to a Port Facility by the
Office for Transportation Security in 2010: Balanacan, Cagayan
de Oro, Iloilo, Lamao and Lucena. Efforts are underway for the
renewal of application of port with expired or expiring certificates
as of yearend.

Vessel Traffic Management System (VTMS)


The Vessel Traffic Management System (VTMS) Control
Center is a state-of-the-art vessel monitoring facility
managed and operated by PPA on a 24/7 basis. The
operation of VTMS focuses on giving round-the-clock
assistance as well as relaying information to pertinent
government agencies cases of vessel distress, accidents,
piracy and other incidents, for appropriate action. At
present, VTMS is installed at North Harbor, Corregidor in
Bataan and the port of Batangas.
In 2010, a total of 33,980 vessel voyages were monitored
from the VTMS Control Center in Bataan, of which
8,533 and 25,447 were foreign and domestic ships,
respectively. The Batangas Control Tower on the other
hand tracked a total of 30,764 vessels in 2010 with
29,508 domestic and 1,256 foreign vessels. Total vessels
monitored by the two Control Centers reached 64,744
broken down into 54,955 domestic and 9,789 foreign
ships.

Special Projects
MIS Computerization
The contractor for the PPA MIS Computerization Project
continues to resolve implementation issues as part of the
acceptance process of the computerized applications mainly
related to the Accounting and Financial Management System
(AFMS) applications developed for PPA. About 90 percent of
these applications have already been accepted and implemented
as of the end of 2010.

Manila North Harbor Modernization Project (MNHMP)


PPA is awaiting the submission of the conceptual master plan for Phase
I (Terminal 1) of North Harbor Modernization from MNHPI. This is expected
to be completed by April 2011. Upon approval, detailed engineering design
of the planned container terminal and tendering of bids will follow for Phase 1
covering Pier 14 up to the Marine Slipway. To restate, North Harbor was turned
over to MNHPI on April 11, 2010 after issues that were raised following the contract
award had been successfully addressed by the latter.

29

Quality Management System (QMS)

E-Ticketing

The Port Management Office of Batangas was chosen


as the pilot port for the launch and implementation of
the Quality Management System (QMS) which aims
to secure the issuance of ISO Certification for Vessel
Entrance and Clearance at the Port of Batangas. In
adherence to Executive Order No. 605 mandating the
institutionalization of the structure, mechanisms
and standards to implement a Government Quality
Management Program, the PPA Quality Policy was
crafted to consistently provide and continually improve
the quality of its port operations and services particularly
in one of PPAs widely employed procedure vessel
entrance and clearance - to satisfy the need of its clients
and comply with international and national statutory
and regulatory requirements. Since 2009, the QMS
Policy Procedure Manual for Batangas is already being
implemented.

The E-Ticketing System which is being spearheaded


by the DOTC is an Inter-Agency Committee (PPA, PCG,
MARINA, the Shipping Lines and other stakeholders in the
ports) is expected among others to (1) provide accurate
data/information and statistics on passengers (2) issue
E-Tickets only up to the vessels corresponding load
limits/maximum load capacity of passengers.

The second (2nd) Internal Audit was conducted last


Dec. 13-16, 2010 to verify closure of the previous nonconformities and observations raised during the 2009
Internal Audit and Opportunities for Improvements raised
during the Stage 1 Certification Audit. It is expected that
this would pave the way for the issuance of the ISO-QMS
certification to Batangas Port by early 2011.
Meanwhile, the same activities are also being replicated
at the ports of Cagayan de Oro, Davao, Gen. Santos, Iloilo,
Ozamiz and Zamboanga. Writeshops for the revision of
certain QMS-VEC Procedures were held in these ports
towards the end of the year.

Port Safety Health Environment Management


System (PSHEMS)
The PSHEM Code was developed by the GEF/UNDP/IMO
Regional Programme of Partnerships in Environmental
Management for the Seas of East Asia (PEMSEA),
in collaboration with the various international nongovernmental organizations representing the port industry.
The objective is to have a voluntary standard against which
ports can measure their performance with regard to quality
management, safety and health of port workers, and
protection of the environment.
The PSHEM Code specifies requirements for an effective
port safety, health and environmental management
system (PSHEMS) to enable an organization to develop
and implement policy and objectives that take into
account legal requirements and information about
hazards associated with its activities, which have or
can have significant risk or impact to safety, health and
environment.
In line with this, PPA adopted the System to enhance
maritime safety, protection of the marine environment,
and sustainable development in the country. It is
programmed to be initially implemented at the Port of
Iloilo. Initial Status Review of the PSHEMS Workshops/
Training was conducted by yearend. Writeshop
documentation and manual preparation is scheduled to
be conducted within the 1st quarter of 2011.

30

The E-Ticketing System, once in place, is expected to


provide sea travelling public with a safe, pleasurable and
hassle-free journey to their respective destinations.
As of year-end, consultation with shipping companies,
PCG and MARINA on the proposed implementation of
E-Ticketing was being conducted.
This system has been undergoing pilot implementation
at the Passenger Terminal Building 2 of Batangas port
since 2008 and will commence pilot testing at the
port of Calapan in 2011.

Internal Audit Program


In 2010, the Internal Control Department (ICD)
conducted six (6) Revenue Audits in various ports
nationwide, namely:
Revenue Audit, CY 2010
1. Ormoc Baseport (vessel charges)
2. PMO Ozamiz
3. Integrated Port Services of Ozamiz
4. TMO Balingoan
5. PMO General Santos
6. PMO Zamboanga
Meanwhile, audits conducted by the Internal Control
Services Staff of the respective PDOs/PMOs/TMOs/
LGUs during the year are as follows:
PDO Manila/Northern Luzon
1. Aurum Pacific Consolidated Inc.
2. Asian Terminals Inc.
3. Vitas Port Arrastre Corp.
4. LGU Basco
5. International Container Terminal Services Inc.
PDO Southern Luzon
1. Tabaco Port Cargo Corp.
PDO Visayas
1. PMO-Tagbilaran
2. Tagbilaran Maritime Services, Inc.
3. New Eagle Arrastre Services, Inc.
4. PMO-Dumaguete
5. PCBSI (Iloilo Wharf)
6. Ormoc (baseport)

A PPA GAD-Managed
Day Care Center

Port Terminal of Lucena

31

Operations Staff of PMO Cagayan de Oro


PDO Northern Mindanao
1. Iligan Merged Arrastre Services Co.
PDO Southern Mindanao
1. Sindangan Arrastre Brokerage Corp.
2. Liloy Cargo Handling Services, Corp.
3. PMO Davao
4. PMO Dapitan
5. PMO General Santos
6. PMO Zamboanga
7. Filipinas Port Services, Inc.
8. Davao Integrated Port Services Corp.
9. South Cotabato Integrated Port Services, Inc.
10. Zamboanga City Integrated Port Services, Inc.

As part of ensuring gender


responsiveness of PPA
policies and operational
processes, PPA also adopted
the Civil Service Commission
Guidelines on the Availment
of the Special Leave Benefits
for Women under RA 9710
(An Act Providing for the
Magna Carta of Women).

Conduct of Capacity-Building Activities


To foster better understanding and appreciation of GAD
values, issues and concerns, the PPA GAD Focal Point
facilitated the conduct of the following activities in
2010: (1) Participation in Womens Month, Environment
Month, Maritime Week and other GAD-related fora; (2)
Maintenance of GAD library, gallery/display room; (3)
Teambuilding; (4) Seminars on Responsible Parenthood,
Trafficking and Gender Laws, Time Management,
Womenomics and others; and (5) GAD Planning
Workshops.

Client-Focused Projects

Maintaining Corporate Stature

Collection of Data on Passengers and Port Workers

Community Support Program thru Gad-Focal Points

In 2010, ten (10) Responsibility Centers or RCs conducted


surveys to gather data on passengers and port users.
The data are necessary in facilitating a gender analysis
and identifying gender issues that need intervention. The
resultant output will be used as basis for formulating
programs/activities to improve the conditions of the
passengers and port users. Management has set aside
sufficient fund for this activity so that it can be replicated
by other PPA RCs which are similarly situated.

As part of its community support program, PPA implements


through its GAD Focal Points socially-directed initiatives
in support of the government program on Gender and
Development (GAD).

Organization-Focused Projects
Information and Data Bank Generation
To support the formulation of GAD-related polices, a
baseline sex-disaggregated database was started.
Personal and professional data of employees with
information on past livelihood training attended were
collected and an inventory of GAD facilities per terminal
was conducted to assess and determine the appropriate
intervention programs for gender concerns among PPA
employees. At the end of the year, this was 60 percent
complete.

Programs/Services for Employees


In 2010, PPA allotted some P23.76 million for genderresponsive programs and services specifically intended
for the well-being of its personnel. Among these were
counseling services and legal assistance to women
employees who are victims of domestic violence, shuttle
services, Child/Day Care Centers, establishment/
maintenance of GAD Center, forum/symposia on health
concerns, Family/Childrens Day and entrepreneurial/
livelihood skills training.

32

Provision of Gender-Sensitive Facilities/Services


for Port Users
In 2010, efforts have been undertaken for the provision of
gender-sensitive facilities/services for port users as follows:
a) Construction of womens desk, public assistance
and information booth, public address system, and
computer/communication station;
b) PTB amenities such as breastfeeding area, family
room, kids playing area, interfaith prayer room,
first-aid station, telephone booth priority lanes, safe
drinking water, wheelchairs, hand sanitizers and paper
towels;
c) Operation and maintenance of Half-way houses; and
d) Provision of separate cell for women offenders

GAD Information Drive for Port Users


To develop awareness of clients and travelers on available
port facilities/amenities for women, children and
disadvantaged groups, PPA through its GAD Focal Point
has endeavoured the production of informative materials
through networking with local and foreign agencies to
establish best practices on facilities; delivery of services

for women, children and disadvantaged groups; and


information campaign through fosters and film showing
at PTBs. For instance, the Forum on Magna Carta for
Women was conducted at the Port Terminal Building of
Nasipit and anti-trafficking posters and leaflets were
given to the passengers in Iloilo. A film entitled Ingat
sa Byahe was shown in Port Terminal Buildings in
Batangas and Lucena.

Gender Sensitivity Training for Port Workers


In 2010, sixteen (16) RCs conducted GST training which was
participated in by employees of cargo handling operators,
porterage companies and shipping companies and their
family members. GSTs among port workers aim to develop
their self-awareness and enhance their relationship with
others to deal with conflicts and to improve teamwork.

Conduct of Activities to Maintain and Preserve the


Environment
To enhance awareness on environmental issues and
concerns and their effects on men and women living in
port communities, PPA undertook in coordination with
LGUs and other government agencies the following: clean
and green projects such as tree planting and landscaping,
conduct of eco-waste management seminar, ports and
coastal clean-ups, and construction of material recovery
facility. Likewise, activities related to health concerns
of target beneficiaries in the marginal segment of the
port communities such as medical and dental mission,
feeding program, and blood pressure watch program
were conducted.

People Development Program


In 2010, the Human Resource Department has successfully
undertaken, in cooperation with various sponsoring
institutions a total of 46 courses which produced 2,909
graduates from Head Office and Field Offices. The courses
conducted focused on various subjects ranging from Port
Management and Operations; Seminar on Emergency and
Disaster Response; Port Safety; Integrated Port Operations;
Change Management/Corporate/Governance and Mgt. Ethics;
Seminar-Workshop on R.A. 9184; Quality Customer Relations;
Gender Sensitivity Training; and, Port Safety, Health and
Environment Mgt. System (PSHEMS), among others.
During the year, 19 PPA participants were recipients of
12 foreign scholarship/training grants in the following
countries: New Zealand, Japan, Cambodia, Malaysia,
Singapore, Vietnam and USA. Courses attended were
in the areas of: business management, strategic
maintenance of port structures, regional security
and development, port management and operations,
sustainable port development and planning, maritime
transport, global network terminal, mitigating impacts of
climate change in the port industry, port facility security
and maritime safety management.
Complementing the training programs for organic
personnel, the PPA through its training arm the PPA
Training Center or PPATC has completed the conduct of

25 courses focusing on port operations and benefiting 914


recipients.

Maintaining Global Ties


As a member, PPA lends its support to, among others,
various international maritime associations such as the
International Maritime Organization (IMO), Asia-Pacific
Economic Cooperation (APEC), ASEAN Port Authorities
(APA), and (Brunei-Indonesia-Malaysia-Philippines
East Asia Growth Association (BIMP-EAGA) by actively
participating with its counterparts in policy-making,
capacity building and dialogues on common endeavors
related to port facility standards/benchmarking, antiterrorism, anti-human trafficking, environmental
protection, port security and safety. In 2010, PPA officials
attended 12 meetings/conferences in Thailand, Malaysia,
Vietnam, Cambodia, Singapore, Japan and London to
tackle common endeavors and to keep abreast with
global maritime trends and developments.
1. ASEAN-GTZ Regional Inception Workshop held in
Bangkok, Thailand on January 21 22, 2010;
2. 19th ASEAN Maritime Transport Working Group
Meeting held in Kuala Lumpur, Malaysia on
April 20 22, 2010;
3. 104th Session of the International Maritime
Organization (IMO) held in London, United Kingdom
on 07 11 June 2010;
4. 2nd BIMP-EAGA Ports and Ships Security Officials
Meeting held in Tawau, Sabah, Malaysia on 22 25
June 2010;
5. ASEAN-GTZ Planning Workshop in connection with
the project Sustainable Port Development in the
ASEAN Region held in Ho Chi Minh City, Vietnam on
17 18 August 2010;
6. 31st ASEAN Ports Association Working Committee
Meeting held in Yangon, Myanmar on 20 -23
September 2010
7. 33rd APEC Transportation Working Group (TPT-WG33)
Meeting held in Tokyo, Japan on 10 15 October 2010;
8. Regional Expert Group Meeting on the Development
of Dry Ports along the Asian Highway and TransAsian Railway Networks held in Bangkok, Thailand on
01 03 November 2010;
9. 105th Session of the International Maritime (IMO)
Council held in London on 01 05 November 2010;
10. Better Air Quality (BAQ) Conference in connection
with the ASEAN-GTZ Project Sustainable Port
Development in the ASEAN Region held in Singapore
on 09 11 November 2010; and
11.88th Session of the Maritime Safety Committee be held
in London on 24 November to 03 December 2010.
12.36th ASEAN Ports Association Meeting held in Siem
Reap, Cambodia on 8 11 December 2010;

33

2010 PPA PERFORMANCE


AT A GLANCE
CARGO THROUGHPUT
166.40 MILLION METRIC TONS

UP BY 16.5 MILLION METRIC TONS OR


11% FROM 2009

CONTAINER TRAFFIC

4.50 MILLION TEUs

UP BY 0.49 MILLION OR 12% FROM 2009

PASSENGER TRAFFIC

52.70 MILLION

34

UP BY 8.82 MILLION OR 20% FROM 2009

SHIP TRAFFIC or VESSEL CALLS

346,000
UP BY 10% FROM 2009

GROSS INCOME

P8.295 BILLION
UP BY 16.36% FROM 2009

EXPENSES

P6.33 BILLION
UP BY 12.23% FROM 2009

NET INCOME

P1.491 BILLION
DOWN BY 7.5% FROM 2009

ENGINEERING
40 LOCALLY FUNDED PROJECTS
COMPLETED VALUED AT P1.74 BILLION
26 R&M PROJECTS COMPLETED VALUED AT
P760.73 MILLION

35

Completed Locally Funded Projects


Head Office & Field Office-implemented
(For the Year 2010)
Port/Location
PDO MANILA/NORTHERN LUZON
PMO Limay
1
Orion Port, Bataan
2
Orion Port, Bataan
3
Sasmuan, Pampanga
PMO North Harbor
4
Slip 0, North Harbor
PMO South Harbor
5
South Harbor
6
South Harbor (GAD Project)

Implementing
Office

Project Description

Date Started

Completion

Project Cost

FO
FO
FO

Constuction of Power Transformer Pedestal


Improvement of PTB
Construction of Wharf

Dec 28 2009
May 7 2010
Jun 24 2010

Jan 15 2010
Jun 20 2010
Oct 15 2010

248,579.10
11,251,482.62
8,389,619.55

FO

Roadway

Nov 6 2009

May 16 2010

9,137,192.56

FO
FO

Nov 17 2009
Apr 19 2010

Jul 30 2010
Jun 17 2010

PDO SOUTHERN LUZON


PMO-Batangas
7
Cotta Port, Lucena City
8
Lucena Port, Quezon
9
Poctoy Port, Odiongan, Romblon

Upgrading of Port Police Firing Range


Improvements of PPA Educational & Sports Complex
Sub-Total PDO Manila/Northern Luzon

13,960,371.59
4,391,731.00
47,378,976.42

FO
HO
HO

Mar 26 2010
Oct 12 2009
Jul 24 2007

Dec 15 2010
Oct 15 2010
Feb 16 2010

18,675,870.81
54,598,511.83
84,553,040.93

10
11
12

FO
FO
FO

Port Development Project


Port Expansion Project (Construction of Back-up Area)
Port Expansion Project (Back-up Area, Mooring & Fendering System,
Drainage System, Port Lighting System)
Concreting of Rock Causeway & Construction of Back-up Area
Widening of Rock Causeway
Rehabilitation/Improvement of Slope Protection Structure; provision
of Deflector Wall; Concreting of Back-up Area, Disposal of underwater
obstruction

May 9 2010
Aug 3 2010
May 31 2010

Apr 9 2010
May 10 2010
Aug 14 2010

9,594,630.17
19,826,161.82
45,049,083.37

Mulanay Port, Quezon


Nasugbu Port, Batangas
Nasugbu Port, Batangas

FO
FO

Provision of Additional Ticketing Booth & Public Comfort Room


Expansion of Back-up Area

Apr 8 2010
Apr 8 2010

Jun 27 2010
Jul 22 2010

1,887,380.01
19,065,000.00

15
16

PMO-Calapan
Calapan, Oriental Mindoro
Roxas Port, Oriental Mindoro
PMO Legazpi
Legazpi Port, Albay
Cataingan Port, Masbate

FO
HO

Dec 7 2009
Mar 5 2010

Apr 15 2010
Dec 29 2010

20,591,971.00
32,454,478.49

17

Caramoan Port, Camarines Sur

HO

18
19
20
21
22

Esperanza Port, Masbate


Pasacao Port, Camarines Sur
Pio Duran Port, Albay
Sorsogon Port, Sorsogon
Tandoc Port, Siruma, Cam. Sur.
PMO Puerto Princesa
Puerto Princesa Port, Palawan

HO
HO
HO
HO
HO

Concreting of Back-up Area & installation of Port Lighting System


Port Improvement Project (Demolition Work, Construction of RoRo Ramp
& RC Platform)
Port Expansion Project (RC Platform, RoRo Ramp, Breasting Dolphin,
Back-up Area, Port Lighting System)
Port Improvement & Rehabilitation
Construction of RC Pier Extension
Port Development Project (Rock Causeway, Port Lighting System)
Port Improvement Project (Construction of Rock Bulkhead)
Port Development Project (RoRo Ramp & Rock Causeway)

13
14

23

Jul 26 2007

Mar 25 2010

63,431,898.43

Apr 29 2010
Sept 1 2009
Sept 15 2009
Apr 9 2010
Mar 19 2009

Sept 28 2010
Feb 25 2010
Jul 5 2010
Jun 7 2010
Jan 12 2010

20,091,821.26
23,063,787.33
59,290,907.03
25,330,853.29
51,349,323.13

FO

Concrete paving of back-up area with drainage system


Sub-Total PDO Southern Luzon

Jan 17 2010

Aug 14 2010

17,569,239.14
566,423,958.04

FO
FO

Jun 18 2009
Dec 28 2009

Jan 18 2010
May 17 2010

47,734,547.33
9,221,645.30

PMO Dumaguete
Dumaguete Port, Negros Occ.

Port Construction, Phase II


Additional development/Improvement of Perimeter Fence & Perimeter
Lightings

HO

Jun 17 2008

Feb 25 2010

430,753,591.28

Nov 06 2007

Feb 3 2010

52,188,064.93

28
29

Dumaguete Port
PMO Tacloban
Catbalogan Port, Western Samar
Tacloban Port, Leyte

Port Expansion Project, Phase II (Excavation/ Disposal, Reclamation,


Mooring & Fendering System, Drainage & Fencing, Port Lighting System)
Passenger Terminal Building

HO
FO

Feb 4 2010
Feb 11 2010

Jul 3 2010
Jul 15 2010

35,827,466.13
576,423.68

30

PMO Tagbilaran
Catagbacan Port, Bohol

Rehabilitation Project (Rehabilitation Works)


Three Phase Primary Line & Installation of Transformer for PMO
Operations Bldg.

HO

31

Talibon Port, Bohol

HO

32

Ubay Port, Poblacion, Bohol

HO

33

Ubay Port, Poblacion, Bohol

HO

Cruise Ship Berth (Rehabilitation, Widening & Extension of RC Pier w/


Breasting Dolphin)
Improvement Project (Parking, Basement & Back-up Area, Port Lighting
System)
Port Expansion Project, Phase I (Construction of Back-up Area; RC Pier;
RoRo Ramp; Dredging & Disposal Work; Mooring & Fendering System;
Provisional item; Port Lighting System)
Port Expansion Project, Phase II (Construction of Back-up Area of about
17,574 sq.m. including Rock Bulkhead, Fill Materials & RC Curb)
Sub-Total PDO Visayas

PDO VISAYAS
PMO Pulupandan
24
Himamaylan Port, Negros Occ.
25
Danao Port, Escalante City, Negros Occ.
26
27

PDO NORTHERN MINDANAO


PMO Cagayan de Oro
34
Cagayan de Oro Port
PMO Nasipit
35
Masao Port, Agusan del Norte
PMO Surigao
36
Surigao Port, Surigao del Norte
37
Surigao Port, Surigao del Norte
PDO SOUTHERN MINDANAO
PMO General Santos
38
Gen. Santos Port, Makar Wharf
39
Gen. Santos Port, South Cot.
40
Mabila Port, Saranggani
Sub-Total PDO Southern Mindanao
GRAND TOTAL 2010

36

FO

Apr 8 2009

May 21 2010

71,726,919.13

Feb 4 2010

Dec 29 2010

38,812,368.45

Mar 20 2008

Mar 9 2010

233,048,645.73

Nov 16 2009

Jul 26 2010

138,681,967.42
1,058,571,639.38

FO

Passengers Shed (Covered Walkway)

Feb 20 2010

Aug 20 2010

4,651,514.93

FO

Rehabilitation of Lighting System

Dec 2 2009

Jan 21 2010

985,101.04

FO
FO

Construction of Port Managers Quarter


Construction of Gate & Guardhouse
Sub-Total PDO Northern Mindanao

Aug 27 2010
Dec 18 2009

Nov 18 2010
Mar 12 2010

4,462,882.39
3,009,579.19
13,109,077.55

FO
HO

Security Fence at Newly Constructed Wharf


Paving of the Newly Constructed Back-up Area; Paving of the Newly
Reclaimed Area
Concreting of Rock Causeway

Jan 28 2010
Sept 3 2009

Sept 4 2010
Dec 10 2010

2,278,391.19
51,761,487.91

Nov 21 2009

Jun 15 2010

5,072,932.80
59,112,811.90
1,744,596,463.29

FO

philippine ports
authority

annual
re p o r t

Ongoing Locally Funded


Projects For 2010 (Carry-Over & New Projects)
Head Office & Field Office-implemented
As of 2010 Year End, in pesos
Port/Location
PDO MANILA/NORTHERN LUZON
PMO Limay
1
Dingalan Port, Aurora
PMO San Fernando
2
Sual Port, Pangasinan
3
Casiguran Port, Aurora
PMO South Harbor
4
South Harbor, Manila
Sub-Total PDO Manila/Northern Luzon
PDO SOUTHERN LUZON
PMO Batangas
5
Bauan Port, Batangas
6
Poctoy Port, Odiongan, Romblon

Implementing
Office

16,279,475.05

Ongoing-42.82%

HO
HO

Port Development Project (RoRo Ramp on-fill & Rock Causeway)


Development of Back-up Area

Feb 12 2010
Nov 16 2010

Feb 6 2011
Nov 10 2011

80,352,839.67
36,458,949.78

Suspended
Ongoing-5.05%

HO

Upgrading of Existing Breakwater, South Side (Phase II)

Sept 3 2009

Feb 24 2011

265,629,689.00
398,720,953.50

Ongoing-87.95%

HO
HO

Construction of RC Pier
Port Expansion Project, Phase II (RoRo Ramp & Breasting
Dolphin, Reclamation)
Port Improvement Project (RoRo Ramp, Breasting Dolphin & RC
Platform)
Port Improvement Project (RC Pier, RoRo Ramp & Breasting
Dolphn; Rock Causeway & Back-up Area; Port Lighting System)
Phase 2-RC Pier, RORO Ramp & Breasting Dolphin; Rock
Causeway & Port Lighting System
RC Pier, RoRo Ramp & RC Wharf; Back-up Area & Rock
Causeway, Port Lighting System)
Improvement Project (RoRo Ramp & Breasting Dolphin,
Back-up Area, PTB)

May 13 2010
Nov 20 2009

June 8 2011
May 1 2011

25,942,235.16
40,850,532.46

Ongoing-79.84%
Ongoing-91.01%

Mar 4 2010

Apr 10 2011

32,797,551.71

Ongoing-59.96%

Dec 31 2007

Jul 9 2010

78,375,102.06

May 19 2010

Oct 14 2011

148,336,887.36

Terminated99.20%
Under Procurement
Ongoing-54.56%

Apr 30 2010

Apr 24 2011

48,639,199.66

Ongoing-89.98%

Oct 15 2009

Mar 18 2011

75,322,879.61

Ongoing-85.08%

HO
FO
FO
FO

Port Expansion Project (Back-up Area, Widening & Access Road,


Port Lighting System)
Port Development Project, Phase II (RoRo Ramp; Rock Causeway)
Provision of Covered Walk
Provision of Covered Walk
Provision of X-Ray Facilities

Mar 25 2010
Nov 22 2010
Nov 22 2010
Nov 22 2010

May 1 2011
Mar 21 2011
Dec 29 2010
Jan 21 2011

70,838,651.52
2,751,347.00
689,200.00
1,316,494.00

Ongoing-60.47%
Ongoing-86.82%
Ongoing-95.00%
Ongoing-95.00%

HO
FO

Upgrading & Rehabilitation of Port (RC Wharf, Back-up Area)


Construction of Roro ramp & R.C. platform

Oct 20 2009
Dec 22 2010

Feb 25 2011
Jun 21 2011

91,114,815.00
12,496,136.43
629,471,031.97

Ongoing-88.32%
Ongoing

FO

Additional Improvement of Basiao Port

Nov 19 2010

Aug 15 2011

28,575,426.21

Ongoing-54.73%

FO

Widening of Causeway & Reclamation

May 24 2010

May 16 2011

48,634,407.74

Ongoing-94.70%

FO

Port Development

May 24 2010

Mar 16 2011

8,839,158.67

Ongoing-93.29%

FO

Port Development

May 24 2010

Aug 17 2011

27,510,910.36
113,559,902.98

Ongoing-69.90%

FO
HO

Port Improvement
Improvement Project (RC Wharf Extension, Relieving
Platform, Back-up Area)

Feb 20 2010
Apr 13 2010

Apr 20 2011
Oct 4 2011

27,042,882.62
187,898,070.18

Ongoing-63.98%
Ongoing-52.40%

FO

Construction of Transit Shed

Dec 19 2009

Dec 9 2010

21,890,358.26

Ongoing-94.33%

HO

Port Expansion Project (Back-up Area, Port Lighting System)

Nov 24 2009

Jun 15 2011

150,033,820.63

Ongoing-46.61%

FO

Improvement of port facilities/Concrete causeway

May 26 2010

15,408,298.60
402,273,430.29

Suspended

FO

Port Development (Construction of RoRo Ramp & Rock


Causeway)
Port Development (Construction of RoRo Ramp,
RC Wharf & Rock Causeway)

Dec 4 2009

Nov 21 2011

29,760,654.89

Ongoing-8.50%

Dec 8 2009

Aug 11 2011

37,797,602.52

Ongoing-53.68%

San Andres Port, Quezon

HO

San Andres Port, Quezon

HO

10

San Jose Port, Batangas

HO

11

San Juan Port, Batangas

HO

12

PMO Calapan
Abra de Ilog Port, Occ. Min.

HO

29
30
31
32
33

Tagpopongan Port, Samal,


Davao del Norte
PMO Dapitan
Dapitan Port, Zambo. del Norte

PMO General Santos


General Santos Port, Makar Wharf
Glan Port, Sarangani Province
PMO Zamboanga
Zamboanga Port, Zamboanga del Sur

34
Zamboanga Port, Zamboanga del Sur
Sub-Total PDO Southern Mindanao
Grand Total

Status

Apr 11 2011

PMO Nasipit
Masao Port, Agusan del Norte
PMO Ozamis
26
Ozamiz Port, Ozamis City
PMO Surigao
27
Sta. Monica Port, Surigao del Norte
Sub-Total PDO Northern Mindanao
PDO SOUTHERN MINDANAO
PMO Davao
28
Pantukan Port, Compostela Valley

Project Cost

Oct 14 2010

HO

25

Completion

Rehabilitation of Rock Causeway

Mauban Port, Quezon

Bulalacao Port, Oriental Min.


Calapan, Oriental Mindoro
Roxas Port, Oriental Mindoro
Roxas Port, Oriental Mindoro
PMO Legazpi
17
Pantao Port, Albay
18
Pio Duran Port, Albay
Sub-Total PDO Southern Luzon
PDO VISAYAS
PMO Iloilo
19
Basiao Port, Ivisan, Capiz
PMO Ormoc
20
Hilongos Port, Southern Leyte
PMO Tacloban
21
Babatngon, Leyte
PMO Tagbilaran
22
Loay River Quay, Bohol
Sub-Total PDO Visayas
PDO NORTHERN MINDANAO
PMO Cagayan de Oro
23
Balbagon Port, Mambajao, Cam.
24
Cagayan de Oro Port, CDO

Date Started

FO

13
14
15
16

Project Description

FO
HO

Passenger Terminal & Operations Building-Construction


of two-storey building with Roof Deck

FO
FO

Construction of Waste Water Treatment Plant


Port Improvement

Mar 5 2010

Aug 2 2010

12,079,691.35
26,042,032.32

Ongoing-95.05%
Ongoing-11.20%

FO

Concreting of Damaged Paving Blocks at Marshalling Yard &


Rehabilitation of Drainage System
Construction of Fence and ISPS Delineation Area

Mar 11 2010

Mar 8 2011

23,053,297.01

Ongoing-97.44%

Mar 2 2010

Dec 22 2010

6,762,863.00
135,496,141.09
1,679,521,459.83

Ongoing-96.26%

FO

Under Procurement

37

Cargo Throughput (in m.t.)


By Port District/Port Management Office
At Berth/Anchorage
PDO/PMO

GRAND TOTAL

2010
DOMESTIC

FOREIGN

GRAND TOTAL

2009
DOMESTIC

FOREIGN

PDO MNL/NORTHERN LUZON


Manila - N. Harbor
Manila - S. Harbor
- M.I.C.T.
Limay
San Fernando

70,316,061
16,146,329
12,958,525
18,266,554
16,314,686
6,629,967

24,861,197
11,929,164
5,374,364
913,378
6,274,691
369,600

45,454,864
4,217,165
7,584,161
17,353,176
10,039,995
6,260,367

61,687,825
17,406,085
10,734,949
15,639,479
14,670,054
3,237,258

26,667,432
14,183,402
5,385,457
822,314
5,929,723
346,536

35,020,393
3,222,683
5,349,492
14,817,165
8,740,331
2,890,722

PDO SOUTHERN LUZON


Batangas
Calapan
Legazpi
Puerto Princesa

26,882,615
18,724,059
1,558,560
2,230,180
4,369,816

10,614,469
6,175,429
1,558,560
1,482,714
1,397,766

16,268,146
12,548,630
0
747,466
2,972,050

29,820,142
20,807,830
1,279,234
4,210,246
3,522,832

13,328,832
7,032,623
1,279,234
3,712,950
1,304,025

16,491,310
13,775,207
0
497,296
2,218,807

PDO VISAYAS
Dumaguete
Iloilo
Ormoc
Pulupandan
Tacloban
Tagbilaran

23,768,003
1,919,351
7,724,638
4,368,848
6,045,063
1,688,880
2,021,223

16,030,126
1,696,120
3,376,511
2,276,490
5,675,037
1,328,378
1,677,590

7,737,877
223,231
4,348,127
2,092,358
370,026
360,502
343,633

20,771,261
1,676,118
5,757,577
3,949,240
6,267,092
1,346,944
1,774,290

15,301,624
1,517,029
3,191,403
2,104,973
5,815,762
1,184,671
1,487,786

5,469,637
159,089
2,566,174
1,844,267
451,330
162,273
286,504

PDO NORTHERN MINDANAO


Cagayan de Oro
Iligan
Nasipit
Ozamiz
Surigao

28,823,840
6,229,040
2,493,573
2,466,396
1,022,834
16,611,997

9,751,271
5,028,157
1,569,548
1,599,869
916,300
637,397

19,072,569
1,200,883
924,025
866,527
106,534
15,974,600

22,823,025
5,698,752
2,446,272
2,818,802
865,597
10,993,602

8,702,033
4,186,894
1,679,738
1,449,656
834,954
550,791

14,120,992
1,511,858
766,534
1,369,146
30,643
10,442,811

PDO SOUTHERN MINDANAO


Cotabato
Dapitan
Davao
General Santos
Zamboanga
TOTAL

16,605,161
56,544
617,480
10,624,929
2,668,433
2,637,775
166,395,680

8,539,837
56,544
413,477
4,120,627
1,580,445
2,368,744
69,796,900

8,065,324
0
204,003
6,504,302
1,087,988
269,031
96,598,780

14,792,801
70,036
585,120
9,299,841
2,520,255
2,317,549
149,895,054

7,936,498
70,036
415,651
3,813,631
1,454,737
2,182,443
71,936,419

6,856,303
0
169,469
5,486,210
1,065,518
135,106
77,958,635

38

philippine ports
authority

annual
re p o r t

Passenger Traffic

By Port District/Port Management Office


At Berth/Anchorage
PDO/PMO
PDO MNL/NORTHERN LUZON
Manila - N. Harbor
Manila - S. Harbor
- M.I.C.T.
Limay
San Fernando

GRAND TOTAL

DISEMBARKED

2010
EMBARKED

GRAND TOTAL

DISEMBARKED

2009
EMBARKED

1,863,037
821,983
1,004,780
0
36,254
20

913,921
375,750
522,028
0
16,129
14

949,116
446,233
482,752
0
20,125
6

1,938,251
821,565
1,116,662
0
24
0

1,003,890
420,222
583,644
0
24
0

934,361
401,343
533,018
0
0
0

16,513,171

8,357,922

8,155,249

12,634,440

5,980,585

6,653,855

6,826,589
5,604,719
3,800,785
281,078

3,543,981
2,808,733
1,863,689
141,519

3,282,608
2,795,986
1,937,096
139,559

5,187,821
4,268,677
2,835,355
342,587

2,270,312
2,125,982
1,422,150
162,141

2,917,509
2,142,695
1,413,205
180,446

PDO VISAYAS
Dumaguete
Iloilo
Ormoc
Pulupandan
Tacloban
Tagbilaran

17,688,740
3,207,250
2,585,835
2,315,381
3,270,403
2,511,202
3,798,669

9,001,991
1,649,272
1,293,915
1,164,399
1,649,690
1,276,006
1,968,709

8,686,749
1,557,978
1,291,920
1,150,982
1,620,713
1,235,196
1,829,960

15,416,793
2,867,827
2,276,740
2,049,001
2,935,436
1,814,376
3,473,413

7,750,136
1,472,288
1,121,538
1,031,080
1,460,020
908,252
1,756,958

7,666,657
1,395,539
1,155,202
1,017,921
1,475,416
906,124
1,716,455

PDO NORTHERN MINDANAO


Cagayan de Oro
Iligan
Nasipit
Ozamiz
Surigao

10,576,589
2,178,430
3,301,809
315,284
3,468,781
1,312,285

5,527,332
1,098,723
1,855,614
172,175
1,702,946
697,874

5,049,257
1,079,707
1,446,195
143,109
1,765,835
614,411

8,150,251
1,663,946
2,276,667
281,626
2,798,180
1,129,832

4,111,714
842,037
1,062,302
139,951
1,476,152
591,272

4,038,537
821,909
1,214,365
141,675
1,322,028
538,560

PDO SOUTHERN MINDANAO


Cotabato
Dapitan
Davao
General Santos
Zamboanga
TOTAL

6,060,108
57
584,519
1,329,277
108,285
4,037,970
52,701,645

3,049,838
36
307,751
674,660
51,612
2,015,779
26,851,004

3,010,270
21
276,768
654,617
56,673
2,022,191
25,850,641

5,732,830
1,216
498,887
1,571,942
114,106
3,546,679
43,872,565

2,877,354
387
265,152
803,674
54,032
1,754,109
21,723,679

2,855,476
829
233,735
768,268
60,074
1,792,570
22,148,886

PDO SOUTHERN LUZON


Batangas
Calapan
Legazpi
Puerto Princesa

39

Number of Shipcalls

By Port District/Port Management Office


At Berth/Anchorage
PDO/PMO

GRAND TOTAL

2010
DOMESTIC

FOREIGN

GRAND TOTAL

2009
DOMESTIC

FOREIGN

PDO MNL/NORTHERN LUZON


Manila - N. Harbor
Manila - S. Harbor
- M.I.C.T.
Limay
San Fernando

23,093
4,967
7,810
1,942
7,474
900

17,645
4,436
5,709
103
6,939
458

5,448
531
2,101
1,839
535
442

22,341
5,043
7,650
2,042
6,924
682

17,368
4,602
5,822
105
6,435
404

4,973
441
1,828
1,937
489
278

PDO SOUTHERN LUZON


Batangas
Calapan
Legazpi
Puerto Princesa

96,853
43,990
22,800
23,814
6,249

95,321
42,922
22,800
23,706
5,893

1,532
1,068
0
108
356

88,168
40,331
22,122
20,617
5,098

86,806
39,264
22,122
20,547
4,873

1,362
1,067
0
70
225

132,904
37,019
22,751
13,313
25,962
10,854
23,005

132,250
36,962
22,534
13,140
25,883
10,745
22,986

654
57
217
173
79
109
19

117,195
34,937
19,266
12,082
24,009
8,422
18,479

116,697
34,892
19,140
11,900
23,938
8,364
18,463

498
45
126
182
71
58
16

PDO NORTHERN MINDANAO


Cagayan de Oro
Iligan
Nasipit
Ozamiz
Surigao

53,189
14,868
14,305
1,083
13,809
9,124

52,354
14,551
14,180
1,063
13,781
8,779

835
317
125
20
28
345

48,875
12,542
14,296
1,103
13,659
7,275

48,123
12,175
14,186
1,076
13,650
7,036

752
367
110
27
9
239

PDO SOUTHERN MINDANAO


Cotabato
Dapitan
Davao
General Santos
Zamboanga
TOTAL

39,961
272
3,201
20,741
1,464
14,283
346,000

37,632
272
3,166
18,908
1,127
14,159
335,202

2,329
0
35
1,833
337
124
10,798

37,840
461
2,640
22,234
1,504
11,001
314,419

35,647
461
2,617
20,546
1,107
10,916
304,641

2,193
0
23
1,688
397
85
9,778

PDO VISAYAS
Dumaguete
Iloilo
Ormoc
Pulupandan
Tacloban
Tagbilaran

40

philippine ports
authority

annual
re p o r t

Number of Containers Handled (in T.E.U.)


By Port District/Port Management Office
At Berth/Anchorage
PDO/PMO
PDO MNL/NORTHERN LUZON
Manila - N. Harbor
Manila - S. Harbor
- M.I.C.T.
Limay
San Fernando

GRAND TOTAL

2010
DOMESTIC

GRAND TOTAL

FOREIGN

2009
DOMESTIC

FOREIGN

3,158,023
553,548
988,268
1,612,886
3,321
0

747,649
553,548
101,764
89,542
2,795
0

2,410,374
0
886,504
1,523,344
526
0

2,877,638
638,263
838,950
1,397,594
2,831
0

810,118
638,263
86,608
82,932
2,315
0

2,067,520
0
752,342
1,314,662
516
0

PDO SOUTHERN LUZON

38,182

37,091

1091

18,946

18,749

197

Batangas
Calapan
Legazpi
Puerto Princesa

5,737
0
740
31,705

4,646
0
740
31,705

1091
0
0
0

1,649
0
1
17,296

1,452
0
1
17,296

197
0
0
0

PDO VISAYAS
Dumaguete
Iloilo
Ormoc
Pulupandan
Tacloban
Tagbilaran

246,873
20,453
99,374
7,416
92,709
15,788
11,133

246,873
20,453
99,374
7,416
92,709
15,788
11,133

0
0
0
0
0
0
0

238,492
21,188
90,850
6,721
96,013
13,258
10,462

238,492
21,188
90,850
6,721
96,013
13,258
10,462

0
0
0
0
0
0
0

PDO NORTHERN MINDANAO


Cagayan de Oro
Iligan
Nasipit
Ozamiz
Surigao

256,379
170,975
21,940
34,250
27,687
1,527

236,648
151,244
21,940
34,250
27,687
1,527

19,731
19,731
0
0
0
0

222,786
149,189
15,380
29,804
26,531
1,882

193,461
119,864
15,380
29,804
26,531
1,882

29,325
29,325
0
0
0
0

PDO SOUTHERN MINDANAO


Cotabato
Dapitan
Davao
General Santos
Zamboanga
TOTAL

798,177
0
6,156
584,669
140,027
67,325
4,497,634

371,598
0
6,156
212,129
85,988
67,325
1,639,859

426,579
0
0
372,540
54,039
0
2,857,775

653,669
0
6,292
453,348
130,907
63,122
4,011,531

332,219
0
6,292
181,227
81,578
63,122
1,593,039

321,450
0
0
272,121
49,329
0
2,418,492

41

Republic of the Philippines


COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

Independent Auditors Report


The Board of Directors
Philippine Ports Authority
Bonifacio Drive
Port Area, Manila
Report on the Financial Statements
We have audited the accompanying financial statements of the Philippine Ports Authority (PPA), which comprise the statement of
financial position as at December 31, 2010, and the statement of comprehensive income, statement of changes in equity and statement
of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with state accounting
principles generally accepted in the Philippines, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
Expenditures incurred for major repairs and maintenance and for acquisition of certain items of property and equipment amounting to
P49.56 million and P2.4 million, respectively, were not capitalized but were instead recognized in profit or loss for the period, while the
loss of P17.02 million incurred in the derecognition of certain items of property and equipment was not recognized in profit or loss for
the period. The accounting treatment for the above-mentioned transactions and events is contrary to Philippine Accounting Standard
No. 16 on Property, Plant and Equipment (PPE) and resulted in the understatement of PPE by P51.96 million, net overstatement
of expenses by P51.96 million and understatement of loss on derecognition of property and equipment by P17.02 million or net
understatement of income of P34.94 million.
The validity of recorded liabilities in the total amount of P21.27 million is doubtful as these are not properly supported with
documents.

42

philippine ports
authority

annual
re p o r t

Qualified Opinion
In our opinion, except for the effects and the possible effects on the financial statements of the matters described in the Basis for
Qualified Opinion paragraphs, the financial statements present fairly, in all material respects, the financial position of the Philippine
Ports Authority as at December 31, 2010, and of its financial performance and its cash flows for the year then ended in accordance with
state accounting principles generally accepted in the Philippines.
Emphasis of Matter
We draw attention to Note 49 to the financial statements which describes the uncertainty related to the outcome of the various
lawsuits involving the Authority.
Other Matter
As part of our audit of the 2009 financial statements, we also audited the adjustment described in Notes 9 and 27 that were applied to
amend the 2009 financial statements. In our opinion, such adjustments are appropriate and have been properly applied.
Report on the Supplementary Information Required Under Revenue Regulations 15-2010
Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary
information on taxes, duties and license fees in Note 48 to the financial statements is presented for purposes of filing with the Bureau
of Internal Revenue and is not a required part of the basic financial statements. Such information is the responsibility of management.
The information has been subjected to the auditing procedures applied in our audit of the basic financial statements. In our opinion,
the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
COMMISSION ON AUDIT

DIARALCASAN B. IBRAHIM
Supervising Auditor

June 29, 2011

43

Statement of Financial Position

December 31, 2010


(With Comparative Figures as of December 31, 2009)
(In Philippine Peso)

Notes
ASSETS
Current Assets
Cash on Hand and in Banks
Receivables - Net
Inventories
Prepayments
Other Current Assets
Total Current Assets

2010

As Restated
2009

6
7
8
9
10

2,602,511,853
1,048,221,739
128,314,048
449,528,860
72,838,471
4,301,414,971

2,631,730,631
1,045,491,495
130,483,931
414,884,987
205,338,127
4,427,929,171

11
12
13
14

87,521,901,017
2,173,209,147
835,924,367
380,378,832
90,911,413,363

86,616,988,316
916,048,743
548,409,944
1,220,069,271
89,301,516,274

95,212,828,334

93,729,445,445

15
16
17
18

2,982,448,396
601,145,599
788,167,167
549,987,846
4,921,749,008

2,327,034,294
1,802,518,940
728,292,112
362,343,557
5,220,188,903

Non-Current Liabilities
Loans Payable - Foreign
Loans Payable - Domestic
Corporate Notes
Retirement Payable
Total Non-Current Liabilities

19
20
21
22

8,297,850,502
500,000,000
2,000,000,000
430,497,299
11,228,347,801

8,554,895,762
500,000,000
2,000,000,000
379,426,612
11,434,322,374

Deferred Credits

23

113,032,871

145,904,150

78,949,698,654

76,929,030,018

95,212,828,334

93,729,445,445

Non-Current Assets
Property and Equipment - Net
Investments in Securities
Notes Sinking Fund
Other Non-Current Assets
Total Non-Current Assets

LIABILITIES AND EQUITY


Current Liabilities
Accounts Payable
Payables to Other Government Agencies
Current Portion of Foreign Loans Payable
Other Current Liabilities
Total Current Liabilities

Equity

See accompanying Notes to Financial Statements.

44

philippine ports
authority

annual
re p o r t

Statement of Comprehensive Income


For the Year Ended December 31, 2010
(With Comparative Figures as of December 31, 2009)
(In Philippine Peso)

Notes
REVENUES
ICTSI Fees
Wharfage Dues
Share in Arrastre/Stevedoring Income
Dockage Fees
Port Dues
Storage Charges
Port Usage Fees
Terminal Fees
Vessel Traffic Management Service Fees
Pilotage
Lay-Up Fees
Other Income

2010

As Restated
2009

NET INCOME BEFORE INCOME TAX


INCOME TAX EXPENSE
NET PROFIT

46

1,242,469,260
3,597,940,082
4,840,409,342
2,128,901,357

172,321,940
16,952,837
(533,373,996)
(491,460,392)
141,073

142,350,268
17,449,706
295,763,460
(501,761,120)
(46,197,686)

1,968,407,059

42
43
44
45

1,313,540,451
3,988,847,768

(835,418,538)

OTHER INCOME/(EXPENSES)
Fund Management Income
Other General Income
Foreign Exchange Gain(Loss) on Revaluation
Financial Expenses
Gain on Sale of Disposed Assets

6,969,310,699

2,803,825,597

PROFIT FROM OPERATIONS

2,526,887,668
1,394,003,399
1,230,974,879
443,338,689
347,506,688
200,501,075
239,813,135
211,168,990
15,130,260
23,339,822
1,907,294
334,738,800

5,302,388,219

40
41

2,760,143,493
1,671,023,309
1,601,639,218
521,291,362
383,871,349
289,422,380
273,473,539
139,336,910
16,234,724
31,065,731
12,297,495
406,414,307
8,106,213,816

OPERATING EXPENSES
Personal Services
Maintenance and Other Operating Expenses

28
29
30
31
32
33
34
35
36
37
38
39

2,082,703,671

476,543,671

469,866,369

1,491,863,388

1,612,837,302

See accompanying Notes to Financial Statements.

45

Statement of Changes in Equity

For the Year Ended December 31, 2010


(With Comparative Figures as of December 31, 2009)
(In Philippine Peso)
Notes
CAPITAL CONTRIBUTION
National Government Contribution
Balance at Beginning of Year
Derecognition of Land (Batalay- Legaspi)
Balance at End of Year

24

Donated Surplus
Balance at Beginning of Year
Donations Received from Mindanao
Development Authority
Donations Received from LGU and
Other Entities

As Restated
2009

2010

25

4,312,337,376
4,312,337,376

4,312,418,376
(81,000)
4,312,337,376

845,327,671

845,077,671

95,960

250,000

845,423,631

APPRAISAL SURPLUS
Balance at Beginning of Year
Adjustments in Assets Appraised Values
Balance at End of Year

57,623,437,073
12,105,824
57,635,542,897

14,135,822,074
529,359,688
1,491,863,388
16,157,045,150

14,033,813,395
212,115,749
1,612,837,302
(200,000,000)
(1,522,944,372)
14,135,822,074

78,949,698,654

76,929,030,018

26

RETAINED EARNINGS
Balance at Beginning of Year
Prior Years Adjustment
Net Profit During the Year
Dividends Paid During the Year
Provision for Additional Dividends
Balance at End of Year

845,327,671

57,635,542,897
(650,400)
57,634,892,497

Balance at End of Year

27

TOTAL EQUITY

46

philippine ports
authority

annual
re p o r t

Statement of Cash Flows

For the Year Ended December 31, 2010


(With Comparative Figures as of December 31, 2009)
(In Philippine Peso)
2010
CASH FLOWS FROM OPERATING ACTIVITIES
Collection of Port Revenues
Receipt of Fund Management Income
Receipt of Other Income
Receipt of Depository Liabilities
Refund (Payment) of Guaranty Deposits, Net
Payment of Operating Expenses
Remittance of Trust Liabilities
Payment of Accrued Interest
Receipt (Payment) of Miscellaneous Liabilities/Deferred Credits, Net

2009

7,691,706,150
172,321,940
423,367,144
62,227,402
441,625
(2,313,238,322)
(529,866,126)
(156,436,748)
(32,871,279)

6,761,069,712
142,350,268
19,355,257
5,800,158
(120,192)
(2,598,636,464)
(984,459,106)
(52,614,514)
4,978,541

5,317,651,786

3,297,723,660

(1,544,674,827)
(2,074,441,405)
(148,571,511)

23,441,815
(1,897,565,801)
1,053,934,831

(3,767,687,743)

(820,189,155)

(728,292,111)
(880,505,789)
31,867,167

500,000,000
(745,265,687)
(200,000,000)
(78,672,406)

(1,576,930,733)

(523,938,093)

(2,252,088)

(847,057)

(29,218,778)

1,952,749,355

CASH ON HAND AND IN BANKS AT BEGINNING OF THE YEAR

2,631,730,631

678,981,276

CASH ON HAND AND IN BANKS AT END OF THE YEAR

2,602,511,853

2,631,730,631

Net Cash from Operating Activities


CASH FLOWS FROM INVESTING ACTIVITIES
Net Inflows (Outflows) from Investments
Payments for Construction in Progress
Acquisition (Disposal) of Property and Equipment, Net
Net Cash Used in Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Term Loan
Loan Repayments
Dividend Payments
Calamity Loans Collected(Granted), Net
Net Cash Used in Financing Activities
EFFECT OF EXCHANGE RATE CHANGES ON CASH ON HAND AND IN BANKS
NET INCREASE (DECREASE) IN CASH ON HAND AND IN BANKS

47

Notes to Financial Statements


1. AGENCY BACKGROUND

Implementation of PPA ISO-Quality Management System (QMS)


project for the Ports of Batangas, Cagayan de Oro, Davao, General
Santos, Zamboanga, Ozamis and Iloilo, in support and compliance
of Executive Order No. 605 dated 23 February 2007. For the Port of
Batangas, second internal audit was recently carried-out to verify
closure of the previous non-conformities and observations raised
during the 2009 Internal Audit and Opportunities for Improvements
raised during the Stage 1 Certification Audit. For Cagayan de Oro
Port, training on Basic Quality and Productivity Improvement Tools
for QMS has been conducted in November 2010. Meanwhile, the
Ports of Davao, General Santos, Zamboanga, and Ozamis revised
their policy and procedure manuals based on the comments and
observations raised by the Head Office. For the Iloilo Port, the
Head Office is currently undergoing review and evaluation of its
QMS Policy Procedure Manual.

The Philippine Ports Authority (PPA) was created by virtue of Presidential


Decree (PD) No. 505 dated 11 July 1974, revised by substitution on 23
December 1975 by PD 857. Its functions are to coordinate, streamline,
improve and optimize the planning, development, financing,
construction, maintenance and operations of ports or port system for
the entire country. Subsequent amendments under Executive Order
(EO) Nos. 523 & 546, issued on 16 November 1978 and 23 July 1979,
respectively, as well as Letter of Instruction (LOI) dated 11 April 1981
further enhanced PPAs corporate powers to be more responsive
to the requirements of optimum port utilization, development and
operation. In Executive Order No. 159 dated 13 April 1987, corporate
autonomy was reverted to the PPA to insure the rapid development of
port or the port system directly under it and authority was granted to
execute port projects under its port program. The PPA is not exempted
from payment of all taxes, duties, fees, imports and other charges
imposed directly or indirectly by the Republic of the Philippines and its
instrumentalities.
The PPA is a government-owned corporation attached to the
Department of Transportation and Communications for policy and
program coordination. The corporate powers of the Authority are
vested to its Board of Directors composed of nine (9) members. Its top
management is headed by a General Manager and three (3) Assistant
General Managers, one each for Engineering Services, for Operations
and for Finance, Legal and Administrative Services. Delivering the front
line services are five (5) Port District Offices (PDOs) and twenty-four
(24) Port Management Offices (PMOs) and about twenty three (23)
base ports and sixty four (64) terminals ports. A Port District Manager
heads each PDO, exercising supervision over PMOs that are headed by
PMO Managers.

o
o
o
o
o
o
o

The Authority had embarked into its Management Information System


Computerization Project, otherwise known as the PROMPT (Providing
Reliable Operations and Management of Ports Thru Technology). The
project covers the automation of all aspects of the business processes
of the PPA. Components of the project, consisting of the Port
Operations Management System (POMS), Real Estate Management
System (REMS), and Legal Support System (LSS), were rolled out for
use at different offices of the PPA in year 2007. The other components,
namely, Accounting and Financial Management System (AFMS) and
Projects and Engineering Management System (PEMS) were rolled
out for use in 2009. In 2010, the last two components, namely, the
Electronic Procurement (eProc) and Executive Information System
(EIS), passed the MISD testing process and will be scheduled for users
training and roll out in the year 2011.

As of December 31, 2010, the total cost incurred for the project was
P1.11 billion which includes payments to contractor, consultants,
softwares, IT hardware/equipment, furniture and fixtures, and
administrative expenses.

The major accomplishments of the PPA for CY 2010 are as follows:


Billion pesos worth of projects were pursued in line with the PPAs
vision of developing at least 10 ports that would meet international
standards. The development of SONA Ports and Roll-ON Roll-OFF
(RORO) ports were PPAs priority on capital expenditures for the
year. Implemented were 30 locally-funded projects, 16 of which
were completed during the year and the remaining are still ongoing.
Implementation of maintenance and repair projects on 108 port
facilities, 23 of which were completed, 42 were on-going and the
rest are still physically unstarted.
Implementation of dredging projects which covered 11 port areas/
channels under the 2010 Revised Harbor Maintenance Program, of
which three (3) were completed, six (6) are still on-going while the
remaining two (2) are for implementation in year 2011.
Generation of P8,288.44 million in revenue which was P1,159.33
million or 16.26% higher than the previous year.
Awarding of 13 contracts to various Cargo Handling Operators
(CHOs) either thru bidding or renewal of expired contracts.

48

MIS Computerization Project


Manila North Harbor Modernization Project
Vessel Traffic Management System
International Ship and Port Facility Security Code
Shore Reception Facility
E-Ticketing
Formulation of Standards for Port Development and
Maintenance

2. PPA COMPUTERIZATION PROJECT

As of December 31, 2010, the PPA has a total of 2,219 employees,


composed of 443 Head Office personnel and 1,776 filled positions at
the PDOs and PMOs.

Continued implementation of the following special projects:

3. THE MANILA NORTH HARBOR MODERNIZATION PROJECT


In line with PPAs policy of implementing an integrated program for


planning, development, financing and operation of ports, the public
bidding for the Manila North Harbor Modernization Project was
conducted. The 25-year contract for the exclusive development,
management, operation and maintenance of North Harbor, comprising
of Pier 2 up to the Slipway, including Isla Puting Bato, was awarded to
the Manila North Harbour Port Incorporated (MNHPI) on 18 October
2009. As agreed upon, the contractor is authorized to collect cargo

philippine ports
authority

handling and storage charges, cranage fees, terminal fees and other
port charges. In consideration, the MNHPI shall remit to the Authority
a fixed fee of six billion eight hundred eighteen million eight hundred
fifty five thousand pesos (P6,818,855,000) for a period of 25 years. The
management of the PPA at Manila North Harbor, on the other hand,
shall continue to collect charges such as Usage Fees, Wharfage and
Vessel Traffic Management Services Fees.

annual
re p o r t

The Contractor is committed to invest P120,000,000 for additional


works and other costs related to the construction of the Head Office
building of the Authority.

Under the Third Supplemental Contract, the Summary of Investments


to be implemented from Year 2009 to 2022 follows:
Particulars
International Containers
International Gen. Cargo
Domestic Cargo

4. PPA CONCESSION ARRANGEMENT WITH ASIAN TERMINALS, INC. (ATI)

Infrastructure
126.685
6.473
17.061
150.219

In Million US $
Equipment
IT
123.075
8.987
1.930
.362
15.180
.706
140.185
10.055

Total
258.747
8.765
32.947
300.459

On 13 March 1992, PPA entered into a contract with ATI granting the
company sole and exclusive management and operation of cargo
handling services at the South Harbor of Manila up to 13 March
2007. Subsequently, a Compromise Agreement was executed on 18
September 1995. On 2 March 1998, a Supplemental Agreement was
executed extending the contract with ATI up to 18 May 2013 renewable
for another 25 years.

In consideration of the extension of its contract term, ATI committed


to invest not less than $300 million over the next 10 years from the
effectivity of the Supplemental Agreement.

5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Breakdown of the investment commitment under the First


Supplemental Agreement in the amount of $300 million is as follows:

Basis of the Financial Statements

The Philippine Ports Authority adopted the New Government


Accounting System (NGAS) accounts prescribed under COA Circular No.
2004-02, and presented the financial statements in accordance with
state accounting principles generally accepted in the Philippines.

Head Office and Branch Office Accounts

The PPA financial statements include the accounts of the Head


Office and the different Port Districts and Port Management Offices
of the Authority. Branch accounting is maintained to account for the
transactions between and among PPA offices. The reciprocal Head
Office Subsidy Account takes the customary capital account at the
PDOs and PMOs, while the PDO/PMO Subsidy Account maintained
at the Head Office indicates the amount invested by the Authority in
its field offices. Financial statements are prepared periodically by the
PDOs and PMOs and submitted to the Head Office for preparation of
the combined financial statements.

Recognition of Income and Expense

The Authority uses the accrual method of accounting wherein income


and expenses are recognized as they are earned or incurred.

Income Tax

For income tax purposes, net profit less tax credit on investment in
fixed assets is declared. The tax credit is allowed under Section 25 of
PD 857 dated 28 December 1975. The Bureau of Internal Revenue
ruled that there is no express legal basis by which the PPA shall
claim as deduction in full its investments or capital expenditures
and, simultaneously, recover its cost as depreciation allowance. The
PPA opted for the special deduction or tax credit on investment in
fixed assets or capital expenditures during the year instead of the
depreciation expense as allowable deduction in the computation of the
Regular Corporate Income Tax (RCIT).

Pursuant to Section 27(E) of the 1997 National Internal Revenue Code,


as amended, the prescribed Minimum Corporate Income Tax (MCIT),
which is equivalent to two percent (2%) of gross income, is paid if higher
than the RCIT.

Description
Infrastructure
Equipment
IT & Communication Requirements

In Million US$
$ 204.80
79.00
16.20
$ 300.00

Summary of Investments/Implemented Projects submitted by ATI


shows that the cost of rehabilitation, improvements and procurement
of equipment made by ATI from 1998 to 2010 amounted to $139.095
million broken down as follows:
Infrastructure
Equipment
IT & Communication Requirements

$ 73.361
57.830
7.904
$ 139.095

On 19 October 2007 the Third Supplemental Contract was executed to


further extend the contract up to 18 May 2038. The Contract includes
the following provisions pertaining to ATIs investment commitment:

The Contractor shall implement the projects for rehabilitation,


development and expansion of the South Harbor facilities in
accordance with the Investment Plan, as may, from time to
time, be revised or updated pursuant to the Third Supplemental
Contract.

Any excess funds from a specified project and any unused funds
for projects not implemented by agreement of the parties shall
be utilized for developments pursuant to the Investment Plan
as may be agreed by the parties.

All infrastructure and other improvements constructed and


all equipment purchased by the Contractor pursuant to the
Investment Plan and the Third Supplemental Contract as well as
the Existing Contract shall be owned by the Contractor until the
expiration of the Extended Term. Thereafter, the Contractor shall
transfer on an as-is basis the said facilities and equipment to
the Authority through a deed of assignment without payment of
any compensation, free from any liens and encumbrances.

Also included in the PPA concession arrangement with ATI is the


construction cost of the new PPA Corporate Office located at Bonifacio
Drive, South Harbor, Port Area, Manila. The new PPA Head Office
building and air-conditioners installed therein reached an estimated
amount of P451.29 million while the office furniture, fixtures and
equipment totaled P37.30 million.

49

Foreign Exchange Transactions

Investments

Transactions in foreign currencies are recorded using the exchange rate


in effect at the date of the transactions. PPA Memorandum Circular
No. 16 dated 6 October 2006 prescribed that the 15-day average
Bangko Sentral ng Pilipinas (BSP) guiding rates prevailing at the time
of issuance of the invoice computed by the Commercial Services
Department shall be used in determining the peso value of the dollardenominated port charges due to PPA. Meanwhile, the remittances
of cargo handling operators are converted into pesos using the BSP
guiding rate prevailing at the time of payment in conformity with their
contract agreements with the PPA.

Investments in the form of Treasury Bills and Treasury Bonds and


Land Bank of the Philippines-issued bonds are valued at cost including
withholding taxes.

Property and Equipment


Property and equipment of the Authority are carried in the books
at appraised values except for additions in between the periods of
appraisal which are recorded at acquisition cost net of Value Added Tax
(VAT). Appraisal of assets is done by an independent appraiser once
every five years pursuant to the Authoritys loan covenants with the
World Bank. Upon retirement or disposal, both the assets cost and
appraisal increment and their related accumulated depreciation are
removed from the accounts and any resulting gain or loss is recognized
for the period.

Depreciation is computed based on the carrying value of the property,


net of ten percent (10%) residual value, using the straight-line method
over the estimated useful lives of the assets in accordance with PPA
Memorandum Circular No. 37-2005 issued in conformity with COA
Circular No. 2004-003.

PPA Finance Memorandum Circular No. 01-2003 provides that the


monetary asset or depository account and liabilities denominated
in foreign currencies should be restated using the BSP guiding rate
of exchange as of reporting date. Foreign exchange differences are
treated as follows:
a) For loans identified with completed projects and those used to
acquire invoiced assets, the gain or loss is recognized in profit or
loss for the period.
b) For loans related to assets still in-progress, the foreign exchange
difference is capitalized and included in the carrying amount of
the Fixed Asset-In Process.
c) For other foreign currency transactions, i.e. deposits in foreign
currency, the gain or loss is recognized in profit or loss for the
period similar to item a.

Infrastructure projects are valued following the Construction Period


Theory. The costs of on-going projects and accounts payable on the
projects are based on actual physical accomplishment reported by the
Engineering Office.
Land that forms part of property and equipment is acquired either
thru:

Provision for Doubtful Accounts

Purchase

Receivables are valued at face amounts minus allowances set up for


doubtful accounts and for any anticipated adjustments which, in the
normal course of events, will reduce the amount of receivables from
the debtors to estimated realizable values.

Transfer by the National Government consistent with Section 30


and Section 10B (i) of PD 857.

PPA Finance Memorandum Order No. 02-2009 dated 22 April 2009


prescribes the rates on provisions for doubtful accounts, as follows:

Age (Days) of
A/R Trade
Rate of
Allowance

1-30

31-90

91-180

181365

Over
365

10%

20%

40%

60%

Dormant
with
Nil Chance
of Collection

5%

Reclamation of port areas pursuant to Section 6.b (x) of PD 857.

100%

Inventories

Inventories of spare parts, except for PPA dredgers, accountable forms,


supplies and materials, are valued at cost, net of Value-Added Tax
(VAT), using the moving average method of costing.

Land purchased by the Authority is covered with Transfer Certificate


of Title, while property transferred from the National Government
and land reclaimed from the sea are covered by Proclamations and
Executive Orders. To date, a total of 41 ports have been issued with the
covering Executive Orders/Proclamations granting PPA administrative
jurisdiction over the pieces of property. Executive Orders for 66 ports
are for signature at the Office of the President, while 233 Executive
Orders covering other Port Zone Delineation Projects of the Authority
are for preparation and approval.

In conformity with COA Circular 2005-002 dated 14 April 2005, semiexpendable items with estimated useful life of more than a year
but small enough to be considered as property and equipment are
considered part of the inventory upon acquisition. Items issued during
the year are treated as expense, charged to profit or loss of the current
year.

Pursuant to PPA Memorandum Circular No. 35-2003 dated 8 December


2003, spare parts needed for PPA dredgers which are under contract
with F. F. Cruz and Company should be sourced first from the stock pile
of the Authority and shall be valued at the prevailing market price upon
issuance to the Contractor.

50

6. CASH ON HAND AND IN BANKS


The breakdown of this account is as follows:


Cash in Bank
Cash-Collecting Officers
Cash-Disbursing Officers
Cash-Other Officers

2010
2,574,743,169
27,356,383
275,745
136,556
2,602,511,853

2009
2,591,341,479
37,468,455
2,739,794
180,903
2,631,730,631

philippine ports
authority

7. RECEIVABLES

8. INVENTORIES

annual
re p o r t

This account includes the following:


2010

Receivables-Trade
Accounts Receivable
Notes Receivable
Interest Receivable
Less Allowance for Doubtful Accounts

Other Receivables
Due from Officers & Employees
Due from Operating Units & Other Funds
Due from NGAs, GOCCs & LGUs
Miscellaneous Receivables
Less Allowance for Doubtful Accounts

2009

846,880,662
29,088,731
559,990
876,529,383
(77,274,265)
799,255,118

838,646,229
29,770,293
508,117
868,924,639
(115,617,133)
753,307,506

129,083,223
47,074,074
24,310,371
82,090,876
282,558,544
(33,591,923)
248,966,621
1,048,221,739

186,682,901
38,805,092
28,720,373
56,281,881
310,490,247
(18,306,258)
292,183,989
1,045,491,495

Accounts Receivable - Trade refers to the amounts due from port


users/customers arising from trading or business transactions that
are expected to be collected within the allowable credit period.

Interest Receivable is comprised of interest and penalty charges


imposed on unpaid accounts due from port users.

Due from Operating Units & Other Funds covers the net income of
Special Take-Over Units (STUs) that are due for remittance to the
Port Management Offices of the Authority, the revolving funds of
field or terminal offices and unsettled cash advances for various port
development projects.

Due from NGAs, GOCCs, & LGUs consists of the amounts due from
various departments, bureaus, corporations and local units of the
government. Included is a cash advance amounting to P4.20 million
issued by PMO Cagayan de Oro to the provincial government of Camiguin
for land acquisition and relocation expenses of families affected by port
development projects at Benoni. The account also includes accrued
interests on investments in Treasury Bills and on bank deposits.

Advance Payment to Contractors


Prepaid Taxes
Prepaid Insurance
Procurement Service
Other Prepayments

Miscellaneous Receivables represent the amount due from


accountable officers and employees for refund of overpayments and
audit disallowances which have become final and executory.

The Allowance for Doubtful Accounts provided in conformity with the


rates prescribed in PPA Finance Memo Order No. 02-2009 dated 22
April 2009 as determined according to the number of days the Accounts
Receivable had remained outstanding follows:
No. of Days
Past Due
1-30
31-90
91-180
181-365
Over 365
Dormant

Rate
5%
10%
20%
40%
60%
100%

Past Due Accounts


Receivable
8,259,400
9,395,855
12,740,354
18,409,907
101,245,470
5,262,393

Amount of
Provision
412,970
939,586
2,548,071
7,363,963
60,747,282
5,262,393
77,274,265

2010
194,315,625
150,527,568
22,980,647
14,291,617
67,413,403
449,528,860

As Restated
2009
199,930,177
66,657,062
26,204,868
23,519,721
98,573,159
414,884,987

This account includes the following:

Advance Payment to Contractors not exceeding 15% of the total contract


price are granted pursuant to Republic Act 9184. The advances, which
are repaid thru deductions from progress payments to Contractors,
are secured with irrevocable letters of credit of equivalent values from
commercial banks, bank guarantees or surety bonds.

Prepaid Taxes consist of the amounts of expanded or creditable


withholding taxes deducted by port users from wharfage and rental
of real property and other port facilities. Section 76 of the National
Internal Revenue Code allows cash refund of the amount withheld
or the use of the covering tax credit certificates against future tax
liabilities.

Other Prepayments pertains to deferred charges such as excess income


tax payment, excess output VAT payment, and feasibility study charges.
Deferred tax asset recorded this year resulted from overpayment of
income tax for CY 2009 income amounting to P76.50 million (based on
Income Tax Return filed on January 5, 2011). This amount was, however,
reduced to P41.90 million at year end due to application as a tax credit
in the annual income tax return filed for CY 2010. The account also
includes prepaid interest and other prepaid expenses.

The account balance for 2009 was restated to reflect the adjustment
for the overpayment of Income Tax for the said year in the amount of
P76.50million.

Due from Officers and Employees includes calamity loans granted to


PPA officers and employees, receivables for tax deficiencies, and cash
advances for travel granted to PPA Officers and employees.

9. PREPAYMENTS

Notes Receivable represents the realizable value of promissory notes


issued by port users to cover the assessments of their restructured
accounts, payable within specified repayment period.

This account includes inventory balances of office supplies, accountable


forms, spare parts, construction materials and other supplies
and materials. The book value of spare parts for PPA dredgers in
the custody of the Head Office Harbor Maintenance Department
amounting to P102.85 million for CY 2010 and P103.14 million for CY
2009 substantially comprised the balance of the account.

10. OTHER CURRENT ASSETS


The breakdown of this account is as follows:


Miscellaneous-Input VAT
Guaranty Deposits
Others

2010
63,621,456
8,980,255
236,760
72,838,471

2009
195,675,487
9,421,880
240,760
205,338,127

51

Miscellaneous-Input Value Added Tax (VAT) pertains to the carried over balance of VAT paid by the Authority for acquired goods and services that may
be applied as tax credit or deducted from the remittance of Output VAT.

Guaranty Deposits consist of the amounts deposited with contractors/suppliers to guarantee performance of obligation, such as deposits with
Meralco, PLDT, lessors of buildings occupied by the Authority, and others.

11. PROPERTY AND EQUIPMENT


This account is composed of the following:

At December 31, 2009


Cost
Accumulated Depreciation
Net Carrying Value
Year Ended December 31, 2010
Opening Carrying Value
Additions
Disposed/Retired/Completed/Transferred
Depreciation for the Year
Adjustment on Prior
Years Depreciation
Closing Net
Carrying Value
At December 31, 2010
Cost
Accumulated Depreciation
Net Carrying Value

(Amounts in Thousands)
Machinery
Motor
and
Vehicles
Equipment

Land

Buildings
and Other
Structures

Construction in
Progress

59,484,221
59,484,221

36,196,258
(13,300,504)
22,895,754

2,687,404
2,687,404

199,410
(117,496)
81,914

59,484,221
914,752
(82,268)
-

22,895,754
1,448,543
(78,896)
(1,339,169)

2,687,404
2,418,542
(2,290,625)
-

(109,800)

Office
Equipment

Other
Fixed
Assets

TOTAL

286,526
(128,803)
157,723

1,388,562
(472,146)
916,416

1,352,949
(959,392)
393,557

101,595,330
(14,978,341)
86,616,989

81,914
1,373
(2,721)
(12,405)

157,723
39,753
(6,603)
(23,970)

916,416
220,757
(29,917)
(127,918)

393,557
(273,509)
(54,412)

86,616,989
5,043,720
(2,764,539)
(1,557,874)

2,199

8,024

39,286

243,896

183,605

60,316,705

22,816,432

2,815,321

70,360

174,927

1,018,624

309,532

87,521,901

60,316,705
60,316,705

37,565,905
(14,749,473)
22,816,432

2,815,321
2,815,321

198,062
(127,702)
70,360

319,676
(144,749)
174,927

1,579,402
(560,778)
1,018,624

1,079,440
(769,908)
309,532

103,874,511
(16,352,610)
87,521,901

The value of land includes the cost of entry of Judgment from the Supreme Court En Banc in G.R. Nos. 154211-12, 158252, 166200, 168272, 170683
and 173392 amounting to P255 million which will be paid in 2011 to the owners of property covered by Batangas Port Development Project Phase II.

The latest appraisal of fixed assets was conducted in 2006.

The value of Construction in Progress corresponds to the percentage of completion of each project as reported by the Engineering Office as of
December 31.

Depreciation expense on port structures amounting P1,289,229,403 accounted for 82% of the total depreciation during the year of P1.57 billion.

The account includes various fixed assets currently being utilized by Asian Terminals, Inc. (ATI) and still in the books of PMO South Harbor. The list of
assets, their costs, accumulated depreciation and carrying amounts follows:

Asset Type/Description
ATI Hiring Hall (formerly Port Police Division/Port Engg. Office, Rotation Hall, Blk 155
Concrete and Asphalt Pavement, CY 01
Concrete Yard, CY 02
Concrete Yard, CY 03 (Stalag)
Water Line Distribution System, Pier 5*
Warehouse No. 1 Block 170 (formerly Metroport)
Warehouse No. 2/ATI Operations & Engg. Center, Blk 141 (formerly Metroport)
Warehouse No. 3/ATI Engg. Workshop Blk 142 (formerly Metroport)
Warehouse No. 1-B, Blk 109
No. 2 Pier 13, Shed E
No. 9 Pier 9, Shed B
Gate 4 Entrance Shed & Security Booth
ATI GSD Workshop (formerly Marina Motorpool Shop & Shed, Blk 177)
Pier 3
Pier 15 (old) including rehabilitation and other works
Pier 13
RO-RO Ramp, Pier 13
Pier 9 (old) including rehabilitation and other works
Pier 5 (old) including rehabilitation and other works
Note:

52

* Water line distribution system includes Pier 3, Pier 5 and Pier 9.

Reproduction
Cost
CY 2006
7,300,000
66,745,000
19,032,000
3,795,000

As of December 31, 2010


Accumulated
Carrying
Depreciation
Amount
3,796,000
3,504,000
38,712,100
28,032,900
11,038,760
7,993,240
2,201,100
1,593,900

23,600,000
16,700,000
11,080,000
32,670,000
12,408,000
25,220,000
1,135,000
15,390,000
328,254,000
349,728,000
380,259,000
9,277,000
331,674,000
386,880,000
2,021,147,000

12,272,000
13,694,000
5,761,600
23,522,400
8,933,960
18,158,400
1,021,500
10,311,800
190,511,360
207,265,360
197,814,660
8,349,300
249,199,880
167,051,320
1,169,615,500

11,328,000
3,006,000
5,318,400
9,147,600
3,474,040
7,061,600
113,500
5,078,200
137,742,640
142,462,640
182,444,340
927,700
82,474,120
219,828,680
851,531,500

36,774,000

33,096,600

3,677,400

philippine ports
authority

12. INVESTMENTS IN SECURITIES


Restricted Cash Deposits pertain to the funds held in escrow which


are either kept in fixed-term deposits at the BTr, Land Bank of the
Philippines and the Development Bank of the Philippines. These funds
are earmarked for the partial settlement of claims involving Case No.
5447 concerning land expropriation in Batangas and claim for real
estate tax at the Port of Iloilo.

Deposits with the BTr account pertains to the balance of the


Special Account kept with the Bureau of Treasury in pursuant to
the requirements of PD 1234. Collections remitted, as well as
reimbursements of PPA advances for project expenditures financed by
foreign loans, are deposited to this account through the then Central
Bank of the Philippines. The account is similarly covered with request
for write off in PPA books since it is inactive for several years and is
no longer found in the books of the Bureau of Treasury. The use of
this account was discontinued with the issuance of Executive Order
No. 159.

Receivable from the PNR account pertains to the balance of a P20


million loan that was granted to the Philippine National Railways for
the rehabilitation of existing railways from the Manila International
Container Terminal (MICT) in Port Area, Manila to the Food Terminal,
Inc. (FTI) in Taguig, Metro Manila. The outstanding balance of P18
million remained unsettled despite series of negotiations with the
PNR. Thus, officials of PPA-Legal Services Department and the Office
of the Government Corporate Counsel (OGCC) decided to submit the
case for arbitration before the OGCC/DOJ. The account is provided with
a 100% allowance for uncollectibility.

This account represents funds earmarked for various infrastructure


projects and for the retirement benefits of PPA personnel that were
invested in the following:
Treasury Bills
Treasury and LBP Bonds
Others

2010
1,825,936,343
347,002,804
270,000
2,173,209,147

2009
817,095,558
98,683,185
270,000
916,048,743


The holding period of the T-bills, with interest rates of 4.35% to 4.60%,
ranges from 348 to 364 days. The Land Bank bonds consist of 25-year,
6% bonds that are tax-free; whereas the Treasury bonds with holding
period of 974 and 1,032 days and interest rate of 8.5% and 5.25% will
mature in March 2011 and January 2013.
13. NOTES SINKING FUND

In accordance with the Sinking Fund Management Agreement covering


the issuance in year 2007 of P2 billion Corporate Notes, the PPA shall
establish and maintain a Sinking Fund with the Bureau of Treasury
(BTr), the Sinking Fund Manager, for the purpose of redeeming the
Notes upon maturity in 2015. The amount of P262.013 million shall
be payable annually on every anniversary of its issue. The Fund
accumulated to P835.92 million and P548.410 million as of December
31, 2010 and 2009, respectively, inclusive of interest earned.

15. ACCOUNTS PAYABLE

14. OTHER NON-CURRENT ASSETS


Less Allowance for Doubtful Accounts

This account consists of the following:

Non-Operating Assets
Receivable from MNHPI
Restricted Cash Deposits
Deposits with the BTr
Receivable from the PNR
Items in Transit
Others

annual
re p o r t

2010
232,727,700
102,506,548
22,030,546
18,748,154
18,000,000
3,061,712
1,304,172
398,378,832
18,000,000
380,378,832

2009
287,085,898
102,506,548
743,573,384
18,748,154
18,000,000
66,936,756
1,218,531
1,238,069,271
18,000,000
1,220,069,271

Non-Operating Assets to a large extent is comprised of the costs of


projects implemented by the Department of Public Works and Highways
(DPWH) thru the issuance of cash advances to its accountable officers
amounting to P109.58 million, and another P10.80 million issued in 1977
which have remained unsettled to date. The accounts are subject of a
previous request to the Commission on Audit for closure/derecognition
in the books. Evaluation of the request cannot be completed pending
completion and submission by management of additional supporting
documents. Resubmission of the request, together with the required
documents was done by Management in August 2010. The account
also includes the carrying values of serviceable assets but no longer
used in port operations and the value of unserviceable assets awaiting
disposal.
Receivable from MNHPI represents the balance on advances made by
the Authority in payment of the past service benefits of port workers
at the Special Take-Over Unit (STU) United Dockhandlers Inc. (UDI) of
PMO North Harbor. As stipulated in Section 3.02-b of the Contract
for Development, Management, Operation and Maintenance of the
Manila North Harbor signed 19 November 2009, the amount shall be
reimbursed in five years at P20.6 million per year, starting on the
fourth year, by the winning bidder, the Manila North Harbour Port, Inc.
(MNHPI).

This account is composed of the following:


Trade/Business Payables
Due to Officers and Employees
Accrued Interest Payable
Intra-Agency Payables

2010
2,739,668,960
196,867,637
45,402,624
509,175
2,982,448,396

2009
1,921,991,429
265,871,357
46,341,955
92,829,553
2,327,034,294

Trade/Business Payables are obligations incurred in the procurement


of goods and services from private suppliers and entities arising from
the conduct of business operations. It also includes set up of payables
amounting to P255 million representing the expropriation case of
property for Batangas Port Development Project Phase II which was
finally resolved by the Supreme Court and will be totally settled in
2011.

Due to Officers and Employees consists of liabilities set-up for the


payment of services rendered by employees i.e., salaries, overtime,
bonuses and incentives, allowances, reimbursement of official
expenses, and other claims due to PPA personnel.

Accrued Interest Payable pertains to the amount of interests due for


payment on foreign loans acquired from various creditors.

Intra-Agency Payables are liabilities of one PPA office to another such


as those covered with Authority to Pay (ATP) and amounts due to
Special Take-Over Units.

16. PAYABLES TO OTHER GOVERNMENT AGENCIES


This account is comprised of inter-agency payables involving the


mandatory deductions withheld from salaries of personnel that
are due for remittance in payment of taxes, employees insurance
premium contributions, and loan amortizations. Also included are
liabilities for advances made by other government agencies for specific
purposes.

53

Due to the BTr balance in CY 2009 was restated due to dividends for CY
2008 and 2009 of P712,919,626 remitted and taken up in CY 2010.
2010
470,287,912
80,230,795
27,169,682
12,818,357
4,981,733
4,551,753
979,049
126,318
601,145,599

Due to the BTr


Due to BIR
Due to Other National Government Agencies
Due to Govt Service Insurance System
Due to Local Government Units
Due to Other GOCCs
Due to Pag-IBIG
Due to Philhealth

As Restated
2009
1,551,310,931
173,202,752
7,846,175
16,944,080
1,422,706
50,312,467
1,259,906
219,923
1,802,518,940

17. CURRENT PORTION OF FOREIGN LOANS PAYABLE


The amount represents maturing obligations on long-term debts or


the principal amortization on foreign loans due for repayment on the
following year.

20. LOANS PAYABLE - DOMESTIC


This account pertains to the first tranche released in 27 May 2009 of


a P1.0 billion, two-tranche loan facility acquired from the Philippine
Veterans Bank to finance the construction of port facilities. The
domestic loan has a fixed interest rate for the first three years based
on the three-year PDST-F rate at the date of drawdown for each
tranche, plus a spread of % (0.50%). Thereafter, interest will be repriced annually based on the one year PDST-F rate plus a spread of
%. Interest is payable quarterly and computed on a 360-day calendar
period. The loan has a term of seven years from the date of release
inclusive of three years grace period. The principal is payable in eight
equal amortizations starting on the seventh semi-annual payment
date. The release of the second tranche of P500 million has been
extended up to 31 March 2011.

21. CORPORATE NOTES

18. OTHER CURRENT LIABILITIES


2010
193,902,544
138,270,388
35,157,714
30,202,499
3,881,429
148,573,272
549,987,846

Trust Liabilities
Depository Liabilities
Current Portion-Retirement Payable
Performance/Bidders Bonds Payable
Tax Refund Payable
Other Payables

2009
143,554,198
76,042,985
35,367,591
29,642,878
4,258,246
73,477,659
362,343,557

Trust Liabilities consist substantially of retention fees withheld from


suppliers and contractors to guaranty the performance and delivery of
contracted goods and services, and deductions on salaries of personnel
for Pantalan Union dues, and Employees Cooperative.
Depository Liabilities are deposits other than those required to
guaranty the performance of contracts.

The PPA entered into an Issue Management and Underwriting


Agreement with the Development Bank of the Philippines in 2007, for
the issuance of a P2.0 billion seven-year Corporate Notes with fixed
interest rate of 7.783%, payable every quarter. The first tranche of
the Corporate Notes guaranteed by the Republic of the Philippines
amounting to P1.0 billion was released on 18 July 2007. The second
and third tranches amounting to P500 million each were released on
14 March 2008 and 13 May 2008, respectively. The taxes and other
charges incurred in the issuance of the notes were recognized as
expense in the period of release.

22. RETIREMENT PAYABLE


This account represents the amount earmarked to cover the present


money value of the retirement gratuity of PPA personnel qualified to
retire under Republic Act (RA) 1616, wherein the Agency is mandated
to pay lump sum amount to the retirees, including the present money
value of accumulated leave credits of personnel based on their basic
salaries as of reporting date, as follows:

Other Payables include liabilities for the relocation of informal


settlers.

19. LOANS PAYABLE - FOREIGN


Below is the breakdown of the account:


Loan
Account
ADB-875
JBIC-PH-P40
JBIC-PH-P61
JBIC-PH-P84
JBIC-PH-P91
JBIC-PH-P122
JBIC-PH-P172
JBIC-PH-P187
JBIC-PH-P187A
KFW-D1-P2
KFW-D2-P2

Interest
Rate
%
6.53
3.00
3.00
3.00
3.00
2.70
2.30
2.20
2.20
2.00
2.00

Current Portion

No. of Years
& Maturity
Date
20.0 Oct. 2012
20.5 June 2010
20.5 Sept. 2013
20.5 Jan. 2018
20.5 Jan. 2018
20.5 June 2021
20.5 Mar. 2027
20.0 Sept. 2028
31.0 Sept. 2038
20.0 Dec. 2011
20.0 Dec. 2011

Loan
Amount
$

43,083,327
1,529,753,393
169,794,479
61,381,669
169,158,544
5,497,049,624
502,889,141
13,788,000,000
767,000,000
306,775
2,388,410

Outstanding Balance
In Peso
In Foreign Currency
1,385,079,094
11,193,000
33,120,000
25,449,000
70,108,000
3,083,679,000
429,240,000
12,307,554,000
970,514,000
30,677
226,668

2010
P 520,216,578
13,349,016
12,067,317
33,243,564
1,513,067,434
217,492,229
6,265,970,071
503,569,595
890,158
6,151,707
9,086,017,669*
(788,167,167)
P 8,297,850,502

*equivalent to $ 207.042 million

54

2009
P 700,711,514
5,662,539
16,755,408
12,874,649
35,467,637
1,560,033,206
217,152,516
6,226,391,569
490,983,033
2,045,100
15,110,703
9,283,187,874
(728,292,112)
P 8,554,895,762

philippine ports
authority

2010
Balance as of January 1
Less Payment of Retirement Gratuity and
Terminal Leave Benefit During the Year
Add Provisions for the Year
Accumulated Leave Credits
Retirement Gratuity
Total Retirement Payable December 31
Less Current Portion
Retirement Payable Non-Current Portion

2009

414,794,203

359,455,254

(49,197,621)

(42,463,908)

21,686,620
78,371,811
465,655,013
(35,157,714)
430,497,299

22,644,267
75,158,590
414,794,203
(35,367,591)
379,426,612

annual
re p o r t

Net Income for 2009 was restated due to excess payment of income
tax for CY 2009 taken up as prepaid taxes in 2010. In 2009, Financial
statement disclosed an income tax of P546,369,843 while the final
Income Tax Return showed that the amount due is P469,866,369
only with a difference of P76,503,474. Also, Provision for Dividends
as reflected in the Financial Statement was restated to reflect
understatement of Dividends Payable taken up in 2009. In 2009,
Dividends Payable taken up is only P810,024,746 for 2008 and none for
2009 in 2009 Financial Statements. In 2010, adjustment on Dividends
Payable of P712,919,626 was taken up, P89,179,362 for 2008 and
P623,740,264 for 2009.

23. DEFERRED CREDITS

28. ICTSI FEES

In 1988, the Authority entered into an agreement with the International


Container Terminal Services, Inc. (ICTSI), a consortium of Andres
Soriano Corporation (ANSCOR), E. Razon, Inc. (ERI), and Sealand Orient
International (SOI), for the management, operation and development
of the Manila International Container Terminal (MICT) at the Port of
Manila, subject to the direct control and supervision of the Authority.

The contract provides that the contractor shall remit to the Authority
in Philippine Pesos an amount equivalent to Three Hundred Thirteen
Million Seven Hundred Fifty Six Thousand ($313,756,000) US Dollars in
one hundred (100) quarterly installments, payable in advance not later
than the fifth (5th) day of the first month of every quarter without the
need for demand. The U.S. dollar equivalent of the Philippine peso
shall be based on the reference rate of the Bankers Association of the
Philippines or the equivalent reference rate at the time the payment is
made.

In addition to the Fixed Fee, the contractor shall share with the Authority
variable fee equivalent to 20% of its GROSS REVENUE which, as defined
in the contract, shall include all income generated by the Contractor
from the MICT from every source and on every account except interest
income, whether collected or not, to include but not limited to Harbor
Dues, Berthing Fees, Wharfage, Cargo Handling Revenues, Cranage
Fees, Stripping/Stuffing Charges and all other revenues from Ancillary
Services.

A renewal of the agreement was made on 20 April 2005 which provides


for an extension of the contract period for another 25 years reckoned
from 19 May 2013. Further, the agreement requires that the contractor
shall:

This account includes the amount of income received before it is


earned or realized, such as Output Vat on income earned that is due for
remittance to the Bureau of Internal Revenue and amounts received in
advance on leased property.

Output VAT
Deferred Credits to Income
Other Deferred Credits

2010
91,835,401
14,314,441
6,883,029
113,032,871

2009
86,102,505
53,011,269
6,790,376
145,904,150

24. CAPITAL CONTRIBUTION


EO No. 513, amending PD 857, increased the authorized capital of the


Authority from P3.0 billion to P5.0 billion.

Government Contribution to the Authority as initial paid up capital


consisted of:
a) The value of assets (including port facilities, quays, wharves, and
equipment) and such other property, movable and immovable
contributed or transferred by the Government and its agencies
valued at the date of the contribution or transfer after deducting
the loans and other liabilities of the Authority.
b) The initial cash appropriation of P2.0 million out of the funds of
the National Treasury and further sums, including working capital
contributed by the National Government.

25. DONATED SURPLUS


1. Provide additional investment of not less than US$125 million for


the construction and development of new facilities which shall be
completed not later than 18 May 2013;

Donated Surplus represents the amount of cash or property received


as donations from entities other than the National Government.


26. APPRAISAL SURPLUS

3. For the extended term, the Fixed Fee shall be US$600 million
payable in 100 quarterly installments, to be paid in advance not
later than the 5th day of the first month of every quarter without
the need for demand;

Appraisal increase, which is the difference between historical cost


and the appraised value of fixed assets, is added to the carrying
value of property and equipment. Appraisal Surplus corresponds to
the cumulative amounts of appraisal increases determined by hired
independent appraisers in the conduct of appraisal of PPA Fixed Assets,
once every five years. The last appraisal was conducted in 2006.

27. RETAINED EARNINGS


2. Pay lump sum fee of P670 million on 20 May 2013;

This account represents the recorded cumulative net profit of the


PPA from the start of its operation, net of the dividends paid to the
BTr. Pursuant to Section 5 of RA 7656 dated 9 November 1993, the
Authority declares and remits fifty percent (50%) of its annual earnings
as dividends to the National Government.

4. The variable fee during the extended term shall be 20% of the gross
revenue earned at the MICT.
29. WHARFAGE DUES

This refers to the charges levied on loaded/unloaded cargoes whether


imports, exports, inbound, outbound, or transshipments.
The
computation is based on metric ton for non-containerized cargoes and
per box for containerized cargoes.

55

30. SHARE IN ARRASTRE / STEVEDORING INCOME

38. LAY-UP FEES

This account represents the government share on the receipts or


earnings of cargo handlers from arrastre and stevedoring service.
Arrastre refers to the set of shore-based cargo handling activities that
includes, but is not limited to, the receiving or loading of cargoes to/from
ships tackle with the use of dock gang and cargo handling equipment.
On the other hand, stevedoring service covers the discharging and
loading of containers, loaded or empty, from the vessel to the dock/
apron and vice-versa, and the opening and closing of hatch covers, lids
and supporting beams.

This pertains to the amount assessed against vessels engaged in


coastal (domestic) trade that are authorized to temporarily lay-up and
anchor at any port.

39. OTHER INCOME


Breakdown of this account is shown below:


2010

Service Income
Fines and Penalties-Service Income
Seminar Fees
Other Service Income

32. PORT DUES


Vessels engaged in foreign trade, including those engaged in barter
trade, that enter any port, whether private or government-owned, for
loading and discharging cargoes, embarking/disembarking passengers,
bunkering or taking provisions or repairs and changing members of the
crew are charged with port dues based on the vessel gross revenue
tonnage (GRT). It is a one-time charge assessed against vessels
anytime that they call at the port.

Business Income
Rent Income-Buildings, Warehouses
&Guesthouses
Reefer Services
Sale of Water
Sale of Power
Printing and Publication Income
Net Income from STUs
Parking Fees
Fines and Penalties-Business Income
Rent Income-Operations/Rental of
Crane/Cargo Handling Equipment
Other Business Income
Income from Dormitory Operations
Truck Scale
Others

33. STORAGE CHARGES


Storage fees are charges on cargoes that remain in the cargo sheds,
warehouses or in the open storage area of any government-owned
port beyond the free storage period allowed. Increase or decrease
in storage revenue can be attributed to the growth or decline in the
number of shippers/port users availing of storage services.
34. PORT USAGE FEES
Vessels engaged in coastal domestic trade that berth or temporarily lay
up or drop anchor at any government port are charged a port usage fee
based on gross revenue ton (GRT).
35. TERMINAL FEES
The account consists of the amount charge on vehicles for the use of
the port facilities and services which is collected by the PPA on a per
sealeg journey at the port of loading or embarkation.
36. VESSEL TRAFFIC MANAGEMENT SERVICE (VTMS) FEES
PPA Administrative Order No. 03-2006 dated 16 June 2006 authorized
the collection of the Vessel Traffic Management Service (VTMS) Fee.
It includes fees collected/assessed in all international and domestic
vessels entering, departing, navigating, operating, and anchoring/
mooring within the VTMS covered areas.
37. PILOTAGE
This represents the government share on the service rendered or
required to be performed by the harbor pilots to maneuver vessels to/
from the ports as required or as deemed necessary in each pilotage
district.

56

8,253,734
6,746,773
961,523
15,962,030

7,208,388
5,053,074
1,450,771
13,712,233

97,200,898
1,113,660
98,314,558

3,343,185
299,160
1,309,617
4,951,962

161,673,052
24,036,388
16,541,474
16,947,645
16,366,271
16,240,711
3,462,502
3,326,558

174,893,132
20,304,385
47,857,582
13,696,670
11,160,182
18,163,022
3,820,179
11,247,168

2,289,698
2,110,367
1,073,569
619,983
27,449,501

123,936
3,159,775
847,656
485,131
10,315,787
316,074,605

406,414,307

Dockage or berthing fee is the amount assessed against a vessel


engaged in international (foreign) trade for berthing. It is levied on
cargo vessels based on the number of days of stay for the purpose
of discharging and/or loading cargo; and on non-cargo vessels for the
purpose of loading and/or taking passengers or for taking fresh water
supply or receiving bunker fuel.

2009

292,137,719

31. DOCKAGE FEES

Permits and Licenses


Permit Fees
Other Permits and Licenses
Fines and Penalties-Permits & Licenses

334,738,800

40. PERSONAL SERVICES


The breakdown of expenses incurred for PPA employees follows:


2010

Salaries and Wages


Other Compensation
Other Bonuses and Allowances
Overtime and Night Pay
Year-end Bonus
Personnel Economic Assistance Allowance
Representation Allowance
Cash Gift
Transportation Allowance
Clothing/Uniform Allowance
Honoraria
Productivity Incentive Allowance
Additional Compensation
Hazard Pay
Longevity Pay
Subsistence/Laundry/Quarters Allowance

2009

558,916,343

484,937,676

284,331,818
60,339,146
52,307,640
51,944,887
14,810,861
13,952,182
11,656,917
9,018,594
4,877,916
938,000
797,903
196,498
126,018
505,298,380

316,356,234
51,784,306
54,163,921
15,354,887
14,256,273
7,476,693
11,106,321
10,113,860
3,998,000
37,730,187
199,476
120,787
3,600
522,664,545

philippine ports
authority

2010

57,148,240
5,829,350
2,857,029
3,394,718
69,229,337

52,837,471
81,663,223
21,726,814
5,116,013
1,805,303
920,453
5,963,408

53,022,955
77,975,802
22,679,905
5,064,815
1,827,150
921,226
4,145,849
165,637,702

1,313,540,451

Other Personnel Benefits


Rice Allowance
Retirement Benefits
Monetized Leave
Medical Allowance
Meal Subsidy
Childrens Allowance
Other Benefits

66,908,410
6,390,644
2,714,230
3,279,759
79,293,043

casual and contractual employees, incidental traveling expenses and


other related costs.

2009

170,032,685

Personnel Benefits Contribution


Life/Retirement Insurance Premium
Contributions
PHILHEALTH Premiums
PAG-IBIG Premiums
ECC Contributions

1,242,469,260

On 15 October 2001, a contract was entered into by and between the


PPA and F.F. Cruz & Co., Inc. (FFCCI) for the Rehabilitation, Operation
and Maintenance of the PPA Dredging Fleet under the Rehabilitate and
Maintain Scheme. Under the contract, the private dredging contractor
shall rehabilitate, operate, and maintain the six (6) dredge vessels (
PHILPORTS D-I to D-VI) and the two (2) supply boats (PHILPORTS A-I
and A-II) and shall undertake the maintenance dredging at various ports
in the country that are included in the PPA Port System. The contract
started on 6 November 2001 and shall be valid for ten (10) years. The
Authority will pay FFCCI the cost of the actual volume dredged per year
within the contract period. The contract has a guaranteed minimum
annual dredging volume of 2,000,000 cubic meters.

Repairs and Maintenance consists of expenses in bringing to normal


condition the following assets:
Land Improvements
Furniture, Fixtures & Equipment
Buildings and Structures
Motor Vehicles/Other Transport Equipment

41. MAINTENANCE AND OTHER OPERATING EXPENSES


This account consists of:


2010

760,731,614
606,242,583
214,658,692
151,530,706
126,308,269
110,835,520
70,725,240
51,057,580
50,959,115
49,425,300
37,313,693
27,818,682
24,716,710
20,624,843
16,998,669
11,323,727
8,163,110
8,000,000
3,904,554
1,607,146
1,089,769
754,304
571,829
473,833
8,500,240
2,364,335,728

341,543,528
569,824,706
192,677,178
162,679,271
114,603,814
232,890,224
66,709,913
44,291,818
80,504,922
6,241,250
31,881,638
22,528,595
22,932,570
20,907,530
7,862,226
10,591,805
11,308,919
8,000,000
556,000
29,822,350
1,268,866
581,693
602,735
294,432
179,214
8,508,104
1,989,793,301

1,557,874,705
34,532,864
32,070,426
34,045

1,571,632,180
29,360,866
6,910,159
243,576
1,608,146,781

3,988,847,768

Non-Cash Expenses
Depreciation Expense
Final Tax
Bad Debts Expense
Loss on Assets

2009

1,624,512,040

Maintenance & Other Operating Expenses


Repairs and Maintenance
Dredging Expense
Security Services
Utility Expenses
Other Professional Services
Awards and Indemnities
Taxes, Insurance and Other Fees
Auditing Services
Supplies and Materials Expense
Printing and Binding Expense
Janitorial Services
Communications Expense
Traveling Expense
Training and Scholarship Expense
Consultancy Services
Representation Expense
Rent Expense
Intelligence Expense
Rewards and Other Claims
Subsidies and Donations
Advertising Expense
Membership Dues & Cont. to Organizations
Subscription Expense
General Services
Transportation and Delivery Expenses
Miscellaneous Expenses

annual
re p o r t

3,597,940,082

Dredging Expense represents cost incurred in dredging the harbors to


the required depth through removal of silts. It also includes expenses
in the maintenance of basins and navigational channels, cost of minor
repairs of dredging equipment, spare parts, salaries and wages of

2010
704,213,455
26,264,143
20,296,694
9,957,322
760,731,614

2009
317,631,502
8,023,690
6,578,767
9,309,569
341,543,528

Awards and Indemnities pertain to amounts awarded by courts


or administrative bodies to persons affected by the destruction of
property/death/injury, as well as the monetary service/loyalty awards
given to officials and employees for attaining several years of service
to the PPA. It also includes the corporate Christmas package given to
all officers and employees pursuant to PPA Memorandum Order No.
76-2008.

Utility Expenses cover the costs of water, electricity, and gas for
illumination consumed at office buildings, grounds and other port
structures.

Taxes, Insurance and Other Fees represent the amounts incurred for
taxes, duties, licenses, vehicle registration fees, fidelity bond premiums
of accountable officers, and insurance premiums for motor vehicle and
other property.

Intelligence Expense pertains to expenses incurred for highly sensitive


activities as approved by the President of the Philippines.

Final Tax pertains to the tax deducted on the interest income earned on
investments in securities.

42. FUND MANAGEMENT INCOME


This account covers interest earned from various deposits and


investments in T-bills, bonds and other marketable securities.

43. OTHER GENERAL INCOME


This account consists of:

Interest Income
Insurance Income
Miscellaneous Income

2010
5,653,025
597,849
10,701,963
16,952,837

2009
3,539,903
318,562
13,591,241
17,449,706

57

44. FOREIGN EXCHANGE GAIN (LOSS) ON REVALUATION

47. CONTINGENT ACCOUNTS

In accordance with Philippine Accounting Standards (PAS) 21, balances


of foreign currency-denominated accounts (i.e., foreign loans and
dollar deposits) are revalued at year-end to reflect their actual values
at reporting date. The difference is recognized in profit or loss. The net
effect of gains and losses as a result of foreign exchange fluctuations
during the year compared to last year follows:
Gain(Loss) on Revaluation of Outstanding
Balances of Foreign Loans
Gain(Loss) on Revaluation of Balance of
Foreign Currency Deposit Accounts
Net Foreign Exchange Gain(Loss) on
Revaluation

2010

2009

(531,121,908)

296,610,517

(2,252,088)

(847,057)

(533,373,996)

295,763,460

The following are the peso equivalent per Bangko Sentral ng Pilipinas
guiding rates of exchange that were used in determining the outstanding
balances of foreign loans and dollar deposits as of reporting date:
Currency
United States Dollar ($)
Japanese Yen (Y)
European Euro ()

2010
43.8850
0.5374
58.0335

48. Supplementary Information required by BIR UNDER RR No. 15-2010


On 25 November 2010, the BIR issued Revenue Regulations (RR)


No. 15-2010 prescribing additional procedural and/or documentary
requirements in connection with the preparation and submission
of Financial Statements accompanying the Tax Returns. Under the
said RR, it is required that, in addition to the disclosures mandated
under the Philippine Financial Reporting Standards, and such other
standards and/or conventions as may be adopted, the Notes shall
include information on taxes, duties and license fees paid or accrued
during the taxable year.

In compliance with the requirements set forth by RR 15-2010, the


information on taxes, duties and licenses fees paid or accrued during
the taxable year are as follows:

2009
46.3560
0.5059
66.6646

45. FINANCIAL EXPENSES


This account is composed of financial charges as follows:


Interest Expense Loans/Borrowings
Other Financial Charges
Loss(Gain) on Foreign Exchange
Documentary Stamp Expenses
Bank Charges

2010
391,336,219
93,262,599
6,511,933
290,291
59,350
491,460,392

2009
395,930,998
113,369,728
(10,199,217)
2,588,230
71,381
501,761,120

Other Financial Charges include payments to the BTr for guarantee


fees on the PPA Corporate Notes guaranteed by the Republic of the
Philippines (Note 21) and management fees and other expenses as
Fund Manager of the Corporate Notes Sinking Fund (Note 13).

Loss(Gain) on Foreign Exchange represents the amount recognized as


actual gain/loss from foreign currency transactions. This consists of
(a) the difference between the actual amount billed and settled at the
time of debt servicing of the foreign loan and its recorded book value
and (b) the difference between the peso equivalent of the amount of
withdrawal from dollar bank deposits at actual rates prevailing at the
time of withdrawal as against its carrying value using the adopted
booking rate.

46. INCOME TAX


The Statement of Comprehensive Income for 2010 reflects a Net Profit


After Tax amounting to P1,491.86 million. For this year, PPA is subject
to the payment of Income Tax based on 30% Regular Tax Rate as this
is higher than the Minimum Corporate Income Tax which is computed
at 2% of Gross Income after deducting investments in fixed assets or
capital expenditures during the year. For the three quarters of 2010,
PPA already remitted to the BIR P441.94 million for income tax. The
current tax expense for the year is reported at P476.54 million. The
P34.60 million tax deficiency was offset from the deferred tax asset of
previous years excess income tax payment.

58

In compliance with the provisions of PAS 37 - Provisions, Contingent


Liabilities and Contingent Assets, Contingent Assets and its contra
account Contingent Surplus were excluded among the accounts
presented in the Statement of Financial Position. Depending on the
outcome of events, income or surplus that may be realized on contingent
assets amounts to P1,022.38 million and P988.41 million in 2010 and
2009, respectively. The account consists mainly of contested accounts
receivable with expected income from increased rates on lease of land
and other PPA port facilities. It is the policy of the Authority and as
embodied in the lease agreements that rental rates are automatically
adjusted based on the appraised value of the property. This adjusted
rate on lease serves as the basis of computation of charge in the invoice
issued to the lessee.

1. VAT Output Tax


PPA is a VAT registered company with Vat Output Tax declaration


of P815,858,722 for the year based on the amount reflected in the
Sales Account of P6,800,229,536.

The Authority has zero-rated sales of P1,220,422,555 pursuant to


the provision of R.A. 7716 as amended by R.A. 8241, R.A. 8424 and
R.A. 9337 and RR 16-2005.

2. VAT Input Tax


The amount of VAT Input Tax claimed is broken down as follows:
Beginning of Year

198,259,267

Current Years Domestic Purchases/Payments


Goods for Resale/Manufacture or Further Processing
Goods Other Than for Resale or Manufacture
Capital Goods Subject to Amortization
Capital Goods Not Subject to Amortization
Services Lodged Under Cost of Goods Sold
Services Lodged Under Other Assets

23,929,109
1,669,334
370,394
362,509,947

Total
Less Claims for Tax Credit and Other Adjustments

586,738,051
(535,391,479)

Balance at End of Year

51,346,772

philippine ports
authority

3. Documentary Stamp Tax (DST)


The first tranche of P500 million, representing half of the P1.0


billion Domestic Term Loan, was released in 2009. The second
tranche was programmed for withdrawal in CY 2011. There was no
availment in CY 2010, hence, there was no payment nor accrual of
DST for the said year.

4. Other Taxes and Licenses


Local
Community Tax
Business Tax/Mayors Permit/Other
Other Taxes and Licenses
National
BIR Registration Fee
LTO Vehicle Registration

10,500
23,197,344
1,720,240
75,328
803,937
25,807,349

5. Withholding Taxes
Tax on Compensation and Benefits
Creditable Withholding Taxes
Final Withholding Taxes

139,930,787
91,582,419
160,741,298
392,254,504

6. Final Assessment Notice


PPA has no final assessment notice from any BIR Regional Office.

49. PENDING LAWSUITS


The Authority is involved as a party litigant in several lawsuits still


pending for resolution that could materially affect its financial position.
Among these lawsuits are the following:
Aboitiz Transport System Corp. (ATSC) vs. PPA A damage suit
amounting to about P1.2 billion was filed against the Authority
by ATSC claiming that the PPA forced Aboitiz to transfer from
North Harbor to South Harbor, Manila resulting in ATSC incurring
increased operating expenses. The lawsuit is pending at the
Regional Trial Court
MIPTI vs. PPA Civil Case No. 96-37673 This is the case against
PPA for taking over the operations of the Manila International
Container Terminal (MICT). The Regional Trial Court (RTC) ruled
against the agency and ordered it to pay P700 million to Manila
International Port Terminal Incorporated (MIPTI). However, on
23 September 2010, the Court of Appeals affirmed RTCs decision
with modification on the amount of damages and cost of MIPTIs
properties which were taken over by PPA. The Court of Appeals
determined amount for damages, attorneys fee, and unrealized
profit reached P96,148,792. This amount does not include the
amount of back rental for equipment which has to be determined
by the Court and other litigation cost.

To date, the Court of Appeals decision has been elevated to the


Supreme Court for final decision/adjudication.

annual
re p o r t

United Harbor Pilots Association of the Philippines (UHPAP) vs.


PPA et al UHPAP is questioning the PPAs authority to impose
a 10% government share on their gross income. This case is
pending at the RTC and the Association is demanding return of all
fees collected since the beginning of their operation estimated at
a total of P98.0 million. The case is still pending at the RTC and is
unlikely to be settled in 2011.
Amelia Aquino vs. PPA PPA officers particularly Section Heads/
Chiefs whose representation and transportation allowances
(RATA) were disallowed by the Commission on Audit filed a case
claiming that they are entitled to receive the RATA they refunded;
therefore, these should be returned to them. Those promoted
to Division/Department Managers receiving RATA based on the
rates provided in the General Appropriations Act (GAA) demand
that they be given 40% of basic salary and RATA similar to the
other managers who were already receiving 40% of basic salary
before the implementation of the Salary Standardization Law.
This case is still pending at the Court of Appeals.
Benny Espinosa, in his capacity as Owner/General Manager of VS
General Services vs. PPA and Christian Santillan, Port Manager
of PMO Iloilo Espinosa is claiming for damages worth P23.0
million because the PPA took over his company as a Special TakeOver Unit (STU). This is still pending at the RTC and unlikely to be
settled within the coming year.
Barangay 650, Zone 68, etc. versus PPA et al and Barangay 651,
Zone 68, etc. vs. PPA et al and MMDA, et al These two cases
involved the relocation of squatters from the two barangays by
the Metro Manila Development Authority (MMDA). The cases are
still pending at the RTC and both parties are at the presentation
of evidence phase. In both cases, the payment for damages
demanded is at P8.0 million each or a total of P16 million.
Antonio Altas, et al vs. Iloilo River Wharf Port Services, et al This
refers to claim of the workers of Iloilo River Wharf Port Services
for profit sharing since the PPA took over the management of
the Iloilo River Wharf Port Services and converted it into a Special
Take Over Unit. The Labor arbiter awarded P15.10 million as the
profit share. The case was elevated to the Court of Appeals.
Banago Port Stevedoring vs. PPA The stevedoring company
operates at a private port in Pulupandan. The company is
claiming that it overpaid PPA by P3.0 million. The case is still
pending at the Court of Appeals. It is unlikely that this will be
settled within the year but unfavorable decision is expected in the
future.
COLA Cases These are two cases filed by PPA employees for the
payment of COLA back pay and the continuous payment of COLA
to incumbent including former employees. Both decision of the
RTC were not favorable to PPA. The agency filed a petition for
certiorari, while PANTALAN (employees union) filed its comments
to the petition. This case is now pending at the Supreme Court.
Arnel Dilay Diaz vs. PPA This is a legal case involving claim for
damages on the property asserted owned by Mr. Diaz which was
affected when the Authority implemented the construction of
the Batangas Port Development Project Phase I. The case is still
pending at the Regional Trial Court.

59

BOARD DIRECTORS

JOSE P. DE JESUS

JUAN C. STA. ANA

Government Posts
Executive Director of the Career Executive Service Board under
the Civil Service Commission during the administration of
President Marcos
Director and Senior Vice President for Operations and later on as
President, Development Academy of the Philippines
Undersecretary, Department of Education, Culture & Sports under
President Corazon Aquino
Secretary for the Department of General Services, Presidential
Coordinating Assistant for Human Resources and Public Welfare
and Chairman of the Presidential Task Force on Post-Earthquake
Rehabilitation, under President Corazon Aquino
Public Works Secretary under President Corazon Aquino and during
the time of President Fidel V. Ramos.
Appointed Secretary, DOTC by President Benigno S. Aquino III

Private Positions
Vice-President of the Private Development Corporation of the
Philippines President and Chief Operating Officer of
Meralco Corporation.
Member of the board of management of the Asian and Pacific
Development Center (APDC)
Member of the Board of Directors and later as Executive
Vice-President of he Philippine Long Distance Co.
t
Chairman of the privatized Manila Waterworks & Sewerage System
Chairman of the Manila North Tollways Corporation

Government Posts
Project Officer & Coordinator of the Human Settlements
Regulatory Commission
Division Manager of the Regulatory and Legal Affairs Division and
later as Manager of the Port Operations Services Department,
Port District Manager of PDO Manila, Acting Assistant General
Manager for Operations, PPA
Executive Director of the Office of Transportation Cooperatives
under the Department of Transportation and Communications
Corporate Board Secretary to the Manila International
Airport Authority, Philippine National Lines, Philippine National
Railway, Toll Regulatory Board and the Maritime Industry Authority.
Member of the Board of Philippine National Lines,
Philippine National
Railway, Toll Regulatory Board and the Maritime Industry Authority.
Appointed by President Benigno S. Aquino III in July 2010 as
General Manager of PPA

Chairman, PPA Board of Directors


Secretary, Department of Transportation and Communications (DOTC)

GREGORY L. DOMINGO

Member, PPA Board of Directors


Secretary, Department of
Trade and Industry (DTI)


Government Posts
Appointed as Undersecretary of the Industry and Investment Group,
DTI President Arroyo
Appointed as Secretary, DTI by President Benigno Aquino III

Private Positions
Started out in various financial institutions in Philadelphia,

Pittsburgh and New York, such as the First Boston, Drexel Burnham
Lambert and Mellon Bank

60

Vice-Chairman, PPA Board of Directors


General Manager, Philippine Ports Authority

Private Positions
Senior Vice President of F.F. Cruz & Co., Inc.
Executive Vice President of F.F. Marine Corp.
Vice President of F.F. Shipping Corp.
Vice President, Freyssinet Filipinas, Inc.
Vice President, Filmetrics Corp.
Vice President, Philipps Technical Consultants Corp.
President, Forex Hongkong, Forex Britania, Ltc., Forex Singapura
President, Sta. Ana Aggregates Corp
Served as member of the Board of Directors to
St. Bernard Service Corp., Pantranco South Express Transport Corp.,
Fil-Transit Bus Corp., Manila City Bus Corp. and Pasvil Liner

CESAR V. PURISIMA

Member, PPA Board of Directors


Secretary, Department of Finance
(DOF)

Government Posts
Secretary of the Department of Trade and Industry under
President Arroyo
Secretary of the Department of Finance under President Arroyo
Chair and Board Member of National Power Corporation, Land Bank
of the Philippines, and Monetary Board (Bangko Sentral ng Pilipinas)
Appointed as Secretary of DOF by President Benigno Aquino III
Private Positions
Member of Global Board of Andersen Worldwide
Head, Asia Pacific Assurance Practice of Andersen Worldwide and
ASEAN Operation
Member, the Global Executive Board of Ernst & Young
Member, Management Association of the Philippines, Philippine
Institute of Certified Public Accountants, Philippine-France
Business Council, Philippine-Thailand Business Council and the
MakatiBusiness Club

RAMON J.P. PAJE

Member, PPA Board of Directors


Secretary, Department of Environment
and Natural Resources

Government Posts
Junior Forester, Bureau of Forest Development (now Forest
Management Bureau) and later as Assistant Secretary for
Management Services and Director for Human Resources
Development and Undersecretary for Field Operations and
Programs Development, DENR and concurrent Executive Director of
the Minerals Development Council under the Office of the President
Appointed Secretary of DENR by President Benigno Aquino III
Awards & Distinctions
Ten Outstanding Young Men (TOYM) from the Philippine Jaycees
Outstanding Professional of the Philippines from the Professional
Regulation Commission
Outstanding Alumnus in Government Service from the University of
the Philippines at Los Baos
Dr. Jose Rizal Huwarang Pilipino Awardee for public service
given by the Parangal ng Bayan Awards Foundation

CAYETANO W. PADERANGA, JR.


Member, PPA Board of Directors
Director-General, National Economic
and Development Authority NEDA)

Government and Private Posts


Deputy Director General and later as Acting Director-General before
being appointed by President Corazon Aquino as Secretary of Socio-
Economic Planning and Director-General
Appointed as Secretary of Socio-Economic Planning and Director-
General by President Benigno S. Aquino III.
Served as Chairman/Vice-Chair/Economic Adviser/Board Member
of a number of government and private corporations as well as
private/corporate/educational foundations and other private
organizations (more than 50) such as the Philippine Chamber of
Commerce and Industry, Monetary Board (Bangko Sentral ng
Pilipinas), Asian Development Bank, Bank of the Philippine Islands,
Philippine Stock Exchange, ASEAN Foundation, among others.

Member, PPA Board of Directors


Secretary, Department of Public Works
and Highways (DPWH)

Government Posts
Systems Analyst and later as Assistant Director/Resident Manager,
Development Academy of the Philippines
Presidential Staff Director, Director IV, Assistant Executive Secretary
and Presidential Assistant I, Office of the President
Vice Chairman/Executive Vice President and later Chairman/

President of the Bases Conversion Development Authority
Senior Vice President of Fort Bonifacio Development Corp.
Chairman of the Board of John Hay Poro Point Development Corp.
Board Member for the Subic Bay Metropolitan Authority,
the National Power Corporation and the Metropolitan Waterworks
& Sewerage System
Appointed as Secretary, DPWH by President Benigno Aquino III

Private Positions
Senior Vice President of Citadel Holdings, Inc.
President & Chief Executive Officer of Maynilad Water Services

ROGELIO L. SINGSON

EMERSON M. LORENZO

Member, PPA Board of Directors


Administrator, Maritime Industry
Authority (MARINA)

Government Posts
Instructor and researcher specializing in economic and transport
geography and later as faculty member of the UP Department
of Geography
Senior Research Assistant and later as Director in June 1993
IMO Consultant for two (2) ASEAN projects
Appointed as MARINA Administrator by President Benigno Aquino III

Ms. Noemi L. Saludo

Private Sector Representative,


PPA Board of Directors

Past President - Port Users Confederation of the Philippines


Former and First Woman President Philippine Chamber of

Commerce and Industry
President Pinkerton Computer Consultants, Inc.
Chairperson and President Philippine Integrated Exporters, Inc.
Chairperson Common Bonded Warehouse Operators, Inc.
Founder Bahay ng Diyos Foundation
Awardee- Agora Award of the Philippine Marketing Association

Atty. FRANCISQUIEL O. MANCILE


Corporate Board Secretary/ Manager,
Legal Services Department, PPA

Government Posts
Senior Corporate Attorney and later as Chief Corporate Attorney,
Division Manager and Acting Department Manager of the
Legal Services Division, PPA
Acting Port Manager of PMO Legaspi

61

EXECUTIVE OFFICERS

Juan C. Sta. Ana


General Manager

62

Hector E. Miole
David R. Simon
Tomas B. Carlos
Raul T. Santos

Assistant General Manager,


Operations Office

Assistant General Manager,


Engineering Services Office

Assistant General Manager,


Finance, Legal and
Administration Office

Assistant to the General Manager,


Corporate Affairs
and Special Projects

DEPARTMENT MANAGERS

Engineering
Service Office

Finance Legal and


Administration Office

Office of the
General Manager

Carlito M. Castillo
Facilities Construction &
Maintenance Dept.

Rosalia G. Banson
Controllership Dept.

Ma. Asuncion Hiyasmin H. De Los Santos


Internal Control Dept.
Elizabeth C. Follosco
Management & Information
Systems Dept.
Amelia M. Aquino
Strategic Planning Dept.

Operations Office
Roberto C. Aquino
Port Operations &
Services Dept.
Emma L. Susara
Commercial Services
Dept.
Madeleine C. Abada
PPA Training Center
Jesus V. Tolosa
Port Police Dept.

Rolando K. Perez
Harbor Maintenance Dept.
Romelo T. Mascaria
Project Development Dept.

Virginia G. Quina
Treasury Dept.
Lilian T. Javier
Human Resource Management Dept.
Virginia S. Valero
Administrative Services Dept.
Francisquiel O. Mancile
Legal Services Dept.

63

Port District Office/


Port Management Office Managers
Constante T. Farias, Jr. PDO Manila/Northern Luzon

Efren B. Bollozos

Edgar C. Pilar
Winfred G. Elizalde.
Silverio D. Mangaoang, Jr.
German P. Tuguigui

Necitas G. Layola, Jr.


Noeme W. Calderon
Oscar M. Beluan

Isidro V. Butaslac, Jr.
Efren A. Quiones

Hector E. Miole

PDO Southern Luzon

Leopoldo Biscocho, Jr.


Rosenda G. Sumagaysay
Adelaida C. Hernandez

Victor A. Arellano
Fernando B. Claveria

PMO South Harbor


PMO North H arbor
PMO San Fernando
PMO Limay

PMO Batangas
PMO Legazpi
PMO Puerto Princesa
PMO Calapan

PDO Visayas

Renato T. Tolinero
Luis A. Cuison
Dominador D. Licayan

Enrique H. Fuentebaja
Glenn G. Cabaez, Jr.

Manuel A. Boholano

PMO Dumaguete
PMO Iloilo
PMO Tacloban
PMO Pulupandan
PMO Ormoc
PMO Tagbilaran

Christian V. Santillan

PMO Cagayan de Oro


PMO Iligan
PMO Nasipit
PMO Surigao
PMO Ozamiz

PDO Southern Mindanao

Christian V. Santillan
(concurrent)
Liberto C. De La Rosa
Liberto C. De La Rosa

(concurrent)
Roger B. Asprer
Leonilo E. Miole

Port of Cagayan de Oro

64

PDO Northern Mindanao

PMO Davao
PMO General Santos
PMO Cotabato
PMO Dapitan
PMO Zamboanga

Head Office

Bonifacio Drive, South Harbor, Port Area, Manila 1018


Telephone No.: (0632) 527-8356 to 83
Fax No: (0632) 527-4855
Webpage: www.ppa.com.ph
Port District Office of Manila/Northern Luzon
PNR Building, South Harbor,
Port Area Manila 1018
Telephone No.: (0632) 525-5264
Fax No.: (0632) 301-9042
Email: ppa_manila@ppa.com.ph
Port District Office of Southern Luzon
MARSMAN Building,
Muelle de San Francisco St.,
South Harbor, Port Area, Manila 1018
Telephone No.: (0632) 301-9577
Fax No.: (0632) 301-9679
Email: pilosoluz.msd@gmail.com

Port District Office of Visayas


CIP Complex, Cebu City 6000
Telephone No.: (032) 232-3401 to 04
Fax No.: (032) 232-1990
Email: ppa07@bukid.cvis.net.ph
Port District Office of Northern Mindanao
Port Area, Agora Gate,
Cagayan de Oro City 9000
Telephone No.: (088) 856-2819
Fax No.: (088) 856-2820
Email: pilonomin@yahoo.com
pilonomin@philwebinc.com
Port District Office of Southern Mindanao
Km 10, Port Area, Sasa, Davao City 8000
Telephone No.: (082) 233-2080 to 82
Fax No.: (082) 234-0079
Email: ppasomin@pldtdsl.net
ppasomin@mozcom.com

Port of Iloilo

Prepared by:
Monitoring and Evaluation Division,
Concept, Design, Photography and Printing:
Mode Matrix Manila, Inc.

Strategic Planning Department


Tel. Nos.: 527-4755 & 301-0545
Email: amie@ppa.com.ph

annual
r e p o r t

www.ppa.com.ph

Bonifacio Drive, South Harbor


Port Area, Manila, 1018 Philippines
P.O. Box 436, Manila, Philippines
Tel. No. (0632) 527-8356, Fax: (0632) 527-4855

Steering the Right Course through Best Practices