CPA ready to discuss revenue sharing agreement with Cebu LGUs

Local

THE Cebu Port Authority (CPA) is ready to sit down with local government units (LGUs) in connection with revenue sharing.

CPA General Manager Francisco Comendador told members of the Cebu Provincial Board that he is open to more dialogues to discuss how profits collected from ports are being divided by the authority and host LGU.

This came after the provincial board asked the CPA to share the collected revenues with LGUs, including those that do not have direct operations in the ports in their municipalities.

Comendador said that when he assumed office in 2023, sharing arrangements have already been established.

"If karon ang panahon nga ato nang usbon, pwede kaayo. Maminaw mi ninyo kung asa ta magkahiusa dihang dapita," Comendador assured the board members.

During the June 15 regular session, Board Member Raymond Joseph Calderon questioned why the sharing arrangement between the CPA and various LGUs is not the same.

CPA reported revenue-sharing arrangements for ports under the different Port Management Offices (PMOs), such as Taloot Port in Argao, Mainit Port in Oslob, Danao Port, Carmen Port, Poro Port, Hagnaya Port, Santa Fe Port, and Pilar Port, wherein the CPA collects 100% of the revenue while the LGUs receive none.

Meanwhile, in Polambato Port in Bogo City and Kawit Port in Medellin, the CPA collects 50% of the revenue while the other half goes to the LGUs.

CPA officials explained that if the authority invested in the operation of the port facility alone, it collects 100% of the revenue.

LGUs receiving 50% share of the collections is covered by a memorandum of agreement (MOA).

Comendador said they are open to changes in the revenue-sharing agreement, especially if the LGU is willing to operate the port.

"So I think it's about time kung gusto gyud ta nga ma-uniform ang tanan, if mao nay gusto sa uban, but of course there are some responsibilities nga nakasalalay especially sa Bogo. I think naa ni silay kaugalingong counterpart nga sila gyud mismo mi-invest, ang CPA ni-invest, mura'g hybrid," Comendador said.

"Mao na nga naay lain-laing sharing. If sila ra gyud mogasto, there may be changes. But for those LGUs with ports and then 100% ang naggasto ang CPA, mao na nga 100%," he added.

Comendador also explained that there are instances when the yearly allocation for a certain port is not that big, depending on its operations.

"Sa tinud-anay, duna sad instances nga ang atong pondo itan-aw ba nga kinsa tong mga pantalan nga responsive sa panginahanglan. Mao na usahay ang paghatag nato og allocation nagdepende sa lugar nga medyo kusog ang traffic, or duna gyud potential. But for those pantalan nga hinay-hinay unya dili major ang iyang problema, mao na medyo dili gyud yearly ang iyang allocation," Comendador said.

Calderon argued that those LGUs with no direct operation of the ports also have indirect contributions to port operations, such as security, garbage collection, among others.

He asked the CPA if it could share a small portion of its collections.

The same sentiment was shared by Board Member Nilo Seno of the lone district of Mandaue, who said that under CPA's charter, the authority is not obliged to share its revenues with LGUs but it is not also prohibited from doing so.

He cited the Local Government Code, which established local autonomy, equitable sharing, and all the benefits supposedly afforded to the inhabitants and constituents of LGUs.

"Even without the direct participation in port operations, as dictated by the principle of equitability and fairness, they should also be compensated in some sort. I think you should consider this. I am appealing to you on behalf of all the LGUs," Seno said.

Comendador said that while he understands the sentiments of local officials, he noted that there are some limitations due to by-laws and policies that need to be considered for checks and balances.

He said the proposals of the board members must be tackled thoroughly to come up with a fair agreement.(MyTVCebu)