(top) Zamboanga Dapitan staff (above); B. Asprer with his PMO with his PMO Asprer B. 18 22 34 36 38 42 Opposite page: PortOpposite of This page: Manager Roger This Statistics Port Development and Maintenance and Development Financial Performance Financial Locally Funded Projects Funded Locally

PPA Performance at a Glance a at Performance PPA Independent Auditor’s Report Auditor’s Independent Sustainability., Environment & People & Environment Sustainability., New PPA Vision, Mission and Corporate Values Values Corporate and Mission Vision, PPA New Manager General the of Message Performance Trade and Shipping Services Port Infrastructure Physical Financial Statements Financial Statements Financial to Notes Directors of Board Officers Executive Managers PDO/PMO Managers Department Directory Completed and Ongoing and Completed 01 02 04 08 12 43 47 58 60 62 63 IBC Our Cover of radiating that – design cover The wholeness unity, – symbolizes circles enhancing the towards of PPA and focus as they go about of its clients experience of its availing doing business with PPA, services using its facilities. and text Interspersed with the images are to relating testimonials client blocks from interlinkingThe the performance of PPA. pattern of images and texts on a circular of an appealing representation provides embed striving to as an organization PPA in experience the goal of enhancing client preparation. its plans and program

PHILIPPINE AUTHORITY ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 2 Zamboanga of Port a model corporate agency ofthegovernment.”a modelcorporate agency communities andtheenvironmentport andbe sustaindevelopment inourports, ofour services “We commit to provide reliable and responsive Mission Corporate Values connectivity, safety andsecurity”. sustained productivity, efficiency, comfort, shallexperience fulland in ourports 2030,customersBy doingbusiness Vision Teamwork: Synergy of Working Together CommitmentSincerity: to FulfilMandate Bounds withinMoral Ethics: Integrity Accountability,Responsibility: Taking Innovation,Creativity: Adaptability andManagingRisks

1 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY competitive and at par with services and at competitive bigger the country’s at prevailing is but one facade of This airports. of our enhancing the experience particularlyclients, the passengers our ports. through who transit growth lukewarm economic The generated PPA notwithstanding, of P 8.524 billion, or a revenues gross over of 2.75 percent modest increase from with revenues year, the previous a 3.13 port registering operations or an increase improvement percent 2011 ended We of P253.69 million. of P 1.150 billion, with a net income As more Filipinos travelled by air and air and by travelled Filipinos more As promotional of consistent availed budget airline carriers, by offered fares a 6.10 suffered passenger volume decline The decline in 2011. percent correction as of a technical can be more to reverted have may passenger traffic from after coming average its historical the with Consistent an election year. Management your thrust of the DOTC, the on elevating has put a premium in facilities and amenities, standards and adoption of including the provision security and ISPS compliant equipment our passenger terminal at procedures, remain to buildings (PTBs) nationwide growth and success. and growth General Manager General anchored on durability, on durability, anchored of our over 2000-strong 2000-strong of our over With solidarity and focus solidarity and focus With Message of the Message our stakeholders and Board and Board our stakeholders on our corporate vision, the on our corporate to seeing a PPA continuously continuously seeing a PPA to of Directors, we look forward look forward we of Directors, dedication and perseverance and perseverance dedication workforce and the support of workforce I am pleased to report a I am pleased to despite that and environment global economic weak the country for growth economic a tepid its maintained in 2011, our organization performancesteady volume as cargo or an increase 7.14 percent by advanced with of about11.88 million metric tons, rising by cargo domestic and foreign The respectively. 6.27 and 7.77 percent, generated was improvement volume one of a lot of factors, a combination by of which is the exportation of mineral ports the private at ores under PMOs the While Surigao and . export in foreign growth 22.39 percent hopeful remain we is encouraging, cargo in cargo trend upward of a continuing all for years in the coming throughput The Management Port Offices (PMOs). TEUs in cargo containerized picture for bright as both domestic also remained cargo containerized and foreign in an resulting performed favorably in 2011. expansion 9.67 percent overall

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

2 2 responsibility, ethics, and sincerity to ourcorporate values ofcreativity, we have endeavoured to stay close our clients’ experience at ourports, safety andsecurity. enhancing In efficiency, connectivity, comfort, of fullandsustainedproductivity, business withustheexperience of providing our customers doing consistent withournewvision ports at developing andimproving our We targeted pursuedin2011projects billion, to beexact. in2011orP104.781 P100 billionmark GOCCs asits Total Assets breached the PPA now joinstheP100billion leaguer nationwide,various capitalprojects As expected, withthecompletion of maintenance andoperating expenses. year agofigure asaresult ofhigher about 22.92percent lower thanthe practices in port operations such as: inport practices inpursuitofbest major undertakings We have continuously on embarked and execution. inallstagesofplanning,projects design contracted physical infrastructure ofour but through closersupervision here and abroad of our pool of engineers only through buildingboth capacity not field ofcivilworks andconstruction touch with current technology inthe willstrive toEngineering Office stay in physical andeconomic lives. Our protocol targeted their at preserving routine andpreventive maintenance physical assets, we have adopted both capacity. With anexpanded baseof operational areas andpassengerseating capacity,of increased berth storage/ generated positive results interms at acost ofP1.56billionwhichhave Term Public Investment Program (MTPIP) contained inourapproved Medium- completion ofabout41capitalprojects Thus, we capped2011withthe accountability indealingwiththepublic. espoused paradigm and oftransparency by thenational government inits teamwork -thesamevalues promoted success. anchored ondurability, growth and forward to seeingaPPA continuously and Board ofDirectors, we look ofourstakeholders and thesupport of ourover 2000-strong workforce the dedication andperseverance and focus onourcorporate vision, long years ahead. With solidarity ourgainsthroughpreserve many be surmounted aswe guard and even greater challengeremains to inmany fronts.opportunities An for success andawellspring of provided uswiththetemplate and processes now inplace have coupled withthesystemsefforts hardOur work andconcerted oftheprivate sector.participation Expanded Port Zone) withthe Terminal Harbor andSouth inManila of majorfacilities(, Bulk Units;and,Over (iii)Development operations handledby Special Take- of biddingcargo handling (PTB) operations; (ii)Completion of (i)Passenger Terminal Building government, specificallyintheareas Private Partnership schemeofthe initiatives inlinewiththePublic operations; and, privatization ofPTB as anintegral part of frontline operations; e-ticketing System (PSHEMS);computerization and Environment Management adoption ofPort Safety Health with thePhilippine Coast Guard; Traffic System Management (VTMS) procedures; joint operation of Vessel vessel entrance andclearance (VEC) on the firstto beISO-certified gateways, withBatangas Port being forQMS) Certification ourmajor Systems Management Quality (ISO International Standards Organization General Manager Atty. JUAN C.STA. ANA

3 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Port of page: Port of General This Handling page: Cargo Opposite Dapitan at PMO Activities (top); Port (bottom) and at Legaspi “The picture for containerized cargo in TEUs also TEUs also cargo in containerized for “The picture foreign and as both domestic bright remained resulting favorably performed cargo containerized 2011.” in percent expansion overall 9.67 in an

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

4 4 Shipping & shown on the next page.shown onthenext posted a7.14 percent favorable improvement as in 2011,total cargo volume handlednationwide Despite thetepid 3.7percent economicgrowth Trade Performance Cargo CARGO, PASSENGER ANDSHIP TRAFFIC increased by 6.08 percent. rolled coilsandcocooil, etc. Overall, foreign cargo such asmineralores, ores, nickel limestone, cold commodities export the higherdemandofprime tocontributed theincrease inforeign is export 22.39percent. by ahefty that The majorfactor andaccelerated showed adynamicperformance component by 3.22percent in2011,theexport -foreign droppedeconomic activities import indicator ofthevolumeWhile abenchmark of 7.77 percent, respectively. up by 4.38MMT or6.27percent and7.51MMT or domesticandforeign Both the ports. cargo went more intense movement ofcargo passingthrough 11.88 MMT compared to previous year, signifying a postinganincrement of tons (MMT), million metric Total cargo rose to arecord volume of178.278 Cargo Trade Performance

5 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY MICT & SH 54.52% Distribution of Cargoes Containerized 1 1 Passengers number of passengers total During year, the transportation of water availing declined by volume or 3.31 million. Passenger 6.28 percent of 49.485 reverted the historical average to million because of the expected technical 2010 which is an to correction, compared Both domestic and foreign election year. Of of containers handled in volume the total TEUs or 54.52 ports,Philippine 2.69 million the ports passed through percent of MICT South Harborand PMO (which includes the in foreign combined share The Terminal). container traffic of these two ports slightly in or 2.96 percent 0.07 MMT by accelerated 2011. Other Ports 45.48% 20 % 0.74% 6.48% 4.11% 5.29% 6.27% 7.77% -1.38% -6.09% -3.22% 9.67% 7.14% 17.31% 22.39% -1.31% -6.10% -21.20% Inc/(Dec) 80 91,674 59,377 (4,625) (4,545) 283,807 151,051 (13,569) Volume 434,858 9,285,322 4,375,040 7,507,842 (3,203,075) (1,777,480) 11,882,882 (3,216,644) 2010 10,798 64,019 335,202 346,000 1,414,274 1,443,501 1,639,859 2,857,775 4,497,634 52,637,626 41,467,192 55,131,588 69,796,900 96,598,780 52,701,645 166,395,680 Cargo Throughput, Container, Passenger & Ship Calls Ship & Passenger Container, Throughput, Cargo 2011 10,878 50,450 330,577 341,455 1,505,948 1,502,878 1,923,666 3,008,826 4,932,492 49,434,551 50,752,514 53,354,108 74,171,940 104,106,622 49,485,001 178,278,562 Cargo Cargo Export Export Import Import CY 2011 2011 1: CY Table Foreign Foreign Foreign Foreign (m.m.t) PMO Zamboanga Zamboanga PMO page: This in (right);and Port of Virac (below) Catanduanes (in TEUs) (in Shipcalls Domestic Domestic Domestic Domestic Container Container Passenger Container traffic continued its strong showing during showing the year traffic continued its strong Container a notable 9.67 percent TEUs, 4.93 million of a total as it reached expanded Domestic container cargo last year. from improvement grew cargo containerized while foreign 17.31 percent by impressively 5.29 percent. by robustly Containers (in TEUs)

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

6 6 Containerized Cargoes of Distribution for economicsofscale. vessels callinginrecent ports years atthecountry’s Less corroborates frequency withbiggerandlarger percent andthelatter increasing by 0.74percent. opposite directionwiththeformer decliningby 1.38 last year. andforeign Domestic shipcallswent the a slightreductionof1.31percent compared to 341,455vessels in2011, serviced ports The country’s Ship Calls percent, respectively. passengers dwindledby 6.09percent and21.20 Photos: From top to bottom, 1)PMO Davao; (2) cargo handlingofCopra atMasbate Port; and (3) Port ofGeneraland (3)Port Santos

7 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Asean Business Park, Business Park, Asean Reclamation Area, Bay, City Parañaque Kamanga, Maasim, Brgy. Saranggani Province Jubasan, Carrascal, Brgy. Surigao del Sur Bon-ot, Carrascal, Brgy. Surigao del Sur San Fabian, Tiblong, Brgy. Jublasan, Allen, Brgy. Northern Samar Bagumbayan, Brgy. Camarines Norte Paracale, Location Services

Company Inc/Development Alphaland Alphaland Corporation Conal Holdings Conal Corporation CTP Construction & Mining Corp. MiningMarcventures & Development Corporation Pryce Gases Inc. Santa Clara Shipping Corporation Uni Dragon Mining & Dragon LEASE CONTRACTS of 4 the applications approved PPA of yearend, As namely:companies Corp.; PNOC Exploration and Manufacturing Osamco Corp. Corp.; Cargo Port & Managers Corp. Movers

CLEARANCE TO DEVELOP PRIVATE PORTS PRIVATE DEVELOP TO CLEARANCE has approved 2011, the PPA of end of December As port of private Develop to facilities in favor Clearance corporations: (7) private seven the following Port

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

8 8 standards infacilities andamenitiesatourpassenger terminal buildings (PTBs) nationwidetoremaincompetitive andatpar with services prevailingat thecountry’sbigger airports.” “Your Management hasputapremiumonelevating the Ozamis, still a busy port even atnight(top) Ozamis, stillabusyport This page:Newlyinstalledweighbridge at PMO Legaspi; Opposite page: PMO

9 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Location Port of San Juan, Batangas Port of Benoni, , Province Camiguin Port of Benoni, Mahinog, Port of Poctoy, Odiongan, Romblon Port of Poctoy, Port of Bataraza, Buliluyan, Bataraza, Palawan Port of Taytay, Taytay Palawan Taytay Taytay, Port of Port of , Brgy. Baja, Rizal, Palawan Port of Rizal, Brgy. Port of Nasugbu, Batangas Port of Nasugbu, Port of Pio Duran, Albay, Legazpi Duran, Albay, Port of Pio Port of San Jose de Buenavista, Antique Port of San Jose de Buenavista, Port of Basco, Batanes Port of Basco, Port of , So. Leyte Port of Maasin, So. Port of Larena, Siquijor Port of Larena, Port of Brooke’s Point, Palawan Point, Port of Brooke’s Port of Maguinoo, City Calbayog Port of Maguinoo, Port of San Jose, NorthernPort of San Jose, Samar Port of Tapal, Tapal, Port of Port of Danao, Escalante, Negros Escalante, Port of Danao, CARGO HANDLING SERVICE CONTRACTS & PERMITS CARGO HANDLING SERVICE CONTRACTS handling permits/contracts AuthorityThe issued 17 cargo various to varying have 5 6 months to Contractsfirms. awarded durations from Memorandum a 3 year of Agreement signed In addition, PPA years. ports: the following operate to Government Units (LGUs) with 3 Local (Port of Silanga, LGU-Tangub Leyte); (Port of Bato, LGU-Bato (Port of Aparri, Cagayan). City) and LGU-Aparri Safe Harbor Company & Stevedoring Arrastre Safe Balbagon Arrastre Stevedoring & Porterage Services & Porterage Stevedoring Balbagon Arrastre Odiongan Integrated Arrastre & Stevedoring Services & Stevedoring Odiongan Arrastre Integrated Corporation Dumara-og Services & Stevedoring Arrastre Polaris Stevedoring Services Stevedoring Polaris Estrella del Sur Arrastre Stevedoring & Allied Services Stevedoring del Sur Arrastre Estrella Cooperative MVM Stevedoring & Arrastre Services & Arrastre MVM Stevedoring West Coast Cargo Handlers & Stevedoring Services Handlers & Stevedoring Cargo Coast West Antique Cargo Handling & Port Terminal Services Inc. Terminal Handling & Port Antique Cargo Batanes Merchants ServicesBatanes Merchants Cooperative Panaon Arrastre Services, Arrastre Inc. Panaon Prudential Customs Brokerage Services, Customs Inc. Prudential Prudential Customs Brokerage Services, Customs Inc. Prudential Samaneros Integrated Cargo Handling Services, Handling Cargo Integrated Inc. Samaneros San Jose United Arrastre & Stevedoring Services, & Stevedoring Arrastre San Jose United Inc. Tarsier Arrastre & Stevedoring Services, & Stevedoring Arrastre Inc. Tarsier Tarsier Arrastre & Stevedoring, Inc. & Stevedoring, Arrastre Tarsier Cargo loading (top); loading (top); Cargo Photos: at the and built-in weighbridge GenSan of PMO main entrance 6-Month Holdover Authority (HOA) Authority 6-Month Holdover 1 Company 1-Year HOA HOA 1-Year 1 2 1-Year Permit to Operate to Permit 1-Year 1 2 3 4 5 5-Years Cargo Handling Contract Cargo 5-Years 1 2 3 4 5 6 7 8 9

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

1 0 1 0 Cargo handlingoperations ofLegaspi atthePort Zambales, were given to operate specialpermits alllocated Inc., inBarangay Bolitoc,Minerals Sta.Cruz, Corp.; Corp., Archipelago DMCIMining andInternational A3UnaMining 3companiesnamely: . Likewise andfive (5)underSouthern Mindanao under Northern Luzon);under Southern four (4)under ; (2) two Luzon;(6) were eight(8) underPDOManila/Northern to ofwhichsix operatepermits corporations to various ofregistration/ issued25certificates 2011,theAuthority In PERMIT TO OPERATE CERTIFICATE OFREGISTRATION / at Virac (right) Port passengerterminal newly-constructed and and cargoes (left); Port San atGen Photos: MobileX-ray forcontainer vans regular pilots and 4 probationary pilots.regular pilotsand4probationary nationwide. Appointed were 5chiefpilots, 8 appointments for thedifferent pilotagedistricts pilot issued17harbor The Authority HARBOR PILOTS Weighbridge operations Port atMatnog

1 1 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Top-view of port; page: Top-view This page: Repairs and Opposite both being done, maintenance Dapitanat PMO “We capped 2011 with the completion of about 41 capital projects capital projects of about 41 with the completion 2011 “We capped Program Investment Public Medium-Term approved in our contained positive have generated billion which of P 1.56 at a cost (MTPIP) storage/operational berth capacity, increased in terms of results seating capacity.” areas and passenger

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

1 2 1 2 Physical Infrastructure climate. users, buoyed byof port thefavorable economic planning to address indemand anticipated rise facilities oflong-term building measures are part in2011,thesecontinuingphysical capacity started over thatof2010. Together withongoingprojects tons cargo in2011 11millionmetric borne ofnearly They have madepossibleanincrease inwater 1,166 additionalpassengerseatingcapacity. length;154,941sq.m. ofback-up area;berth and towardscontributed anincrease of672meters in its administration.Projects completed in2011have under improvementand productivity oftheports infrastructure projectsgeared towards thecapacity under theDOTC, haslinedupport theAuthority sector Consistent withthethrustsoftransport condition and operating 24/7. Maintenance condition andoperating24/7.Maintenance facilitiesinserviceable program port to keep to adoptasustainablepreventive maintenance hasendeavouredbillion asof2011,theAuthority accumulate withfixed assetsreaching more than93 As investments inphysical facilitiescontinueto Development & Maintenance

3 1 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY

Locally-Funded Projects Locally-Funded

Distribution of 1 1 20 Port of Virac Port of Virac Photos: (right);and Port of (below) Davao PDO Southern Luzon, as in previous years, had the years, as in previous PDO Southern Luzon, with capital investment of the total biggest share Visayas PDO by followed P1.11 billion or 33.95 percent, PDO Northernwith P727.26 million or 22.19 percent; Mindanao PDO with P589.40 million or 17.98 percent, Manila/Northern with P533.84 million or 16.29 Luzon and PDO Southernpercent Mindanao with P314.46 million or 9.59 percent. As partAs of its capacity and productivity improvement of P3.28 in 2011 a total implemented , PPA program, 47 projects as follows: nationwide 104 LFPs billion for portsVisayas and 36 ports, 21 projects for Luzon for Mindanaoprojects for ports. Of 41 Locally-Funded this, completed. P1.56 billion were amounting to Projects Other projects worth P1.72 billion which had already 1 35 ongoing, been started on various i.e. stages were as of yearend. suspended and 27 under procurement, Completed and Ongoing Locally-Funded Completed and Ongoing Locally-Funded Projects (LFPs) dredging programs under privatized set-up were were set-up under privatized programs dredging likewise undertaken availability of safe ensure to depths at the portswater as complementary routine measures. engineering

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

1 4 1 4 contractor. the privatized set-up withF.F. Cruz&Co. asservice nationwide andwasimplemented under 12 ports the removal of1.89 millioncubicmeters ofsiltsfrom its CY2011Dredging Program. The amountcovered PPAat theports, allotted someP641.89millionfor To ensure thesafe navigation oflarge vessels calling Dredging Operations P375.91million andP150.03million,respectively. Project andtheOzamizPortExpansionProject costing include the Port Improvement/Rehabilitation ongoingprojectsasofyearendSystem). Big-ticket Back-up Area Causeway, andRock andPortLighting Pier,(consisting ofRC andRC Roro Ramp Wharf, Project Port,Batangas ofSanJose andtheconstruction Harbor,of South theCagayan deOro PortImprovement the upgrading atthesouthside ofexistingbreakwater infrastructure projectscompleted withintheyear are Among thebigCapital Expenditure Program (CAPEX) delineation. development andidentification ofareaszone for port planning, project port to support and undertaken ofthe calendaryear and31were unprogrammedstart werefour programmed (34)ofthesesurveys the during and completed in2011. wasundertaken Thirty- surveys (65)hydrographicA total ofsixty-five andtopographic Hydrographic andTopographicSurveys I.C.P.C., from 2010) (carry-over Baseport, from 2010) Phase I(carry-over RiverMouth, Iloilo from 2010) Phase II(carry-over Batangas Baseport, from 2010) Anchorage Harbor (carry-over South overleading to Piers from 2010) 3&5(carry Fairway Harbor South Channel overleading to Piers from 2010) 9&13(carry Fairway Harbor South Channel Fort Pedro, San Iloilo Wharf, Phase II Piers Harbor South 3&5,Berths Fairway Harbor South Channelleading to Pier 15 Entrance Harbor South Channel Pier Harbor Slipway 16/Marine North Areas Covered by 2011Dredging CY terminal at PMO Dapitan terminal atPMO Dapitan Photos: from (Clockwise top left) RepairsatPMOtop left) constructed passenger GenSan; andnewly GenSan;

5 1 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Repair and Maintenance Program and Maintenance Repair the serviceability maintain of existing and safety To billion P1.34 allocated port PPA facilities nationwide, for (R&M) program maintenance and its repair for CY 2011. Of or 39.56% this amount, P530.48 million million or P225.67 projects, repair for allotted were or P560.66 million projects, maintenance 16.83% for carry-over completing similar 41.81% for and projects Head Office P2.50 million or 0.19% for GAD Projects, and P21.70 (E/A) Funds & Administrative Engineering projects. other unprogrammed million or 1.62% for Of projects pursued and maintenance the 186 repair ongoing 31 are completed, 96 were during the year, PDO stage. under pre-procurement and 59 are of the biggest allotment received Southern Luzon 72 projects, the R&M Budget at P615.02 million with million, 45 projects), (P245.31 Visayas PDO by followed PDO Southern Mindanao (P199.02 million, 25 projects), PDO million, 25 projects), (P145.75 and PDO Manila/Northern (P111.71 million, 19 Luzon projects). Estimated Estimated (Php) Cost 7,820,000.00 220,000.00 247,000.00 650,000.00 4,300,000.00 235,000.00 920,000.00 2007 2007 2008 2011 2011 2011 2007 Acquisition Leica GPS (Global GPS (Global Leica System) Positioning TCR Station Total Brand 1203, Leica Station, Horizon Total 3 NAV Hi-Target HD 370 Echosounder GPS Trimble, Civil 3D AutoCAD 2012 (Software) Survey Software HYPAK Description (From top to bottom) bottom) to top (From Photos: Ongoing of the construction Building Terminal Passenger Port;of Masbate RORO Ramp at Port of San Legazpi; Andres, and newly installed seats at of Terminal the Passenger Bulan Port, Sorsogon 1 2 3 4 5 6 7 Item To beef up PPA’s capability in conducting hydrographic and and capability in conducting hydrographic PPA’s beef up To accurate more for surveys required topographic standards to underwater surveywith that of at par investigation site and the government by employed the processes/procedures agencycentral mapping Mapping (National - NAMRIA and of total a has invested InformationResource Authority), PPA of the the acquisition for years last five P14.392 million in the analysis and measurement test, topographic hydro following softwares:equipment and associated

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

1 6 1 6 proposed short-term improvementsproposed short-term and/orexpansion ofanyand economicfeasibility and financialviability and to evaluate thetechnical soundness, operational ports directions inthedevelopment oftheselected to thelong-term determine study wasundertaken Luzon Luzon. andNorthwestern Northeastern The Mindanao, inNorthern for ports selected undertaken P32.79millionwas for development worth ports offeasibility studyatpriority master plansandconduct for theformulation of services 2011,consultancy In Engineering-Related Studies Consultancy Servicesfor TMO (Sorsogon) -Matnog CY 201 CY Budget Maintenance & Repair PMO Davao ongoing asofyearend. P14.11millionisstill worth Harbor Portion ofSouth proposed Bulk Terminal Project attheNorthwest for the services ofstructures,type whileconsultancy design analysisandfor ofalternative theevaluation to provide theneededinformation for foundation P16.37 millionwasundertaken worth and Mindanao soil investigation inLuzon, for identifiedports Visayas for of theconduct services addition,consultancy In has beencompleted. planning (FS/MP)for Luzon the Northwestern Ports As ofyearend,of theseports. feasibility study/master Port PolicePort Center andGAD atPMO Davao Office

7 1 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Performance REVENUE In particular, revenue from port from revenue operations In particular, over P 253.69 million or 3.13 percent by increased Management Income Fund year. the previous P 172.32 million from down went however, (FMI), of P P 138.28 million in 2011, a drop in 2010 to 34.03 million or 19.75 percent. 2011, In Source, the table of Port Revenue by of PPA’s ICTSI source the top as remained fees contributing P2.828 billion or 33.73 revenue, by port followed of the total percent revenue, wharfage dues at P 1.711 billion (20.41 percent); percent); at P1.329 billion (15.85 charges vessel at P 885.82 million (10.56 percent); Fees ATI income at P 580.84 million arrastre/stevedoring of income at P other sources (6.93 percent); pilotage/storage 387.17 million (4.62 percent), at MNHPI Fee at P 334.78 million (3.99 percent), VTMS and and P173.36 million (2.07 percent); at P 154.00 million (1.84 percent). Fees Terminal Sound management and planning enabled PPA Sound PPA management and planning enabled P 8.523 amounting to revenues gross generate to as against the P of 2.75 percent billion, a growth revenues in 2010. Gross 8.295 billion registered in the as shown 0.68 percent by target exceeded page 20) table (on following Financial

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

1 8 1 8 “While abenchmark indicatorofthevolumeeconomic performance andaccelerated byahefty22.39 percent” activities -foreign importdroppedby3.22percent in 2011,theexport componentshowedadynamic

9 1 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 0.09% 6.05% 1.20% 3.02% 11.38% 22.45% Deviation % 2.75% 3.13 (19.75) 50.50 4.37 6.58 (7.06) (2.46) 61.61 (22.92) Inc/Dec 2010 904.00 499.75 534.08 724.17 5,455.28 8,117.28 Amount 228.28 253.69 (34.04) 8.63 276.63 348.94 (72.31) (48.34) 293.60 (341.94) 2011 958.69 556.38 653.98 732.85 5,460.22 8,362.12 2010 Port Revenue by PDO by Revenue Port 8,295.62 8,106.21 172.32 17.09 6,327.22 5,302.39 1,024.83 1,968.40 476.54 1491.86 CY 2011, In Million Pesos PDO Total Visayas South Luzon % 0.68 (0.72) 205.73 0.00 (13.91) (26.33) 0.00 141.51 208.06 110.98 North MIndanao South Mindanao Manila / North Luzon Inc/Dec Amount 57.85 (60.92) 93.05 25.72 (1,067.18) (2,019.69) 952.52 1,125.03 520.14 604.89 Target 8,466.05 8,420.82 45.23 0.00 7,671.02 7,671.02 0.00 795.03 250.00 545.03 2011 Actual 8,523.90 8,359.90 138.28 25.72 6,603.85 5,651.33 952.52 1,920.06 770.14 1,149.92 Gross Revenue Gross Port Revenue FMI Other General Inc. Expenses Operating Non-Operating Net Income Tax Income Tax Net Inc. After Northern at 22.45 Mindanao the biggest growth posted Southern at 11.33 percent, Visayas by followed percent, Southern Mindanao percent percent, 1.2 6.05 at at Luzon and Manila/Northern at less than one percent. Luzon Gross Revenue by PDO Port performance generation in terms of revenue was very the year for satisfactory PDOs with the five than earningscontributing consolidated of more to higher than the figure P8.36 billion or 3.02 percent in 2010. posted Port of Ozamis

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

2 0 2 0 Total Terminal Fees VTMS Fees VTMS MNHPI ATI Fees ICTSI FeesICTSI Pilotage Other Income Other Stevedoring Arrastre/ Storage Dues Wharfage Lay-up Fees Usage Fees Dockage Port Dues Account Comparative Port Revenue 2011vs. 2010 shown in the next table: shown inthenext share Revenue by source services. is and otherancillary rental, share inarrastre/stevedoring, managementfees, dues, usagefees,port storage, pilotage, fees, terminal PPA revenue dockage, from wharfage, derivesitsport Revenue bySourceorTariffItem and Davao. foreign cargo atthePMOs ofSurigao, Princesa Puerto appears to have beendrivenby therobust volume of ofPPA improvementOverall intheperformance ports 8,385.63 137.68 16.32 173.36 885.82 2,828.78 32.22 387.17 580.84 302.56 1,711.52 1.88 301.43 637.35 388.70 2011 100% 1.64% 0.19% 2.07% 10.56% 33.73% 0.38% 4.62% 6.93% 3.61% 20.41% 0.02% 3.59% 7.60% 4.64% Total % of 8,123.31 139.34 16.23 126.00 923.57 2,760.14 31.07 423.51 552.07 289.42 1,671.02 12.30 273.47 521.29 383.87 2010 3.23% -1.19% 0.55% 37.59% -4.09% 2.49% 3.70% -8.58% 5.21% 4.54% 2.42% -84.72% 10.22% 22.26% 1.26% (Decrease) Increase / to Php770.14 million. incometaxamounting Php1.149 deducting billionafter Php1.968 billion.PPA recorded After aNetIncome Tax of 2.46 percent lower thanprevious year’s netincomeof The ofPhp1.920 resulting billionwas NetIncome expense decreased by 7.06percent in2011. Standardization III.Ontheotherhand, non-operating due to theimplementationof3rd trancheofSalary increases inProfessional andPersonal Services Services due to higherOperatingExpensesbrought aboutby 2010 expenditures ofPhp6.327 billion. This islargely of Php276.63 millionor4.37percent compared to the Total Expensesreached Php6.603 billion,anincrease Ex N et penditures I ncome PMO Legaspi (left) Staff Sumagaysay withher Manager Rosenda

1 2 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY “We pursued in 2011 projects targeted at developing developing at targeted projects 2011 in pursued “We vision our new with ports consistent our and improving the with us doing business customers our of providing efficiency, productivity, and sustained of full experience security.” safety and comfort, connectivity,

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

2 2 2 2 training atPMO Legaspi. (3) PMOengineers;and(4)Conduct of Legaspi port ;(2)Doves ofOzamis freelyof Port roaming PMO Ozamis; from -(1)Wide topOpposite left page:Clockwise view background (bottom); (top);and staff Legaspi withMayon Volcano City in This Police page:PMO -Port StationOfficer-in-charge Sustainability, Environment Security in2011. Security year were for renewed by theOffice Transportation withinthe certificate withexpiring (15)ports fifteen ofcompliancethethree (3)ofthe The certificates “Statement ofCompliance Issuedto aPortFacility”. theyear,During have existing three (23)ports twenty Statement ofCompliancePortFacility and PortFacilitySecurityCode(ISPS) Implementation oftheInternationalShip Centers reached 65,102. 2011. Total vessels monitored by Control thetwo atotal of28,307vesselsthe otherhandtracked in ships, respectively. The BatangasControl Tower on of which 8,166 and 28,629 were foreign and domestic monitored from Control the Center inBataan, VTMS 2011,atotal of36,795vessel voyagesIn were agencies in2009. ofAgreementa Memorandum thetwo between ona24/7basispursuantto facilitiesandjointlyoperate themwith the VTMS The PPA willcontinuethemaintenance ofthese Organization (IMO)ontheSafety ofNavigation. with theprovisionsMaritime oftheInternational ofBatangasincompliance in Bataanandtheport was installedby thePPA Harbor, atNorth Corregidor vessel facility monitoring astate-of-the-art (VTMS), The existing Vessel Traffic System Management Vessel TrafficManagementSystem(VTMS) E P nvironmental ort S afety , S , & ecurity P People rotection

and

3 2 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Manila North Harbor Modernization Project Manila North Harbor Modernization (MNHMP) (Manila MNHPI’s approved of Directors Board PPA The North plan for Harbor development Port, Inc.) proposed I and advance work consisting of the 1 Phase Terminal (i) construction of one (1) single integrated following: of instead Building (PTB) complex Terminal Passenger two (ii) reconstruction works small PTBs; and extension Ro-Ro consolidate 4 to and passenger operations of Pier berths; sufficient deep water and provide and (iii) 10-southside reconstruction works and extension of Pier vessels. berths sufficient deep water Lo-Lo provide for to completion in 2013. scheduled for All these are is expected initial development to proposed The passenger accommodation from considerably improve the existing PTBs with combined seating capacity of a single PTB with a 1,900 seating 1,020 passengers to capacity 3,800 seating capacity; expandable to deepen berths to 6 meters Ro-Ro the present for from vessels from vessels Lo-Lo and for 11 meters between 10.5 to and increase 11 meters; between 10.5 to to 8 meters productivity and with the introduction of adequate MNHPI The cranes. equipment such as quay appropriate pertinenthas submitted documents in relation technical of North developments initial to Harbor which already to incorporate modifications/adjustments in response documents submitted The comments/observations. PPA under review. currently are period on June 12, 2012 with the in-house staff of PPA period the in-house staff of PPA on June 12, 2012 with and maintaining the computerized managing now Re-orientation/Re-trainingsystems. of all users has also development manpower prioritybeen given in the PPA with the Bureau has been coordinating PPA program. of Internal the issuance of permit use a to Revenue for to pursuant (CAS) System Accounting Computerized compliance with all the PPA Full existing BIR regulations. is expected mid 2012 by requirements Wastewater Wastewater Photos: plant at the treatment Santos (below); General PMO and South Harbor Terminal Due to various system issues, (AFMS) implementation (AFMS) various issues, Due to system using Oracle and was redeveloped was deferred and Receipting Invoicing Front-end The software. (FIRST)System as an interfaced was developed program that is using between POMS using Portrade and AFMS conform to Oracle softwareThe was customized Oracle. of the National and report forms to requirements was (NGAS). AFMS System Government Accounting then re-implemented in 2011. warranty the MIS The period for of one year commenced last 13 June Project Computerization resolving to 2011 with the contractor committed the end of the warranty implementation issues before The ManagementThe (MIS) Information System otherwise Project, Computerization known as Reliable Operations and the PROMPT (Providing the covers Technology) Thru Management of Ports of all aspectsautomation of the business processes was composed of 7 the system Originally, of the PPA. Port The sub-systems using the PORTRADE program. (POMS), RealOperations Management Estate System Management Records (REMS), Management System Support (RMS) and Legal (LSS) were System System and Financial Accounting The out in CY 2007. rolled and and Projects (AFMS) Management System rolled (PEMS) were ManagementEngineering System (EIS) Information System Executive The out in CY 2009. out in 2012. be rolled is scheduled to MIS Computerization

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

2 4 2 4 International Cooperation (GTZ), with the Ports of Iloilo Cooperation (GTZ), withthePortsofIloilo International (PEMSEA), ASEANPortsAssociation (APA) andGerman Environmental for Management ofEast Asia the Seas projectofthePartnerships in This isatripartite Management System(PSHEMS) Port SafetyHealthEnvironment requirements.stage ofcompliancewithcertification Davao Santos orGeneral which are bothintheadvance 2012together witheither inearly QMS-VEC certification that Cagayan isexpected deOro willreceiveIt theISO Cagayan deOro wasapproved on24November 2011. QMS-VEC Policy andProcedures for Manuals thePortof Santos, Zamboanga andDavao. of The lastRevision suchasCagayan deOro,other majorports General at isnowthe GQMSS.Replication beingundertaken withitscommitmentunder of Batangasinkeeping 2011for onApril theport Entrance/Clearance (VEC) PPA on received theISOQMSCertification Vessel managementprogramquality atPPA. theimplementationof coverage to jumpstart werefrontline recommended services, for initial onvessel entranceand clearance,functions being themarine Based ontheorder ofprioritization, to begiven to frontline services. SystemsManagement Standards (GQMSS), withpriority ISO 9001:2000andtheapplicableGovernmentQuality for demonstrated with conformity shall becertified management program withdeveloped systems that implementation ofagovernment-wide quality EO 605,issuedonFebruary 23,2007,callsfor the Quality ManagementSystem(QMS) 2013, respectively. for andCagayan deOro thePortsofIloilo in2012and PPA’s commitmentisto receive PSHEMSaccreditation Port ofCagayan deOro. and Audit Team for thedevelopment ofPSHEMSinthe Nov. 2011ontheCreation ofPPA H.O. Working Team PPA alsoissuedSpecialOrder No. 731-2011dated 02 on21-25November.completed atthePortofIloilo (Training Workshop Phase 5 “internal wasalready Audit”) pursuitofPSHEMSaccreditation, advancetraining In Systems).Health andSafety Management Systems)Management andOHSAS18001(Occupational Systems orQMS), ISO14001(Environmental standards, Management suchasISO9001(Quality elementsofotherrecognizedthe key international withthePSHEMCodeconformity whichintegrates ofRecognition attests toThe Certificate thesystem’s andCagayan deOro. ofIloilo the PSHEMSatports ofRecognition by PEMSEAon the issuanceofCertificate auditby thePEMSEA. external These willculminate in by thePPA to subjected Control Internal Department, de Oro audited willbeimplemented attheseports, The systems to bedeveloped forandCagayan Iloilo the environment. andtheprotection workers, of property, healthofport operations, protection ofhumanlifesafety inport and managementsystem designed to ensureis aport ports. and Cagayan deOro asparticipating The PSHEMS Expansion atPMO Dapitan

5 2 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY used to be operated by PPA through STUs had through PPA by be operated used to of Procurement completed. been successfully for (CHOs) Handling Operators Cargo is on Oro) de Cagayan (under PMO and Guinsiliban of some issues. hold pending resolution Other include Davao, major privatization initiatives Terminal Bulk Iloilo, Zamboanga, General Santos, in Manilaand South Harbor Port Zone Expanded South Harbor Expanded Port Zone (SHEPZ) engage the services to intends of a consultant, PPA (TOR) of Reference validate to Terms under a revised study of the previous recommendations and update 3. an in-house preliminary prepared – PPA Davao evaluationfurther of the prospects of Davao developing of results The with the support of the private sector. such preliminary and/or studies had been submitted the for preparing is now PPA the DOTC. to presented to Davao conduct study for feasibility of a full blown ascertain its findings in compliance with the instruction to will have DOTC of Directors. Board the PPA issued by the winning to Proceed and issue the Notice to approve that the so Project Privatization the Davao bidder for PPA with the study and validate can proceed Consultant preliminary findings. engaged the services – PPA Terminal Manila Bulk plan and the master of a consulting firm formulate to of the the development conduct study for feasibility to contractThe awarded was bulk terminal. proposed the consultant on July 8, 2011 and work is expected to was sought approval be undertaken PPA’s in 6 months. undertake and the consultant to by hydrographic survey topographic soil investigation and geotechnical of the 250 hectares allowed in excess that are of areas under the contract PPA. without additional cost to Privatized PTB (Passenger Terminal Building) Terminal PTB (Passenger Privatized Operations in certain ports. PTBs in San Carlos, Maasin by being operated and Hilongos now are in Isabela needs PTB the private sector. the for it becomes ready before rehabilitation of operator. procurement with Special Handling Operations Bidding of Cargo Take-Over Units (STUs) in identified ports – at the handling operator of cargo procurement and Maasin Naval which Davao, Ports of Larena, Passenger Terminal Passenger Photos: and at Port of Ozamis (above); Port of San Catanduanes Andres, 1. 2. The PPA, consistent with the Aquino Administration’s Administration’s with the Aquino consistent PPA, The has lined up program Partnership) PPP (Public-Private 2011 in partnership projects in the following with the private sector: Privatization Initiatives Privatization Initiatives The system has been on pilot run at the Port of Batangas has been on pilot run at the Port of Batangas system The commenced Port of while pilot run at the part the latter of 2011. towards E-Ticketing (Batangas and Calapan) (Batangas and E-Ticketing of an enhanced component is an essential E-Ticketing the Maritime which system Cluster boarding passenger ensure implement to to envisions under the DOTC of an the implementation Pending passenger safety. PPA initiative, system inter-agency passenger boarding e-ticketing integrated PTB operations. to

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

2 6 2 6 nationwide, namely: Audits nine(9)Revenue ports conducted invarious (ICD) Control 2011,theInternal Department In area. center ratherthanjustaport city waterfront class establishments alongtheconceptofaworld invigorated commercial, institutionalandrecreational as increased employment, improved taxbase, calculated to generate economic benefitssuch comprehensive redevelopment ofSHEPZ is As originally envisioned inthe1997study, the partnership. public-private for theSHEPZ through any ofthePPA schemesof comprehensive redevelopment andbestusestrategy basisfor andlong-term a master plan onashort in1997andtoconducted formulate aconceptual I nternal Revenue Audit, 2011 CY 9 8 7 6 5 4 3 2 1 - General Santos- General (SCIPSI) Inc. CotabatoSouth Integrated PortServices, - Zamboanga (ZCIPSI) Inc. Z.C. Integrated PortServices, PMO Zamboanga PMO Legaspi PMO Batangas ATI Harbor South TMO MICT PMO Dapitan PMO Cagayan deOro A udit P rogram

undertaken in2011asfollows: undertaken A total (14)Performance Audit of fourteen was completed: compliance auditsrespectively, theyear during were also Two (2)QMSAudits, four (4)SpecialAudits andthree (3) 5 4 3 2 1 Mindanao PDO Southern 3 2 1 Mindanao PDO Northern 4 3 2 1 PDO Visayas 2 1 LuzonPDO Southern Performance Audit, 2011 CY QMS Audit, 2011 CY 2 1 PMO Batangas PMO Cagayan deOro SJASS Corp. Basilan Dockhandlers Port ofNabilid(devolved) AEB Trading services -watering (devolved)Port ofMalalag Philharbor PCBSI -Lipata IMASCO -Jordan, Inc. FTM Brokerage&PortServices, LeytePanaon -LiloanSouthern Inc. Arrastre Services, - SanJose, Antique Antique Cargo Handling&Port Terminal Inc. Services, -PortofClarin Arrastre &Stevedoring Services Sunriser PMO Batangas Corp. Daruanak PortServices Container yard ofDavao atPort

7 2 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY I.A. Bosque Construction Corporation MRB Construction and Supply MRB Construction and Supply Lao Vicente Construction Vega Dela J.C. Construction & Supply Construction/ Vicmar Jingco Construction JV Jingco Construction E.U. Inc. ARN Builders, LNR Construction Sta. Cruz Construction & Services PMO Batangas PMO Limay PMO NorthPMO Harbor Ozamis PMO Ozamis PMO Tacloban PMO TMO Ivisan, Capiz TMO TMO Lucena Mauban Port Project Improvement Rehabilitation of Rock causeway Repair of Damaged 18 at Pier Facilities Ozamis Port Expansion Project Repair/Replacement of Mooring Fixtures Repair of Damaged Wharf Portion of Old 1-4 at Bent nos. Replacement of Damaged Retaining & Concrete Wall between Pavement 1 & 2 Piers Additional of Improvement Basiao Port Repair of Damaged RC Pier/Wharf and PTB Repair of RoRo Ramp 2 / portNo. Acces 4 5 6 7 8 9 10 11 12 13 Contractor Inc. / Builders, UKC Construction Parco Equi Inc. JV Co. Orient Star Construction & Trading /BCT Construction JV Inc. Manalo & Co. J.E. Location Cagayan PMO de Oro PMO Calapan Calapan PMO Special Audit, CY 2011 Special Audit, Compliance Audit, CY 2011 Audit, Compliance Harbor Center Port Terminal, Inc. - PMO North Inc. - PMO Harbor Terminal, Port Harbor Center South Harbor - PMO Milling Corp., Foremost Phil. Asia Terminals, inc. - PMO North - PMO inc. Harbor Terminals, Asia PMO Legaspi PMO Tacloban PMO General Santos PMO Cotabato PMO 2 3 1 1 2 3 4 Photos: - (1) Port bottom to top From of Dapitan; (2) Port of Ozamis and (3)Concurrent yard; container S antillan with Manager Christian V. Staff (left Davao and his PMO photo) Port District Staff (right photo) Meanwhile, 24 CPES (Constructors Performance Performance 24 CPES (Constructors Meanwhile, during completed the audits were System) Evaluation at variousyear ports as follows: nationwide Project Port de Oro Cagayan Project Improvement Bulalacao Port Dev’t II Project New Port of San Jose MindoroOcc. 1 2 3

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

2 8 2 8 M 24 23 22 21 20 19 18 17 16 15 14 aintaining Rehabilitation Rehabilitation project Improvement/ Tacloban Port Approach Pier ofRC Repair Fendering System Wall, & Mooring ofRetaining Repair Breakwater ofDamaged Repair 6-11 from Berth SystemDistribution of Repair Water Port LightingSystem Pavement, 4& Gate Ramp, ofRoRo Repair Pavement Scoured Bulk Head& 1&2, Ramps ofRoRo Repair & back-up Area ofPortRoad Repair Deck/slab Platform ofRC Repair &CycloneCurb Railing Lane markers, ofRoad Repainting Port Facilities ofDamaged Repair program (GAD). andDevelopment onGender ofthegovernment directed initiatives insupport implements through itsGAD Focal Points socially- program, PPA support ofitscommunity As part C thru ommunity G ad -F ocal C S upport orporate Tacloban Port of Brooke’s Point Port of Port ofIloilo Port ofIloilo de Oro Cagayan Tubigon, Bohol Port of Catagbacan Port of Palawan El Nido, Princesa PMO Puerto PMO Batangas Batangas Bauan, P oints P rogram

Marra Builders, Inc. Marra Corporation & Dev’t Construction RR &BFinest Construction Goldrich Corp & Dev’t HG IIConstruction Corporation Jejor’s Construction JRY Construction Construction Wynn & Construction Gemron Steelworks J.C. Pinon Construction NBL Construction Vicmar Construction S tat

u re Organization-Focused Projects nutrition, human trafficking, violenceagainstwomen human trafficking, nutrition, seminars,Issuances; held various fora andsymposiaon Documents, Communications & Language inAllOfficial and PPA MOdated 23,2011re: May UseofNon-Sexist HarassmentCases onSexual Administrative Disciplinary information dissemination onCSCRes. No. 01-0940Re: employees whoareofdomesticviolence; victims such ascounselingandlegalassistanceto itswomen facilitated awiderangeofprograms andservices and (PDOs)spearheaded Offices The PortDistrict for thewell-being ofitspersonnel. responsive specificallyintended programs andservices 2011,PPAIn allotted someP13.498millionfor gender- Programs/Services for Employees of employees. cover otherinformation suchaspastlivelihood training togeneration isexpected begradually expandedto since beenupdated annually. The scopeofdata attainment, promotion andsoloparent statushave position level, highesteducational agebracket, Personal andprofessional dataofemployees on for amongPPA genderconcerns employees. programs ofappropriatedetermination intervention andtheassessment making GAD-related policy of theconduct in2004to support data wasstarted The generationofabaselinesex-disaggregated Information andData Generation Bank TMO Pioduran (Albay) Legaspi and (left); Photos: of Port

9 2 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Counter clockwise left Counter from (1) Manager Photos: A. QuiñonesEfren Ozamis Staff; and his PMO (2) GAD ; and (3) PMO at PMO Facility Day Care Manese F. Dumaguete Manager Annie Lee Client-Focused Projects Client-Focused Projects Campaign Information Community Other planting activitiestree include: (1) completed in conjunction Program events the National Greening of books/toys/ (2) continuous purchase 2011-2016; for clean-up/ (3) coastal centers; care child materials/paint for management activities; solid waste and; (4) information and provision video/film presentation through campaign materials at the and other information of posters Buildings (PTBs). Terminal Passenger Users Port for Programs/Services services a very of passengers yearly volume large PPA The continuously towards and hence efforts focused are with basic Buildings (PTBs) Terminal equipping Passenger elderly physically and children, women, amenities for room, family area, handicapped such as breastfeeding station, telephone first-aid room, prayer area, playing kid’s of GAD libraries, galleries/display rooms; (4) Teambuilding; Teambuilding; (4) galleries/display rooms; of GAD libraries, of Gender Roles, Leveling (5) Seminars Leadership, on visits Field Workshops. and (5) GAD Planning and others; women orphanagesto and correctionalinstitutions for capacity-buildingalso complemented interventions for employees. their In also strengthened units nationwide 2011, GAD further agencies for networking local and foreign with best practices to on facilities. exposure To foster better understanding and appreciation of GAD understanding and appreciation better foster To Point GAD Focal the PPA issues and concerns, values, in 2011: (1) the conductfacilitated the following of and Laws Trafficking and Children Women Seminar on Month, Women’s Other in (2) Participation Gender Laws; (3) Maintenance etc.; Week, Month, MaritimeEnvironment Conduct of Capacity-Building Activities of Capacity-Building Conduct In at the ports addition, GAD Centers continuously are for and areas being equipped with furniture/equipment PMOs fitness and communication and physical counseling, with likewise are provided regularly centers with child care materials. and related books/toys The PDOs also lent their support PDOs The such worthwhile to and Caravan Aids Day World as community endeavors Month, Environment Health & Nutrition/Family-Day, missions. as medical/feeding as well Week Maritime A number of PDO employees likewise benefited from free free likewise from A number of PDO employees benefited as FBS anti-flu vaccination as well bone mass screening, blood sugar screening. and children, anti-rape law, Magna Carta for Women, Women, Magna Carta for anti-rape law, and children, health/safety, occupational laws, other gender-related health women/men’s program, health reproductive pulmonary diabetes, concerns such as osteoporosis, menopause/ breast/cervical/prostate cancer, diseases, , diseases of the symptoms/cure urogenital andropause, and social-related and other health organ reproductive concerns such as drug addiction and dengue detection/ prevention.

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

3 0 3 0 physical infrastructuredevelopment programs. facilitiesinto their recovery ofmaterial and construction coastal clean-ups/solidwaste managementactivities, suchastreeactivities planting, and landscaping, ports nationwide have mainstreamed environment-related the communities. PPA’s (PMOs) Offices PortManagement awareness ofenvironmental issuesandtheireffect on advocacies related to theenhancementandraisingof The PPA GADFocal Point hascontinuouslysupported Greening/Environmental Projects andtoothers to improve dealwithconflicts teamwork. to develop their self-awareness andtheirrelationship with and theirfamilymembers. GSTs aim workers amongport companiesandshipping operators, porterage inby employees ofcargowas participated handling GSTtrainingwhich conducted (14)RCs 2011,fourteen In Sensitivity Gender Training for Port Workers through fosters andfilmshowing atPTBs. disadvantaged groups; andinformation campaign for women, children ofservices and agencies; delivery withlocalandforeign throughmaterials networking endeavoured to sustaintheproductionofinformative on GADfacilities, PPA through itsGADFocal Points, has oftravelersconcerns aswell asestablishbestpractices To address thelow level ofawareness and ongenderright GAD Information Drive for Port Users offenders, ifany, are provided withseparate cells.. are whilewomen maintainedandwell-kept trafficking shelter to strandedtravelers of temporary andvictims communication stations. Halfway Houses, whichprovide booths, publicaddress system andcomputer/ with women’s desks, publicassistanceandinformation addition,PPAIn iscontinuouslyproviding itsterminals water, wheelchairs, handsanitizers andpapertowels. lanes, includingprovision booth, priority ofsafe drinking Head Office. Head Office. modules onPEMS,AFMS, atPPA REMSandLSSconducted end-user trainingfor the PPA-MIS Computerization main personnel. 487organic Some personnelunderwent of 88coursesbenefiting2,817organic andnon-organic Training Center orPPATC alsocompleted theconduct personnel, thePPA through –thePPA itstraining arm Complementing thetrainingprograms for organic security, facility amongothers. port management, IMDG&IMSBCCode, logistics policy, and anddisaster prevention, strategicconservation port management,coastalenvironment green port areas of: , , andIsrael. Courses attended were inthe BruneiDarussalam,, Korea,, countries: 10 foreign scholarship/training grants inthefollowing theyear,During 12PPA employees were recipients of Development. Report Writing, Supervisory OilSpillManagement, Forensic Accounting, Personnel Statistical Management, Administration andDataAnalysis, InvestigativeSurvey Safety, Maritime Management, Risk BasicCustomer Skills, Audit andControl,Internal Systems Information Audit, Records and Archives Investigation, Criminal Management, Legal withMSExcel, Education, BasicDataManagement ranging Continuing from Project Mandatory Management, focusedThe coursesconducted subjects onvarious graduates andField from HeadOffice Offices. institutions, atotal of171courseswhichproduced 450 delivered, sponsoring incooperationwithvarious successfully 2011,theHumanResource Department In Economic Cooperation (APEC), ASEANPortAuthorities Economic Cooperation (APEC), Organization (IMO),Asia-Pacific Maritime the International associations suchas maritime international with various PPA ties maintainsitscooperative actively andnetworking Maintaining Global Ties PEOPLE DEVELOPMENT PROGRAM DEVELOPMENT PEOPLE Miole with hisPMO Miole Manager Leonilo E. Zamboanga staff.

1 3 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY

Mooring Bollard for the Port of Mooring for Bollard Validation of the Training Course: Handling Course: Training of the Validation Goods in Ports – General Awareness Dangerous on Thailand (IMDG 34-08 compliant) in Bangkok, 14 – 15, March Cruise Shipping Miami in Miami, (CSM) Florida, of America States (USA) on United 14 – 17, 2011 March London in Session 98th – Meeting Committee Legal on April 4 – 8, 2011 Conduct of inspection and observation of the (RDF) laboratory of Rubber Dock Fenders testing and on City, Yangzhou in Expansion Project May 16 – 20, 2011 of Information Seminar on on Exchange APA with the theme Port Development Project “The Port Change to Challenge of Climate in Brunei Darussalam on May 4 –5, 2011 Industries” 89th Session in of the Maritime Committee Safety on May 11 – 20, 2011 London ServicesTransport Sectoral and Sixth Logistics Meeting and 65th (LTSSWG) Working Group Committee ASEAN Meeting Coordinating of the on Services in Bandung, (65th CCS) on May 23 – 27, 2011 MeetingWorking Group Transportation 34th APEC on June 12 – 16, 2011 Australia in Brisbane, Co-Operation Technical 61st Session of the (TC)Committee of the International Maritime on June 21 – 23, 2011 (IMO) in London Organization System and orderliness applied in and orderliness System Photos: Macapagal Eva to passenger queuing and access of at South and conduct PTB Harbor (above); (left) Legaspi at PMO Senior Staff Conference 5. 6. 7. 8. 9. 10. 11. 12. 13.

2011 BIMP-EAGA Strategic Planning Meeting Planning in Strategic 2011 BIMP-EAGA Kota Kinabalu, Sabah, Malaysia on January 12 – 14, 2011 Sixth Ports and (6th) Philippine Hotel at Manila Peninsula Shipping Conference on January 2011 27 and 28, Meeting Review Planning and Progress Regional 3rd of the ASEAN-GIZ Project on Sustainable Port of the ASEAN-GIZ Project Development Project in the ASEAN Region Curriculum Training and Workshop Progress in Jakarta,Workshop Design Indonesia on 8 – 10, 2011 February 15th Session of the Sub-committee on Bulk Liquids 7 – 11, 2011 on February and Gases in London 1. 2. 3. (APA), and (Brunei-Indonesia-Malaysia- East (APA), with its regional (BIMP-EAGA) Association Growth Asia counterparts participation through in policy-making, capacity dialogues on common endeavors building and port to related facility standards/benchmarking, anti-human trafficking,anti-terrorism, environmental portprotection, In 2011, PPA security and safety. in Malaysia, 23 meetings/conferences officials attended USA, China, Cambodia, Thailand, Indonesia, London, to Democratic of Lao and Singapore Brunei, People’s tackle keep with and to abreast common endeavors and developments. global maritime trends 4.

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

3 2 3 2 18. 17. 16. 15. 14. Sabah, Malaysia onSeptember 20–22,2011 Sabah, Malaysia Kinabalu, in Kota Cluster Meeting (TIICTD) Development andICT Transport, Infrastructure Groups andSpecial Working SpecialMeeting Linkages BIMP-EAGA andSea AirLinkages San Francisco, U.S.A. onSeptember 19–212011 Green oftheAPSNCouncil in Portsand4thMeeting (APSN) Network WorkshopAPEC PortServices on Cambodia onSeptember 7-8,2011 in Sihanoukville, inthe ASEANRegion”“Sustainable PortDevelopment withtheASEAN-APAin connection Project 4th Regional Project Progress andPlanning Meeting on July7–8,2011 Vientiane, People’s ofLao Republic Democratic Intergovernmental AgreementPortsin onDry Subregional of ontheDevelopment Meeting on June21–24,2011 32nd ASEANPortsAssociationIndonesia inMedan, 23. 22. 21. 20. 19. December 12–13,2011 December (STOM) inPhnom Penh, Cambodia on 32nd ASEANSenior Meeting Transport Officials on November 14-15,2011 and Exhibition, World Trade Center, City First Conference Maritime Philippine International onNovember Malaysia Kuantan, 22–24,2011 37th ASEANPortsAssociation (APA) in Meeting 5–7,2011 October inPenang, Meeting on Malaysia (MTWG) 22nd ASEANMaritime Transport GroupWorking Group inSingapore onSeptember 26–29,2011 7th Logistics and Sectoral TransportWorking Services (66thCCS) backto backwiththe on Services oftheCoordinating66th Meeting Committee Manager Liberto C.delaRosawith Manager Liberto Korean delegation(above); and his PMO Gen. Santos Staff (left) Staff his PMOSantos Gen. Photos: with GMJuan C.Ana GM Juan C. Ana withKoreanGM Juan C.Ana delegation.

3 3 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Glance

at a PPA Performance 2011

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

3 4 3 4 5 3 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 183,200.00 199,559.57 758,117.60 Project Cost 3,715,110.18 6,762,863.00 9,575,827.82 9,247,508.54 3,815,122.05 1,448,017.84 1,333,305.55 2,993,919.50 9,581,118.25 1,376,119.45 21,890,358.26 24,848,317.38 23,056,205.13 37,405,603.68 12,079,691.35 27,042,882.62 27,510,910.36 48,634,407.74 85,308,495.76 13,606,865.47 30,374,125.82 39,955,027.08 13,220,635.67 27,100,000.00 71,582,469.79 75,728,222.00 33,474,974.54 53,315,722.15 72,324,111.07 33,304,650.55 40,671,458.20 26,186,992.33 10,385,869.03 36,458,949.78 17,139,974.65 187,898,070.18 150,087,009.01 266,532,320.67 81,279,675.41 263,602,626.37 129,515,466.98 763,585,095.76 320,131,245.10 1,568,892,798.95 Jul 2 2011 Oct 4 2011 Apr 3 2011 Feb 7 2011 Mar 5 2011 May 5 2011 Jan 22 2011 Jan 31 2011 Jan 21 2011 Jan 12 2011 Jan 19 2011 Oct 30 2011 Oct 11 2011 Jun 24 2011 Apr 15 2011 Apr 26 2011 Apr 20 2011 Feb 25 2011 Feb 15 2011 Feb 25 2011 Feb 19 2011 Feb 24 2011 Dec 19 2011 Mar 12 2011 Mar 18 2011 Mar 15 2011 Dec 19 2011 Dec 23 2011 Nov 10 2011 Nov 25 2011 Aug 17 2011 Aug 15 2011 Aug 26 2011 Aug 19 2011 May 23 2011 Completion May 23 2011 May 18 2011 May 23 2011 Sept 23 2011 June 11 2011 June 15 2011 Jul 1 2011 Jul 1 2011 Jan 4 2011 Mar 5 2010 Mar 2 2010 Dec 8 2009 Mar 5 2011 Mar 4 2010 Jul 22 2010 Aug 4 2011 Jan 14 2011 Oct 20 2009 Jun 29 2011 Oct 15 2009 Apr 13 2010 Apr 16 2011 Apr 12 2011 Apr 30 2010 Feb 20 2010 Feb 22 2010 Feb 11 2011 Dec 19 2009 Mar 11 2010 Sept 3 2009 Dec 21 2010 Mar 25 2010 Dec 31 2007 Nov 19 2010 Nov 22 2010 Nov 22 2010 Nov 22 2010 Oct 14 2010 Nov 20 2009 Nov 16 2010 Aug 22 2011 May 24 2010 May 24 2010 May 24 2010 May 19 2010 May 13 2010 Date Started Project Description Sub-Total PDO Visayas Construction of Transit Shed Improvement Project (RC Wharf Extension, Relieving Platform, Back-up Area) Extention of Temporary PTB Concreting of Damaged Paving Blocks at Marshalling Yard & Rehabilitation of Drainage System Construction of Waste Water Treatment Plant Construction of Fence & ISPS Delineation Area Port Improvement Construction of PTB Port Development (Construction of RoRo Ramp, RC Wharf & Rock Causeway) Port Development Removal and demolition of affected residental houses Provision of Electrical Supply and Installation of Transformer Port Development Widening of Causeway & Reclamation Construction of RoRo ramp & R.C. Platform Port Improvement Project Phase 2 Concrete paving of back-up area with drainage system & lighting tower Extension of Rock Causeway Additional improvemvent of Basiao Port Upgrading & Rehabilitation of Port (RC Wharf, Back-up Area) Repair/Improvement of damaged/collapsed slope protection Construction of lighthouse Provision of X-Ray Facilities Provision of Covered Walk Relocation of existing steel tower to Port of Lubang & conversion Relocation of existing steel tower to Port of Lubang & conversion of Light House Provision of Covered Walk Port Development Project, Phase II (RoRo Ramp; Rock Causeway) RC Pier, Roro Ramp & RC Wharf, Back-up Area & Rock Causeway, Port Lighting System Improvement Project (RoRo Ramp & Breasting Dolphin, Back-up Area, PTB) Port Expansion Project (Back-up Area, Widening & Access Road, Port Lighting System) Phase 2-RC Pier, RORO Ramp & Breasting Dolphin; Rock Causeway & Port Lighting System Construction of Back-up Area Port Expansion Project, Phase II (RoRo Ramp & Breasting Dolphin, Reclamation) Port Improvement Project (RC Pier, RoRo Ramp & Breasting Dolphin; Rock Causeway & Back-up Area; Port Lighting System) Construction of Back-up Area and Passenger Shed Construction of Back-up Area and Development of Back-up Area Ramp, Port Improvement Project (RoRo Breasting Dolphin & RC Platform) Rehabilitation of Rock Causeway Construction of RC Pier Construction of Waiting Shed at Main Gate, Phase 1 Construction of Waiting Shed at Upgrading of Existing Breakwater, South Side (Phase II) Upgrading of Existing Breakwater, Sub-Total PDO Southern Luzon Sub-Total PDO Northern Mindanao Sub-Total PDO Southern Mindanao Sub-Total PDO Manila/Northern Luzon Sub-Total PDO Manila/Northern FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO HO HO HO HO HO HO HO HO HO HO HO HO HO HO Office Implementing Port/Location PMO Nasipit Masao Port, Agusan del Norte GRAND TOTAL 2011 Port, CDO PMO Iligan Port, Zamboanga Port, PMO General Santos General Santos Port, Makar Wharf PMO Zamboanga Zamboanga Port, Zamboanga del Sur PMO Cagayan de Oro Balbagon Port, , Cam. Benoni Port, Mahinog, Camiguin PMO Davao Tagpopongan Port, Samal, Davao DN PMO Loay River Quay, Bohol PMO Dapitan Port, San Ricardo Port, Southern Leyte PMO Tacloban Babatngon, Leyte PMO Hilongos Port, Southern Leyte Pio Duran, Albay Sorsogon Port, Sorsogon PMO Puerto Princesa Culion Port, Palawan PMO Iloilo Basiao Port, Ivisan, Capiz PMO Dumaguete , Negros Oriental Pantao Port, Albay Matnog, Sorsogon PMO Legazpi Elise Pt., Patitinan, Sangay, Cam. Sur Roxas Port, Oriental Mindoro Roxas Port, Oriental Mindoro Lubang, Occidental Mindoro Calapan, Oriental Mindoro Bulalacao Port, Or. Min. San Jose Port, Batangas San Juan Port, Batangas PMO Calapan Abra de Ilog Port, Occ. Min. San Andres Port, Quezon Poctoy Port, Odiongan, Romblon Perez, Quezon San Andres Port, Quezon PMO Limay Casiguran Port, Aurora Gumaca, Quezon Mauban Port, Quezon PMO South Harbor South Harbor, Manila Dingalan Port, Aurora Bauan Port, Batangas PMO Batangas Batangas Port, Batangas 41 39 40 36 34 35 PDO Northern Mindanao 37 38 33 31 PDO Southern Mindanao 32 30 29 28 23 24 25 27 PDO Visayas 26 22 21 20 19 18 17 16 15 12 13 14 11 9 8 10 PDO Manila/Northern Luzon 1 6 7 3 2 5 PDO Southern Luzon 4 Completed Completed Projects Locally-Funded Field Office-implemented (CY & 2011, In Office Head pesos)

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

3 6 3 6 Locally-Funded Projects Completed Locally-Funded Projects Ongoing Head Office & pesos) (Status asof31December Office-implemented 2011,In Field 11 61 12 3 19 18 16 15 14 7 6 2 Grand Total 63 60 57 56 55 51 49 48 47 46 45 43 42 41 40 39 38 PDO NORTHERNMINDANAO 36 34 33 32 31 29 28 27 25 23 PDO VISAYAS 10 PDO SOUTHERNLZON 62 44 37 22 5 4 53 1 PDO MANILA/NORTHERNLUZON 30 58 35 24 13 8 9 26 52 PDO SOUTHERNMINDANAO 50 21 59 54 20 17 San AndresPort,Catanduanes Zamboanga Port, City PMO Zamboanga Roxas Port,OrientalMindoro PMO Calapan Lamao Port, Virac Port,Catanduanes Matnog Port,Sorsogon Masbate Port,City Legazpi Port,City Legazpi Port,City Basco Port,Batanes Curiamo Port,IlocosNorte Lamao Port,Bataan Zamboanga Port, delSur Glan Port,SaranganiProvince Davao Port PMO Davao Sindangan Port,ZamboangadelNorte Dapitan Port,ZamboangadelNorte Surigao Port,delNorte Surigao Port,City Sta. MonicaPort,SurigaodelNorte Lipata Port,SurigaodelNorte Lipata Port,SurigaodelNorte Dona Helene,SurigaodelNorte Ozamiz Port,OzamisCity PMO Ozamis Nasipit Port,AgusandelNorte PMO Nasipit Guinsiliban Port,Camiguin Cagayan deOroPort,CDO Benoni Port,Mahinog,Camiguin Balingoan Port,MisamisOriental PMO CagayandeOro Paninirongan Port,NorthernSamar Maguino-o Port,CalbayogCity Carigara Port,Leyte Port,EasternSamar Danao Port,NegrosOcc. PMO Pulupandan Lipata Port,Antique Iloilo Port Fort SanPedro PMO Iloilo Dumaguete Port PMO Dumaguete Ambulong Port,Romblon PMO Batangas Zamboanga Port, delSur Del CarmenPort,SurigaodelNorte PMO Surigao Tubigon Port,Bohol Puerto PrincesaPort,Palawan Currimao/Aparri/Masinloc/Sn Fernando PMO SanFernando North Harbor PMO NorthHarbor Dapitan Port,Zambo.delNorte Dingalan, Aurora PMO Limay Biri Port,NorthernSamar PMO Tacloban Tacloban PortImprovement/Rehabilitation Pantukan Port,CompostelaValley San JosePort,NorthernSamar DumagueteTanjay Port,NegrosOr, Cataingan Port,Masbate PMO Legazpi Sual Port,Pangasinan Valanga Port,Batanes Guimbal Port,Iloilo Dapitan Port,Zambo.delNorte PMO Dapitan Surigao Port,delNorte Coron Port,Palawan General SantosPort,MakarWharf PMO GeneralSantos Dapitan Port,ZamboangadelNorte Balabac Port,Palawan PMO PuertoPrincesa Masbate Port,City Port/Location menting Imple- Office HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO HO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO FO Sub-Total PDOManila/NorthernLuzon Sub-Total PDOSouthernMindanao Sub-Total PDONorthernMindanao Rehabilitation ofFastCraftTerminal Constructionof TravelersHub Paving ofBack-upArea(Construction ofPavement) Port Improvement ofPPAAdminBldg. Expansion ofPortOperationsBuidling;Renovation/Extension Port Development(ConstructionofRoRoRamp&RockCauseway) ConstructionofRTGLines,PortLightingSystem) Improvement ofBack-upArea(ConstructionPavement, Dredging4,200cu.m.) Port ImprovementProject(Constructionof300sq.m.PTBand Provision/Relocation ofGeneratorSet&ConstructionShed Construction of9x11mRoroRamp Paving ofBack-upArea(ConstructionPavement) two-storeybuildingwithRoofDeck Passenger Terminal&OperationsBuilding-Constructionof Provision of300KVAStandbyGeneratorSet&GenSetshed Extraction/Provision ofadditionalBreastingDolphinatBerth8 Paving ofBack-upArea(ConstructionPavement) Improvement ofportfacilities/concretecauseway &concretingofpavement Removal ofcurb,gutter,island&otherobstruction Extension ofexistingPTB Construction of Roro Ramp/RC Wharf; Construction of Roro Port (Phase 1) Construction ofPTB LightingSystem) Port ExpansionProject(Back-upArea, LateralDrain&PerimeterFence) Paving ofBack-upArea(ConstructionPavement, Port Development(ExtensionofRCPier12x9m) Paving ofBack-upArea(ConstructionPavement) Reclamation ofBack-up&RehabilitationBulkhead Port Improvement(RoroRampandCauseway) Construction ofPTB&Back-upArea Improvement/Rehabilitation, DrainageSystem,PortLightingSystem Improvement Project Improvement ofPaninironganPort Pier ExtensionandPTB Port Improvement(RCDeck/RoroRamp/MooringBollard) Improvement ofPort(RCDeck/RoroRamp/MooringBollard) Improvement ofPort Construction of2-storeyPTB&TMOBldg. Construction ofBack-upArea(Reclamation&PortLightingSystem) Paving ofContainerMarshallingYardandBack-upArea Port Development(RoroPlatform/RoroRamp) Improvement ofContainerYard accessoriesforthenewPTB Construction ofSecurityFence&othernecessary Paving ofBack-upArea/ConstructionPavement Extension,PortLightingSystem) Port ExpansionProject(Back-upArea,Wharf Port ExpansionProject UpgradingofPavementatExistingRockCauseway) Port ImprovementProject(R.C.PierExtension,Back-upArea& Construction ofPTB/TMO onPiles&2RoroRamps,PortLightingSystem) Port ExpansionProject(Back-upArea,R.C.Deck Construction ofPTB Construction ofadditional2Rororamps Construction ofRCWharf Passenger TerminalBldg.,R.C.PlatformandElectricalWorks Construction ofBack-upArea PerimeterFence&provisionofLightingTower Expansion ofPTB,concretingBack-upArea,extension Construction ofBack-upArea Improvement Project;RCPierExtension Construction ofWharf Port DevelopmentProject(RoRoRampon-fill&RockCauseway) Pier Extension&EvacuationofBerthingArea Provision ofwatersupplysystematPTB &surgesupression Supply &installationoflightingarrester lightingleadingtoIslaPutingBato Improvement ofaccessroad&rehabilitationstreet Upgrading ofpowersupplysytemintothree(3)phase Construction ofSeawall&Breakwater Construction ofSecurityFence,Gate,Guardhouse&concretepaving Sub-Total PDOSouthernLuzon Sub-Total PDOVisayas Project Description Date Started Nov282011 Nov302011 Sept 242009 Sept 152011 Aug 252011 Aug 112011 Aug 112011 Nov 182011 Nov 212011 Dec 192011 Feb 122010 Apr 182011 Jun 282011 Jun 282011 Jun 282011 Oct 252011 Oct 252011 Aug92011 Dec12011 Aug 82011 Jul 122011 Jul 142011 Jul 132010 Jul 132011 Dec 82011 Dec 82011 Dec 42009 Feb 72011 Oct 52011 Oct 42011 Oct 42011 Jul 62011 Jul 62011 Jul 72011 Jul 62011 Completion Sept 272012 May 312012 Aug 182012 Aug 192012 Aug 142012 Nov 222011 Nov 282011 Nov 142012 Nov 122012 Dec 242011 Mar 312012 Mar 122012 Feb 112012 Feb 102012 Apr 262012 Jun 302012 Jun 292012 Jun 162013 Jun 292012 Oct 182012 Jan 272012 Jan 102012 Jan 232012 Sept 12012 May 22012 May 72012 Dec 82011 Feb 62012 Feb 92012 Feb 42012 Feb 12012 Jun 32012 Jan 12012 Jan 42012 1,719,520,025.43 Project Cost 233,184,067.13 597,745,827.47 349,082,674.34 213,708,973.01 150,033,820.63 375,906,282.64 325,798,483.48 26,737,831.50 26,997,766.04 20,598,717.67 26,042,032.32 29,297,781.81 55,194,866.16 19,744,933.18 64,914,448.00 17,512,980.43 23,052,605.10 23,638,731.81 71,269,999.00 13,856,038.37 15,565,907.86 75,999,690.55 26,284,528.48 14,744,095.55 19,618,531.29 37,150,090.90 95,289,000.00 11,782,995.89 28,280,846.00 53,936,443.60 17,915,208.14 54,709,704.02 32,010,000.00 40,290,346.51 35,950,500.00 29,760,664.31 13,107,013.57 21,380,388.00 18,482,136.08 51,855,287.41 80,607,812.61 Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Under Procurement Suspended-30.03% Ongoing-56.77% Ongoing-71.00% Ongoing-71.25% Ongoing-90.25% Ongoing-10.00% Ongoing-23.13% Ongoing-10.00% Ongoing-85.49% Ongoing-98.64% Ongoing-45.89% Ongoing-63.64% Ongoing-75.70% Ongoing-81.39% Ongoing-80.76% Ongoing-92.62% Ongoing-81.62% Ongoing-11.36% Ongoing-25.00% Ongoing-27.12% Ongoing-95.00% Ongoing-67.62% Ongoing-32.16% Ongoing-70.59% Ongoing-80.10% Ongoing-88.00% Ongoing-71.53% Ongoing-24.83% Ongoing-5.51% Ongoing-2.75% Ongoing-6.75% Ongoing-1.79% Ongoing-1.43% Ongoing-5.32% Ongoing-0.00% Ongoing-60.15 Status

7 3 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 0 0 269,031 204,003 866,527 106,534 924,025 343,633 360,502 370,026 223,231 747,466 1,087,988 6,504,302 1,200,883 2,092,358 4,348,127 2,972,050 4,217,165 7,584,161 6,260,367 8,065,324 7,737,877 15,974,600 17,353,176 10,039,995 12,548,630 FOREIGN 96,598,780 19,072,569 16,268,146 45,454,864 2010 56,544 413,477 637,397 916,300 913,378 369,600 2,368,744 1,580,445 4,120,627 1,599,869 1,569,548 5,028,157 1,677,590 1,328,378 5,675,037 2,276,490 3,376,511 1,696,120 1,397,766 1,482,714 6,175,429 1,558,560 5,374,364 6,274,691 8,539,837 9,751,271 11,929,164 69,796,900 16,030,126 10,614,469 24,861,197 DOMESTIC 56,544 617,480 2,637,775 2,668,433 2,466,396 1,022,834 2,493,573 6,229,040 2,021,223 1,688,880 6,045,063 4,368,848 7,724,638 1,919,351 4,369,816 2,230,180 6,629,967 1,558,560 TOTAL 10,624,929 16,611,997 18,724,059 12,958,525 18,266,554 16,314,686 16,146,329 GRAND 16,605,161 28,823,840 23,768,003 26,882,615 70,316,061 166,395,680 0 0 (in m.t.) 90,176 22,375 245,183 830,467 935,044 276,461 284,845 777,415 211,347 656,474 1,033,952 6,985,053 1,664,189 1,904,354 2,872,927 5,308,110 6,686,969 9,749,520 6,325,263 3,787,297 8,354,364 6,327,349 22,697,284 12,960,296 17,801,621 FOREIGN 26,149,359 18,924,880 44,350,670 104,106,622 2011 55,226 483,671 965,278 691,659 888,315 323,647 289,598 2,285,005 1,746,079 3,951,438 1,606,000 1,345,700 5,287,080 2,003,911 1,223,061 6,215,753 2,241,223 3,668,945 1,753,493 1,552,642 1,402,121 7,558,895 5,925,811 6,052,213 8,521,419 9,895,717 14,655,176 74,171,940 17,106,386 10,803,256 27,845,162 DOMESTIC 55,226 728,854 987,653 289,598 2,375,181 2,780,031 3,270,189 2,176,167 6,222,124 2,280,372 1,507,906 6,993,168 4,145,577 6,541,872 1,964,840 6,860,752 2,058,595 6,648,910 TOTAL 10,936,491 23,388,943 20,519,191 12,612,780 18,689,936 15,801,733 18,442,473 GRAND 16,875,783 36,045,076 23,433,735 29,728,136 72,195,832 178,278,562 PDO/PMO Zamboanga Davao General Santos Cotabato Dapitan Ozamiz Surigao Nasipit Iligan Cagayan de Oro Tagbilaran Tacloban Pulupandan Ormoc Iloilo Dumaguete Puerto Princesa Batangas Legazpi Manila - S. Harbor - M.I.C.T. Limay San Fernando Calapan Manila - N. Harbor TOTAL PDO SOUTHERN MINDANAO PDO NORTHERN MINDANAO PDO VISAYAS PDO SOUTHERN LUZON PDO MNL/NORTHERN LUZON At Berth/Anchorage Throughput Cargo By Port District/Port Management Office By Port District/Port

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

3 8 3 8 At Berth/Anchorage By PortDistrict/PortManagementOffice Passenger PDO SOUTHERNMINDANAO PDO NORTHERNMINDANAO PDO VISAYAS PDO SOUTHERNLZON PDO MNL/NORTHERNLUZON TOTAL Zamboanga General Santos Davao Dapitan Cotabato Surigao Ozamiz Nasipit Iligan Cagayan deOro Tagbilaran Tacloban Pulupandan Ormoc Iloilo Dumaguete Puerto Princesa Legazpi Calapan Batangas San Fernando Limay -M.I.C.T. Manila -S.Harbor Manila -N.Harbor PDO/PMO 49,485,001 17,599,181 15,270,060 GRAND 5,545,876 9,523,641 1,546,243 TOTAL 3,742,330 1,042,289 1,342,461 3,121,880 2,699,065 2,019,665 3,947,673 2,537,256 3,324,062 2,182,947 2,411,903 3,195,340 3,788,435 5,265,534 5,890,430 120,728 640,529 340,570 325,661 816,839 728,662 Traffic 742 0 0 0 DOMESTIC 49,434,551 17,599,181 15,269,331 5,507,929 9,523,641 1,534,469 3,704,383 1,042,289 1,342,461 3,121,880 2,699,065 2,019,665 3,947,673 2,537,256 3,324,062 2,182,947 2,411,903 3,195,340 3,788,435 5,265,534 5,890,430 120,728 640,529 340,570 324,932 805,065 728,662 742 2011 0 0 0 FOREIGN 50,450 37,947 11,774 11,774 37,947 729 729 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10,576,589 52,701,645 17,688,740 16,513,171 GRAND 6,060,108 1,863,037 TOTAL 1,004,780 1,329,277 1,312,285 3,468,781 3,301,809 2,178,430 3,798,669 2,511,202 3,270,403 2,315,381 2,585,835 3,207,250 3,800,785 5,604,719 6,826,589 4,037,970 281,078 108,285 584,519 315,284 821,983 36,254 57 20 0 DOMESTIC 10,576,589 52,637,626 17,688,422 16,512,372 6,034,597 1,825,646 1,329,277 1,312,285 3,468,781 3,301,809 2,178,430 3,798,669 2,511,202 3,270,403 2,315,381 2,585,517 3,207,250 3,800,785 5,604,719 6,826,164 4,012,459 280,704 967,389 108,285 584,519 315,284 821,983 36,254 57 20 2010 0 FOREIGN 64,019 25,511 37,391 37,391 25,511 318 799 374 318 425 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 3 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 0 0 35 28 20 19 79 57 124 337 345 317 125 109 217 173 356 108 442 535 531 835 654 1,833 1,068 2,101 1,839 2,329 1,532 5,448 10,798 FOREIGN 2010 272 458 103 1,127 3,166 8,779 1,063 5,893 5,709 6,939 4,436 14,159 18,908 13,781 14,180 14,551 22,986 10,745 22,534 13,140 25,883 36,962 23,706 42,922 22,800 37,632 52,354 95,321 17,645 335,202 132,250 DOMESTIC 115 272 900 1,464 3,201 9,124 1,083 6,249 7,810 1,942 7,474 4,967 20,741 13,809 14,305 14,868 23,005 10,854 22,751 13,313 25,962 37,019 23,814 43,990 22,800 39,961 53,189 96,853 23,093 346,000 132,904 TOTAL GRAND 0 7 0 36 34 20 86 39 115 304 483 114 259 160 190 113 106 383 991 447 559 580 897 608 1,908 2,097 1,847 2,363 1,480 5,530 10,878 FOREIGN 2011 94 245 389 1,079 2,902 9,016 1,041 6,632 6,253 5,399 4,704 14,017 19,081 14,531 14,619 15,446 22,923 11,491 22,576 11,638 26,550 37,155 21,857 39,437 21,502 37,324 54,653 89,428 16,839 330,577 132,333 DOMESTIC Shipcalls 245 836 1,383 2,938 9,499 1,075 7,015 1,941 6,812 7,496 5,284 14,132 20,989 14,538 14,733 15,705 22,943 11,577 22,736 11,828 26,663 37,194 21,963 40,428 21,502 39,687 55,550 90,908 22,369 341,455 132,941 TOTAL GRAND PDO/PMO TOTAL Zamboanga General Santos Davao Cotabato PDO SOUTHERN MINDANAO Dapitan Surigao Ozamiz Iligan Nasipit Cagayan de Oro PDO NORTHERN MINDANAO Tagbilaran Tacloban Iloilo Ormoc Pulupandan Dumaguete PDO VISAYAS Legazpi Puerto Princesa Batangas Calapan PDO SOUTHERN LUZON San Fernando - M.I.C.T. Limay Manila - S. Harbor PDO MNL/NORTHERN LUZON Manila - N. Harbor By Port District/Port Management Office By Port District/Port At Berth/Anchorage Number of Number

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

4 0 4 0 By PortDistrict/PortManagementOffice At Berth/Anchorage No. of PDO VISAYAS Puerto Princesa Legazpi Calapan Batangas PDO SOUTHERNLZON San Fernando Limay -M.I.C.T. Manila -S.Harbor Manila -N.Harbor PDO MNL/NORTHERNLUZON PDO NORTHERNMINDANAO Tagbilaran Tacloban Pulupandan Ormoc Iloilo Dumaguete PDO SOUTHERNMINDANAO Surigao Ozamiz Nasipit Iligan Cagayan deOro TOTAL Zamboanga General Santos Davao Dapitan Cotabato PDO/PMO Containers Handled GRAND 3,465,155 4,932,492 TOTAL 1,713,288 261,520 254,763 901,567 976,843 771,603 101,360 167,010 151,277 671,643 49,487 35,098 14,389 15,248 21,714 94,392 21,800 31,516 36,941 17,163 71,387 3,421 7,006 2,133 7,260 0 0 0 0 DOMESTIC 1,923,666 983,294 261,520 254,691 379,613 123,489 771,603 101,360 166,938 206,300 44,548 85,526 35,098 15,248 21,714 94,392 21,800 31,516 36,941 17,163 94,735 71,318 9,450 2,676 7,006 2,133 7,260 2011 0 0 0 0 FOREIGN 2,481,861 3,008,826 1,627,762 521,954 853,354 465,343 56,542 4,939 4,939 745 72 72 69 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 GRAND 3,158,023 4,497,634 TOTAL 1,612,886 246,873 256,379 798,177 553,548 988,268 170,975 140,027 584,669 38,182 31,705 11,133 15,788 92,709 99,374 20,453 27,687 34,250 21,940 67,325 5,737 3,321 7,416 1,527 6,156 740 0 0 0 DOMESTIC 1,639,859 747,649 246,873 236,648 371,598 553,548 101,764 151,244 212,129 37,091 89,542 31,705 11,133 15,788 92,709 99,374 20,453 27,687 34,250 21,940 85,988 67,325 4,646 2,795 7,416 1,527 6,156

740 (in T.E.U.) 2010 0 0 0 FOREIGN 2,410,374 2,857,775 1,523,344 426,579 886,504 372,540 19,731 19,731 54,039 1091 1091 526 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1 4 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Republic of the Philippines of the Republic COMMISSION ON AUDIT COMMISSION Auditor’s Report Auditor’s Commonwealth Avenue, , Philippines Avenue, Quezon Commonwealth Independent Independent The Board of Directors Philippine Ports Authority Port Area, Manila Statements Report on the Financial position financial of statement the comprise which (PPA), Authority Ports Philippine the of statements financial accompanying the audited have We as at December 31, 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year explanatory information. of significant accounting policies and other then ended, and a summary for the Financial Statements Management’s Responsibility 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 whether due to or error. statements that are free from material misstatement, Auditor’s Responsibility Philippine with accordance in audit our conducted We audit. our on based statements financial these on opinion an express to is responsibility Our Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable free from material misstatement. assurance whether the financial statements are procedures The statements. financial the in disclosures and amounts the about evidence audit obtain to procedures performing involves audit An selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements,presentation whether fair and preparation entity’s the to relevant control internal the considered we assessments, risk those making In error. or fraud to due of the financial statements in order to design audit procedures appropriate in the circumstances, but not to express anincluded opinionevaluating the appropriateness onof accounting it.policies used Itand also the reasonableness of accounting estimates made by management, as financial statements. well as evaluating the overall presentation of the is sufficient and appropriate to provide a basis for our qualified audit opinion. We believe that the audit evidence we obtained Basis for Qualified Opinion and Property of understatement and income of understatement equal with million P53.48 by overstated were expenses maintenance and Repairs Equipment account. Major repair and maintenance expense were not capitalized but were instead recognized to Philippine Accounting Standard No. 16 on Property, Plant and Equipment (PPE). treatment for these transactions and events is contrary in profit or loss. The accounting Accountable Form Inventories were understated by P20.47 million with equal overstatement of Printing and for the issuances of accountable forms to PDOs/PMOs. recording of expense in the Head Office books Binding Expenses due to outright In PPA Head Physical the Office, than less was billion P1.17 Physical of books the in balance Pulupandan PMO Inventory in while, million P50.84 by statements financial Reportsthe in presented of Furniture, Fixtures and Equipment Inventory Report for P&E by P15.60 million. including Motor Vehicle were less than the balance as Accounts Receivable and Equity accounts (Subsidy/Surplus) accounts were understated by P108 million due to erroneous reclassification in PMO North Harbor of recorded Accounts Receivable to Contingent Assets account. Qualified Opinion fairly, present statements financial the paragraphs, Opinion Qualified for Basis the in described matters the of effects the for except opinion, our In cash its and performance financial its of and 2011, 31, December at as Authority Ports Philippine the of position financial the respects, material all in in the Philippines. flows for the year then ended in accordance with state accounting principles generally accepted Emphasis of Matter involving lawsuits various the of outcome the to related uncertainty the describes which statements financial the of 47 Note to attention draw We the PPA. Report on the Supplementary Information Required Under Revenue Regulations 15-2010 The supplementary information on taxes, duties and license fees in Note 46 of the financial statements is presented for purposes of filing with the We management. of responsibility the is information Such statements. financial basic the of part required a not is and Revenue Internal of Bureau applied necessary auditing procedures and found the same fairly stated. COMMISSION ON AUDIT DIARALCASAN B. IBRAHIM Supervising Auditor

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

44 2 2 44 2 2 FinancialCondition Statement of See accompanyingNotestoFinancialStatements. Cash onHandandinBanks Current Assets ASSETS Receivables -Net Inventories Prepayments Other CurrentAssets Equity Deferred Credits Retirement Payable Corporate Notes Loans Payable-Domestic Loans Payable-Foreign Non-Current Liabilities Other CurrentLiabilities Current PortionofForeignLoansPayable Payables toOtherGovernmentAgencies Accounts Payable Current Liabilities LIABILITIES ANDEQUITY Other Non-CurrentAssets Notes SinkingFund Investments inSecurities Property andEquipment-Net Non-Current Assets (In PhilippinePeso) (With ComparativeFiguresasofDecember31,2010) December 31,2011 Total Non-CurrentLiabilities Total CurrentLiabilities Total CurrentAssets Total Non-CurrentAssets Notes 22 21 20 19 18 17 16 15 14 13 12 11 10 5 6 7 8 9 104,781,623,586 104,781,623,586 11,341,316,942 96,366,623,823 88,134,418,269 98,899,198,969 4,098,112,655 1,001,613,107 2,000,000,000 1,000,000,000 7,859,022,444 2,975,291,612 1,121,536,951 1,059,361,868 4,945,565,372 5,882,424,617 611,032,690 360,323,003 482,294,498 534,764,421 846,463,438 589,045,901 351,676,327 132,304,392 39,361,773 2011 11,228,347,801 87,521,901,017 95,212,828,334 95,212,828,334 78,949,698,654 90,911,413,363 2,602,511,853 1,048,221,739 2,000,000,000 8,297,850,502 2,982,448,396 2,173,209,147 4,921,749,008 4,301,414,971 128,314,048 449,528,860 113,032,871 430,497,299 500,000,000 549,987,846 788,167,167 601,145,599 380,378,832 835,924,367 72,838,471 2010

43 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 2010 141,073 16,234,724 31,065,731 12,297,495 16,952,837 610,699,759 461,698,840 289,422,380 273,473,539 139,336,910 406,414,307 172,321,940 476,543,671 (533,373,996) (491,460,392) (835,418,538) 2,047,455,275 3,818,114,857 8,106,213,816 1,313,540,451 3,988,847,768 5,302,388,219 2,803,825,597 1,968,407,059 1,491,863,388 2011 (135,458) 1,882,666 32,222,596 16,315,538 25,727,022 736,178,651 467,333,635 302,558,515 301,426,854 137,683,775 361,439,002 138,285,471 770,139,564 (407,595,204) (544,780,290) (788,498,459) 2,097,142,504 3,905,717,619 8,359,901,355 1,442,563,971 4,208,764,548 5,651,328,519 2,708,572,836 1,920,074,377 1,149,934,813 27 28 29 35 36 37 30 31 32 33 34 38 39 40 42 41 43 44 Notes

For the Year Ended December 31, 2011 For the Year Ended December as of December 31, 2010) (With Comparative Figures (In Philippine Peso) See accompanying Notes to Financial Statements. REVENUES Wharfage Dues Income Share in Arrastre/Stevedoring Dockage Fees Pilotage Lay-Up Fees Other Income Port Dues Storage Charges Port Usage Fees Terminal Fees Vessel Traffic Management Service Fees OPERATING EXPENSES Personal Services Maintenance and Other Operating Expenses PROFIT FROM OPERATIONS OTHER INCOME/(EXPENSES) Fund Management Income Foreign Exchange Gain(Loss) on Revaluation Other General Income Financial Expenses Gain on Sale of Disposed Assets

NET INCOME BEFORE INCOME TAX INCOME TAX EXPENSE NET PROFIT Statement of Statement Income Comprehensive

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 44 4 4 ChangesinEquity Statement of TOTAL EQUITY Balance atEndofYear Provision forAdditionalDividends Dividends PaidDuringtheYear Net ProfitDuringtheYear Prior Year’sAdjustment Balance atBeginningofYear RETAINED EARNINGS Balance atEndofYear Adjustments inAssetsAppraisedValues Balance atBeginningofYear APPRAISAL SURPLUS Balance atEndofYear Donations receivedbyPMOIloilofromDOTC fromHolcim Donations ReceivedbyPMOGeneralSantos DevelopmentAuthority Donations ReceivedfromMindanao Balance atBeginningofYear Donated Surplus Balance atEndofYear Derecognition ofLand(Batalay-Legaspi) Balance atBeginningofYear National GovernmentContribution CAPITAL CONTRIBUTION See accompanyingNotestoFinancialStatements. (In PhilippinePeso) (With ComparativeFiguresasofDecember31,2010) For theYearEndedDecember31,2011

Notes 26 25 24 23 88,134,418,269 16,369,373,854 16,157,045,150 66,559,868,425 57,634,892,497 1,149,934,813 8,924,975,928 4,312,337,376 4,312,337,376 (509,802,691) (518,851,214) 892,838,614 845,423,631 91,047,796 47,227,028 187,955 2011 78,949,698,654 16,157,045,150 14,135,822,074 57,634,892,497 57,635,542,897 1,491,863,388 4,312,337,376 4,312,337,376 529,359,688 845,423,631 845,327,671 (650,400) - - - 95,960 2010 0 0

45 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 2010 - 441,625 (2,252,088) 62,227,402 31,867,167 (32,871,279) (29,218,778) 172,321,940 423,367,144 (529,866,126) (156,436,748) (148,571,511) (728,292,111) (880,505,789) 7,691,706,150 5,317,651,786 2,631,730,631 2,602,511,853 (2,313,238,322) (2,074,441,405) (1,544,674,827) (3,767,687,743) (1,576,930,733) 2011 96,883 40,176 (4,355,661) (36,416,499) (11,404,385) 138,285,471 387,166,022 434,869,645 247,290,131 828,234,696 500,000,000 (525,739,103) (908,379,029) (788,167,167) (961,289,797) 8,030,189,705 3,657,752,280 1,495,600,802 2,602,511,853 4,098,112,655 (5,017,989,975) (1,725,209,340) (1,253,812,625)

Deferred Credits, Net Net Cash from Operating Activities Net Cash Used in Investing Activities Net Cash Used in Financing Activities AND IN BANKS For the Year Ended December 31, 2011 Ended December 31, For the Year for the Year Ended December 31, 2010) (With Comparative Figures (In Philippine Peso) See accompanying Notes to Financial Statements. CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM Collection of Port Revenues Income Receipt of Fund Management Receipt of Other Income Receipt of Depository Liabilities Refund (Payment) of Guaranty Deposits, Net Remittance of Trust Liabilities Payment of Accrued Interest Net Acquisition (Disposal) of Property and Equipment, Payment of Operating Expenses Receipt (Payment) of Miscellaneous Liabilities/ CASH FLOWS FROM INVESTING ACTIVITIES Net Inflows (Outflows) from Investments Payments for Construction in Progress CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Term Loan Loan Repayments Dividend Payments Calamity Loans Collected(Granted), Net EFFECT OF EXCHANGE RATE CHANGES ON CASH ON HAND

NET INCREASE (DECREASE) IN CASH ON HAND AND IN BANKS CASH ON HAND AND IN BANKS AT BEGINNING OF THE YEAR CASH ON HAND AND IN BANKS AT END OF THE YEAR Statement of Statement Flows Cash

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 44 6 6 1. FinancialStatements Notes to Implementation • Generation • Completion • the accomplishments: improving and major developing its are following the 2011, CY For vision. at new its with line in ports aimed projects pursued PPA The employees, 2,116 of total PDOs andPMOs. a has PPA the at the positions filled 1,694 and personnel Office Head 422 of composed 2011, December 31 of As Offices thatareheadedbyPortManagers. Management Port over supervision exercising Office, District Port each heads Manager District Port A ports. terminal (64) four sixty and ports, twenty four (24) Port Management Offices (PMOs), twenty three (23) base (PDOs), Offices District Port (5) five are services line front the Delivering (17) departmentsperforminglineand/orstafffunctions. and Administrative Services. Under these executive offices are seventeen Legal Finance, for and Operations for Services, Engineering for each one program Managers, General Assistant (3) three and Manager General a by headed and policy its Board of to Directors composed vested for of nine are (9) members. Authority Its the top management of is powers Communications corporate The coordination. and Transportation of The PPA is a government-owned corporation attached to the Department and itsinstrumentalities. Philippines the of Republic the by indirectly or directly imposed charges other and imports fees, duties, taxes, all of payment from exempted not is PPA The program. port its under projects port execute to granted was authority and it under directly system port the or port of development rapid the insure to PPA the to reverted was autonomy corporate 1987, April 13 dated 159 No. Order Executive In operation. and development utilization, port optimum of requirements the to responsive more be to powers corporate PPA’s enhanced further 1980 April 11 dated 1005-A No. (LOI) Instruction of Letter as well as respectively, 1979, July 23 and amendments under Executive Subsequent Order (EO) Nos. 513 & 546, issued on 16 November 1978 country. entire the for system port planning, or ports the of optimize and operations and maintenance construction, financing, improve development, 1974, streamline, July coordinate, 11 to created dated functions are Its 505 857. was PD by No. 1975 December Authority) 23 (PD) on substitution by Decree the revised Presidential (PPA; of virtue Authority by Ports Philippine The AGENCY BACKGROUND Implementation • Evaluation • to becompletedbythefirstquarterof2012. expected are 60 and completed were which of 199 nationwide, ports which 2 were completed, 5 are still on-going, and the remaining 6 remaining were givennoticeofawards. the and on-going, still are 5 completed, were of 2 which Program Maintenance Harbor Revised 2011 the under channels o o o results: Term Public Investment Program (MTPIP), have the following positive on-going 57 capital projects, contained in the approved PPA Medium or 2.75%higherthanthepreviousyear. facilities in favor of 8 private corporations; Certificate of Registration / seating capacityof1,166. improvement of Passenger Terminal Buildings providing additional construction/ the with ports 13 in capacity passenger the in Increase with ports 14 in area operational completion of153,064squaremetersback-uparea;and / storage in Increase berth lengthof768meters; total a of completion the with ports 7 in capacity berth in Increase and of of P8,523.92 41 issuance of of capital dredging 286 million of maintenance projects Permit projects in revenue /Clearance and and which on which target repair covered to Develop was projects implementation P228.44 13 private port in various million areas/ port of 3. 2. Continuous • f ir u t te lpa, nldn Il Ptn Bt. h contract The Bato. Puting Isla including Slipway, the to up 2 Pier of Port comprising Harbour Harbor North of maintenance North and operation management, Manila to awarded development, PPA exclusive the for contract 25-year a (MNHPI) Incorporated 2009, October 18 On and Operation Management, Development, Maintenance ofManilaNorthHarbor the for Contract PORT OFMANILA MAJOR CONTRACTS/CONCESSIONARRANGEMENTS Project Computerization MIS commenced last13June2011. the for year one of period warranty The Fee the provision ofthecontract. with accordance Retention in withheld was million P67 expenses. about to administrative amounting and fixtures, and furniture hardware/equipment, IT software, consultants, contractor, to payment Total project cost as of 31 December 2011 is P1.36 billion which includes re-implemented in2011. then was AFMS (NGAS). System Accounting Government National the of requirements report and forms to conform to customized was software program interfaced an as between POMS using Portrade and developed AFMS that is using Oracle. The Oracle was (FIRST) System and Invoicing Receipting Front-end The software. Oracle using redeveloped was and deferred was implementation (AFMS) issues, system various to Due Information Executive System (EIS)isscheduledtoberolledoutin2012. The 2009. CY in out rolled were (PEMS) System Management System (AFMS) and Projects and Engineering Management Financial and Accounting The 2007. CY in out rolled were (LSS) System Support Legal and (RMS) System Management Records (REMS), System The program. Management PORTRADE Estate Real (POMS), System Management the Operations Port using system sub-systems the 7 Originally, of PPA. composed the was of processes business the of aspects Technology) Thru Ports of Management the as known Project, otherwise Computerization (MIS) System Information Management The PPA COMPUTERIZATIONPROJECT 5 years. to months 6 of duration varying with Authority Hold-over / Contracts to Operate to 4 private port operators; and, 18 Cargo Handling Service Permit toOperateinvariousports26corporations;Special o o o o o o compliance withbestpracticesinportoperations: Manila) withtheparticipationofprivatesector. in Terminal Bulk and Iloilo Zamboanga, Santos, General (Davao, ports major of Development (iii) and, ports; 4 in Take- (STUs) Units Over Special by handled operations handling Passenger cargo of of of bidding Completion (ii) Privatization ports; 3 (i) in operations (PTB) i.e. Building Terminal government the of scheme Partnership Private Public the with line in Initiatives Privatization System Management Environment and (PSHEMS) Health Safety Port E-Ticketing (PMOsBatangasandCalapan) International ShipandPortFacilitySecurityCode(ISPS) Vessel TrafficManagementSystem(VTMS) Management Quality Organization Systems (ISOQMS)Certification Standards International implementation RMT Poiig eibe prtos and Operations Reliable (Providing PROMPT of the oes h atmto o all of automation the covers following special projects in

47 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY to the 8.765 32.947 within 258.747 for 300.459 Total 8.074 additional 60.592 102.321 for rehabilitation, $170.987 payable installments, million

IT for 10.055 8.987 .362 .706 volume US$125 quarterly 1.930 projects 15.180 P120,000,000 123.075 100 140.185 In Million US$ than in the Equipment invest less to transshipment 6.473 payable 17.061 not 126.685 150.219 of implement million Infrastructure committed shall unattained is for US$600 investment of Fee Total Fee Contractor Contractor International Containers International Gen. Cargo Domestic Cargo construction and development of new facilities to be completed not later than 18 May 2013; works and other costs related to the construction of the Office building. PPA Head Infrastructure Equipment IT Total the 1st month of the succeeding year. The committed transshipment volume is pegged at 260,000 TEUs. development development and expansion accordance of with the the Investment Plan, South as be revised may, or Harbor from updated pursuant time to the to facilities 3rd Supplement. time of in Summary Investments to be implemented from Year 2009 follows: to 2022 are as be paid in advance not later than the 5th day of the every quarter without the need for demand; and, first month of • Lump sum fee of P670 million due on 20 May 2013; • Fixed As of 31 December Implemented 2011, Projects following from is 1998 a to Million): Summary 2011 in of aggregate Investments/ amounts (in Contract for the Management, Manila International Container Terminal (MICT) Operation and Development of In 1988, the Authority entered into an agreement with the International Container Terminal Services, management, operation and Inc. development of the (ICTSI), Manila International Container the Terminal (MICT) at the Contractor, , for control subject and supervision to of the the Authority. the It direct provides for the remittance of Fixed Fee and Variable Fee from its gross income which shall include source every from MICT the from Contractor the by generated income all and on every account except interest income, whether collected or not, to include but not limited to and Charges Stripping/Stuffing Fees, Cranage Revenues, Handling Cargo Harbor Dues, Berthing Fees, Wharfage, 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 from years 19 reckoned May 2013 (expiration of ‘Extended Term”- 18 May 2038). contract The provides for the following financial consideration‘Extended Term’: under the • Additional • Adjunct Fee in excess of 2.55 million TEUs. In 2007, a Supplemental Contract to the contract executed on 19 May 1988 as renewed in April the 2005 was authority signed to granting cargo the handling provide contractor services to arrastre, domestic vessels stevedoring consideration, and the cargoes contractor at and remits MICT. 10% In other of its from said gross domestic related operation, income billed/unbilled or derived collected/ uncollected due not later than the 5th day of every month (for prior month income).

The contract provides that US dollar denominated fees shall be paid in Philippine pesos using the Philippine Dealing System US$ = Php closing date. trading day prior to payment rate of the last Likewise, the contract provides for investment commitment from ATI. are: Among its highlights • The • The • Variable Fee of 20% of the gross revenue earned at the MICT. • Variable

the Fee and 10% with with Fixed LO-LO in of PTB Fixed and PPA throughput government share by adequate accordance existing operations, RO-RO of volume in operation, the for operations, government advanced from handling storage meters container remitted cargo 11 introduction cargo be cargo benefits to operations, to the up international service 10.5 accommodation with domestic to handling past containerized actual and non-containerized of cargo depth P6,818,855,000 case passenger in of productivity in berth Fee Fee international international international domestic amount of P20,600,000 per year for a period of five years for a total of anniversary year 4th the on made be shall payment First P103,000,000. of this contract but not later than the 15th day of the month it was executed. combined seating capacity of 1,020 passengers to a single PTB with a 1,900 seating capacity expandable to 3,800 seating capacity; set schedule for a period of 25 years, payable in advance than the not 5th later day of the 1st month of every quarter without need of demand. exceeds 1,900,000 Twenty Equivalent Units (TEUs). share of 14% of gross stevedoring revenues and government share of share government and revenues stevedoring gross of 14% of share 20% of gross arrastre revenues. of gross revenues. vessels from current depth of 6 meters and 8 meters, respectively; and, of P55,000,000; Variable Fee of 30% of annual gross storage revenues revenues storage gross annual of 30% of Fee Variable P55,000,000; of from international cargo storage operation in excess of P273,000,000 whether collected or uncollected; the and, annual gross Variable storage Fee revenues operations, whether collected or uncollected. of from domestic 10% cargo of storage Fee of US$9,000,000 and Variable Fee of 20% of gross revenue. appropriate equipment. The PPA Board of Directors dated approved, 2 June in 2011, MNHPI its development plan Board for Resolution Terminal and advance work consisting of (i) 1, construction of one single integrated 2254 Phase 1 Passenger Terminal Building (PTB) complex instead of reconstruction two works; small and, PTB (ii) extension of Pier 4 ON to Roll-OFF (RO-RO) consolidate and passenger Roll- operations, and provide sufficient are following The vessels. (LO-LO) Lift-OFF Lift-ON for berths water deep expected from these initial developments: • Increase • Increase • Reimbursement • From Fixed Fees are payable quarterly in advance not later than the 5th day of the first month of every quarter. Variable Fees, on the other hand, are every of first the of day 5th the than later not arrears in quarterly payable quarter (on or before January 5, April 5, July 5 and October year). 5 of The every Adjunct Fee is payable on or before January 31 following the calendar year of in which the required cargo the throughput has year been exceeded. • Adjunct authorized authorized MNHPI to collect cranage fees, terminal fees and other port charges. The management of cargo handling and collect to continues hand, other the on Harbor, North Manila at PPA the storage charges, charges such as Usage Fees, Wharfage and Vessel Traffic Management Services Fees. consideration: for the following financial The contract provides • Fixed • Increase • From • From Contract for Cargo Handling Services – South Harbor, Port of Manila of Port Harbor, South – Services Handling Cargo for Contract The latest contract entered into Contractor, with for the Asian management Terminal, and Inc. operation of (ATI), the South 3rd the Harbor Supplemental was Contract executed on extended 19 the contract up October to 18 May 2007 2038. The 3rd which Supplement covers areas/services under the (i) Lease Agreement dated covering certain areas of South Harbor intended 15 for use as international January 1997 expanded which Supplement 2nd the (ii) and areas storage domestic and the scope of services of the contractor to include the management domestic terminal facilities. of In consideration of the “Extended Term”, ATI shall remit to PPA from 19 May 2013 the following: • Lump sum fee of P282,000,000 due on 19 May 2013. • From

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 44 8 8

For • contract: said the under contractor the of obligations financial the are Following Building Terminal Passenger Fastcraft (PTB 3). the at services passenger and of Berth Cargo Port General constructed newly the the including I at Phase Batangas, services handling cargo provide and operate, to manage, contractor the authorized It years. 10 of October period a 20 for on effective 2005 (ATI) Inc. Terminal Asian to awarded was contract The and FastcraftPassengerTerminalPhaseI Services Handling Cargo of Operations the for Contract Term Long PORT OFBATANGAS for and EquipmentfromYear2005-2012. provided which Agreement Renewal MICT US$126.823 million as additional Port Development Program Civil Works 2005 the of C Annex was signed and was confirmed in Board Resolution No. 2213. It amended contract 1988 May 19 the to Contract Supplemental a 2010, June 23 On Annual • In consideration, the following shall be remitted by ATI, exclusive of VAT: on 25March2010foraperiodofyears. ATI to awarded was II Phase “A-1”, Terminal Container of promotion and and The contract for the management, Development operation, maintenance, development Maintenance, Promotion ofContainerTerminal“A-1”,PhaseII Operation, Management, For • Annual • later thanthe5thdayofeverymonthfor priormonth’sincome. not collected/uncollected and billed/unbilled whether facilities, reefer the of operation the for income gross the of 10% to equivalent VAT of exclusive share government of remittance the for provided contract The was contract The 2010. April effective foraperiodof10yearsrenewable foranother10years. 23 on the Davao of Port operate Wharf, Sasa outlets and the at reefer 144 manage least at construct, with structure/facility rack to reefer additional contract the awarded was Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) Permit toOperate PORT OFDAVAO quarter. the of start the quarterly from day 4 5th the in than later payable not advance in is installments rental The lessee. the by PPA to remitted be escalation of 5%, compounded annually beginning 01 January 2012 shall yearly to subject VAT of exclusive P4,000,000 of fee rental annual fixed A or extensionthereof. and/ renewal any including the 2015 October 20 until or with contract long-term co-terminus ATI, to awarded was Batangas of Port I, Phase at On 01 August 2009, the Lease Agreement for the properties and facilities Lease AgreementforPhaseI trading daypriortopaymentdate. using the closing reference rate of Bangko Sentral ng Pilipinas on the last peso Philippine in remitted be shall Fees Variable and Fixed Annual The xlsv o VT sbet o ery saain f % compounded 5%, of annually duringthetermofcontract. escalation yearly to P441,666.67 subject of VAT, fee of rental exclusive monthly of payment I, Phase at facilities port. said the at provided services handling related other and stevedoring and billed/unbilled collected/uncollected, from all sources in connection with its arrastre, whether gross cargoes, of foreign 20% handling for and income cargoes domestic handling from income gross omte yal pretg sae utpid y h contractor’s the actual grossincomeinPhilippinepeso,whicheverishigher. by multiplied share percentage yearly the committed or peso Philippine in income gross projected the by multiplied cargo leasing Fixed Variable handling and Fee operating in Fee US and equivalent dollars related the totaling Fastcraft services, to US$125.46 the Passenger remittance yearly million percentage Terminal of 10% for 25 and of years. share the its 4. the RCIT. than higher if paid is income, gross of (2%) percent two to equivalent is which (MCIT), Tax Income Corporate Minimum prescribed the amended, Pursuant to Section 27(E) of the 1997 National Internal Revenue Code, as the computationofRegularCorporate IncomeTax(RCIT). in deduction allowable as expense depreciation the of instead year the or taxcreditoninvestmentinfixedassets orcapitalexpendituresduring deduction special the for opted PPA The 1975. December 28 dated 857 PD of 25 in Section under allowed is credit investment tax The declared. is on assets fixed credit tax less income net purposes, tax income For Income Tax in share dues, wharfage as arrastre/stevedoring income,dockagefeesandportdues. reclassified/distributed was income the 2011, In account. one as presented was fees ICTSI from Income 2010, In and expensesarerecognizedastheyearnedorincurred. income wherein accounting of method accrual the uses Authority The Recognition ofIncomeandExpense infrastructure projects. and services of delivery covering contracts for accomplishment physical The obligation to pay is recognized when goods are received or based on after thebalancesheetdateispresentedasCurrentLiability. long-term loans payable due for payment within of the next twelve months Portion Liabilities. Non-current or Current as classified are Accounts Liabilities Assets. Non-current and Current were ‘Restricted Cash’ used is presented under Non-Current Assets as in prior years. categories major The Assets with stateaccountingprinciplesgenerallyacceptedinthePhilippines. accordance in presented generally and statements financial years’ prior with consistent are Income Comprehensive ofFinancial of Statement and the Statement Position in items of classification and Presentation COA Presentation ofFinancialStatements the with COA under Accounts conform of Chart to NGAS the of Circular No.2004-002. use manually the on converted requirement is Circular Balance COA under Trial Accounts generated of system the circular, said the Chart of recall the With NGAS No.2008-006. the uses system The PPA report. consolidated and report PDO consolidated PDO/PMO, each for reports accounts, From’ financial of generation the To/Due allow OU each for ‘Due codes of assignment and the through entries automated of use accounts, Clearing (OU). Units’ ‘Operating as termed are which PMOs, of book single a sub- accounts only in recording the uses financial a transactions of System Head Office, PDOs and Computerized (AFMS), PPA System the of Management system Financial and Accounting The amount investedbytheAuthorityinitsfieldoffices. the indicates Office Head the at maintained Account Subsidy the PDO/PMO while PMOs, and PDOs the at account Subsidy Account capital Office customary the Head takes The reciprocal offices. PPA among and Branch accounting is maintained to account for the transactions between the different Port Districts and Port Management Offices of the Authority. The PPA financial statements include the accounts of the Head Office and Head OfficeandBranchAccounts General Ledger and were usedasbasisinthepreparationoffinancialreport. Balance Trial generated system time, first the For were that prepared usingthehistoricalcostconvention. disposal for assets those and adjusted to their net realizable value, the financial statements have been 2011 June 19 last revalued were that assets fixed for Except Philippines. the in accepted generally presented principles and accounting state with accordance 2004-02 in statements financial the No. Circular (NGAS) COA System under Accounting prescribed Government accounts New the adopted PPA The Basis oftheFinancialStatements SUMMARY OFSIGNIFICANTACCOUNTINGPOLICIES

49 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY and 2010 559,990 30 29,088,731 24,310,371 47,074,074 82,090,876 846,880,662 876,529,383 799,255,118 129,083,223 282,558,544 248,966,621 (77,274,265) (33,591,923) 1,048,221,739 2,602,511,853 2010 275,745 136,556 Section 27,356,383 2,574,743,169 with 2011 2011 34,126 144,633 39,239,626 536,156 815,211,511 838,162,790 22,415,123 33,730,872 32,110,872 35,137,082 141,978,221 214,063,659 787,549,448 242,957,047 (28,893,388) (50,613,342) consistent 1,001,613,107 4,058,694,270 4,098,112,655 Government National represents the realizable value of promissory notes the by Section 10B (i) of PD 857. Cash in Bank Cash-Collecting Officers Cash-Disbursing Officers Cash-Other Officers • of port areas pursuant to Section 6.b (x) of PD 857. Reclamation Land purchased by the Authority is covered of Title, with while property Transfer transferred from Certificate the National Government and Executive and Proclamations by covered are sea the from reclaimed land Orders. To date, a total of 41 ports have been issued with the covering jurisdiction administrative PPA granting Orders/Proclamations Executive over the pieces of property. Buildings / structures approved constructed development or by investment operators/contractors plans management contracts are not included as assets of the Authority. Such as under provided for in properties shall the only be recognized in the book of the Authority when these assets are turned over to PPA at the expiration of the contract on an ‘as is’ basis. Unserviceable assets and those identified for disposal are derecognized and reclassified to ‘Other Non-Current Assets’. Difference between the net book value and residual the value of disposal/sale the from received is amount actual between Difference recorded as loss for the period. asset and the carrying value (residual value) shall be recognized as gain or loss on disposal for the period. CASH ON HAND AND IN BANKS The breakdown of this account is as follows: Receivables-Trade Accounts Receivable Notes Receivable Interest Receivable Less Allowance for Doubtful Accounts Other Receivables Due from Officers & Employees Due from NGAs, GOCCs & LGUs Due from Operating Units & Other Funds Miscellaneous Receivables Less Allowance for Doubtful Accounts increment and their related accumulated depreciation are removed from from removed are depreciation accumulated related their and increment the period. for or loss is recognized resulting gain and any the accounts Depreciation is computed based on the appraised value of the property, net of ten percent (10%) residual value, using the straight-line method over the estimated useful lives of the Memorandum assets in Circular accordance with No. PPA 37-2005 Circular No. 2004-003. issued in conformity with COA Infrastructure projects are valued following Theory. the The Construction costs of Period on-going projects and accounts projects are payable based on on actual the physical accomplishment reported by the Engineering Office. and equipment is acquired either thru: Land that forms part of property • Purchase • Transfer Accounts Receivable - Trade refers to the amounts due from port users/ customers arising from expected to be collected within the allowable credit period. trading or business transactions that Notes Receivable are issued by port users to accounts, payable within specified repayment period. cover the assessments of their restructured RECEIVABLES This account includes the following: 5.

6. 100% Collection Nil Chance of Dormant with 365 60% Over 40% 181-365 20% 91-180 10% 31-90 5% 1-30 For loans identified with loss completed or profit in recognized is loss or gain the projectsassets, invoiced acquire and those used to for the period. For loans related to assets still in-progress, the difference is capitalized and included foreign in the carrying amount of exchange the Fixed Asset-In Process. For other foreign currency period the for loss or profit in recognized is loss or gain the transactions, currency, i.e. deposits in foreign similar to item a. A/R Trade Age (Days) of Rate of Allowance Inventories Inventories of accountable forms, supplies parts, and except for PPA materials, dredgers, are and valued at spare cost, net of Tax (VAT), using the moving average method of costing. Value-Added In conformity with COA Circular small but year a 2005-002 than more of life dated useful estimated with items 14 expendable April 2005, semi- enough to be considered as property and equipment part of the inventory upon acquisition. are Items issued during the year are considered year. treated as expense, charged to profit or loss of the current Pursuant to PPA Memorandum Circular No. 35-2003 dated 8 December with contract under are which dredgers PPA for needed parts spare 2003, F. F. Cruz and Company should be sourced first from thethe stockAuthority pileand of shall be valued at the prevailing market price issuance to the Contractor. upon Consistent with the provision of PAS 2, Inventories, the value of parts spare for dredgers were written down to their net mentioned realizable value. in As the standard, the practice of below writing cost inventories to down their net that realizable assets should not value be carried is in excess of consistent amounts expected to with be realized from their sale or the use. Further, the criteria on the recognition as view an expense of the amount of write down of inventories to net realizable applied. also was loss or down write the of period the in losses and value With management’s intention to dispose the asset, the inventory reclassified to ‘Other Assets’ using their net realizable value. was Investments Investments in the form of Treasury Bills and Treasury Bonds and Land Bank of the Philippines-issued withholding taxes. bonds are valued at cost including Property and Equipment Property and equipment of the appraisal of Authority periods the between in additions are for except values appraised carried in the books at which are recorded at acquisition cost net of VAT. Appraisal of assets is done by an independent appraiser once every five years pursuant to the Authority’s loan covenants with the World Bank and COA Resolution No. 89-17. Upon retirement or disposal, both the assets’ cost and appraisal Foreign Exchange Transactions Foreign 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 Sentral ng Pilipinas (BSP) guiding rates prevailing at the time of issuance 15-day average Bangko of the invoice, computed by the Commercial Services Department, shall be used in determining the peso value of the dollar-denominated port charges due to PPA. Meanwhile, prevailing rate guiding BSP the using pesos into converted are operators the remittances of cargo handling at the time of payment in conformity with with the PPA. their contract agreements PPA Finance Memorandum Circular monetary No. asset or 01-2003 depository provides account and that foreign liabilities currencies denominated the should in be restated treated are differences exchange Foreign using date. reporting of as exchange the BSP guiding rate of as follows: a) b) c) Provision for Doubtful Accounts Receivables are valued at face amounts minus doubtful allowances accounts set and for up any for anticipated adjustments normal course of which, events, will reduce the amount of receivables from the in the debtors to estimated realizable values. PPA Finance Memorandum Order No. as follows: prescribes the rates on provisions for doubtful accounts, 02-2009 dated 22 April 2009

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 55 0 0 7. the provision of PAS 1 on classification of current and non-current assets. with accordance in Assets’ ‘Other to reclassified was value realizable net Since management has the intention to dispose the asset, the remaining period. the for loss impairment as recognized was P59.44 to amounting P38.270 million. The balance of between the recorded value value and net realizable realizable value net its to adjusted was value recorded disposal. The of purpose the for 2011 February 15 on Inc. Metrics Value by appraised was million P97.716 to amounting Department Maintenance The spare parts for and PPA Dredgers in the custody of the supplies Head Office Harbor other and materials materials. construction parts, spare forms, accountable supplies, office of balances inventory includes account This INVENTORIES Accounts the days of number Receivable hadremainedoutstandingasshownbelow: the to according determined as 2009 rates prescribed in PPA Finance Memo Order No. 02-2009 dated 22 April the with conformity in provided Accounts Doubtful for Allowance The and auditdisallowanceswhichhavebecomefinalexecutory. ofoverpayments forrefund employees and officers accountable from Miscellaneous Receivables fundsof variousport for advances development projects. cash therevolving the andunsettled to offices the Authority, terminal remittance or of field for due Offices are Management that Port (STUs) Units Funds Take-Over Other Special & Units Operating from Due accrued includes also interests oninvestmentsinTreasuryBillsandbankdeposits. account The Benoni. port at by projects affected development families of by for expenses issued Camiguin relocation of and million government acquisition land provincial P4.20 the to to Oro amounting de Cagayan advance PMO cash a is Included government. the of units local and corporations bureaus, departments, LGUs & GOCCs, NGAs, from Due andcash advances fortravelgrantedtoPPAofficersandemployees. taxdeficiencies, for receivables employees, and officers PPA Employees and Officers from Due on unpaidaccountsduefromportusers. imposed charges penalty and interest of comprised is Receivable Interest AccumulatedDepreciation Net CarryingValue Cost At December31,2011 Adjustment on Prior Years’ Depreciation CarryingValue Closing Net Depreciation fortheYear Disposed/Retired/Adjustment Appraisal Completed/Transferred Investment Additions/(Deductions): Opening CarryingValue Net CarryingValue Accumulated Depreciation Cost At December31,2010 No. ofDays 91-180 31-90 1-30 181-365 Over 365 Dormant Past Due 100% Rate 20% 10% 40% 60% 5% represent past due receivables and amount due consists of the amounts due from various from due amounts the of consists Past DueAccounts 13,387,938 69,920,020 10,482,091 77,930 7,158,188 8,319,775 nlds aaiy on gatd to granted loans calamity includes Receivable Improvement

66,999,671 66,999,671 Land & 60,316,705 (44,322) 60,316,705 60,316,705 Land 67,043,993 6,209,805 517,483 (20,002) oes h nt noe of income net the covers (24,320)

- Structures and Other Buildings 22,816,432 24,194,320 Amount of 24,194,320 37,565,905 (14,749,473) 3,556,965 415,989 50,613,342 (17,899,786) Provision (1,550,631) 42,094,106 22,816,432 (1,599,682) 41,952,012 971,236 2,096,418 5,355,174 715,819 77,930

Construction Progress 2,714,740 2,714,740 2,815,321 (1,796,457) 2,714,740 1,695,876 2,815,321 2,815,321 in 9. 8. 10. - - -

The breakdownofthisaccountisasfollows: OTHER CURRENTASSETS other prepaidexpenses. to upon remittance and interest prepaid includes also account The 2012. 25, January on BIR credit tax as to offset be amounting to 2011 is of which quarter million P107.65 4th the for VAT output net includes It charges. study feasibility and payment, VAT output excess payment, tax income excess as such charges deferred to pertains Prepayments Other commercial banks,bankguaranteesorsuretybonds. from Contractors, values equivalent of to credit of payments letters irrevocable with progress secured are from deductions thru repaid are which advances, The 9184. Act Republic to pursuant granted are price contract total the of 15% exceeding not Contractors to Payment Advance the coveringtaxcreditcertificatesagainstfutureliabilities. of use the or withheld amount the creditable of refund cash allows Code Revenue or expanded of real property and other port facilities. Section 76 of the National Internal amounts of rental and wharfage the from users port by deducted taxes of withholding consist Taxes Prepaid This accountincludesthefollowing: PREPAYMENTS This accountiscomposedofthefollowing: PROPERTY ANDEQUIPMENT others. deposits as and such Authority, the by occupied buildings obligation, of lessors PLDT, , with of performance guarantee to suppliers Deposits Guaranty of remittance the Output VAT. from deducted or credit tax as applied be may services that and goods acquired for Authority the by paid VAT of balance (VAT) Tax Added Value Miscellaneous-Input Others Guaranty Deposits Miscellaneous-Input VAT 105,068 Other Prepayments Procurement Service Prepaid Insurance Advance PaymenttoContractors Prepaid Taxes (Amounts inThousands) Vehicles Motor 1198,062 70,360 (127,702) 105,068 20,554 70,360 (42,216) (11,377) (69,683) 147,284 96,863 (1,649)

Equipment Machinery 1,643,780 1,643,780 (612,127) 319,676 (131,071) 1,233,090 174,927 (144,749) 2,255,907 and 174,927 oss o te mut dpstd ih contractors/ with deposited amounts the of consist (336,307) 703,141

(440,838) Equipment Office 1,018,624 1,018,624 1,579,402 433,218 433,218 (814,719) (560,778) 109,373 (82,214) 874,056 202,154 132,304,392 123,136,740 etis o h crid over carried the to pertains 611,032,690 151,721,972 201,998,455 211,406,014 8,883,372 14,143,804 31,762,445 284,280 Assets Other Fixed 1,162,626 1,079,440 275,827 (886,799) (769,908) 275,827 309,532 (44,990) 83,186 309,532 2011 (71,901) 2011 87,521,901 96,366,624 116,292,712 103,874,511 96,366,624 11,013,363 87,521,901 TOTAL (1,796,457) 3,314,522 (19,926,088) (16,352,610) 449,528,860 194,315,625 150,527,568 (1,840,285) (113,227) (1,733,193) 72,838,471 63,621,456 67,413,403 14,291,617 22,980,647 8,980,255 236,760 2010 2010

51 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY - 2010 509,175 45,402,624 196,867,637 2,739,668,960 2,982,448,396 2011 466,337 72,365,030 221,477,610 509,802,691 2,171,179,944 2,975,291,612 are obligations incurred in the procurement of account pertains to the balance of a P20 million represents the balance on advances made by the account pertains to the balance of the Special Trade/Business Payables Due to Officers and Employees Dividends Payable Accrued Interest Payable Intra-Agency Payables have remained unsettled to date. The accounts are subject of books. the in a closure/derecognition for Audit previous on Commission the to request Evaluation of the request and cannot submission be by Management completed of Resubmission pending of the additional request, completion together supporting with the required documents. documents was done by Management in August 2010. carrying values of serviceable assets but no longer used in port operations The account also includes disposal. of unserviceable assets awaiting and the value the Receivable from MNHPI Authority in payment of the past service benefits ofSpecial Take-Over Unit port(STU) United Dockhandlers workersInc. (UDI) of PMO North at the Harbor. As stipulated in Section 3.02-b of the Contract for Management, Development, Operation and Maintenance at years of five in reimbursed be shall amount the 2009, November 19 signed the Manila North Harbor P20.6 million per year, starting on the fourth year, by the winning bidder, Inc. (MNHPI). the Manila North Harbour Port, Restricted Cash Deposits pertain to the either kept in funds fixed-term deposits at the held BTr, Land Bank of in the Philippines, escrow which Development are Bank of the Philippines and the Philippine These funds Veterans are Bank. earmarked for the settlement of claims for Case NLRC No. SCREB VI-05-50142-06 and claim for real estate tax case Iloilo. at the Port of Deposits with the BTr Account kept with the BTr in project for pursuant advances PPA of reimbursements as to well as remitted, Collections the requirements of PD 1234. expenditures financed by foreign loans,through the then Central Bank of are depositedthe Philippines. The account is similarly several to for inactive is it since books PPA in off write for this account request with covered account this of use The BTr. the of books the in found longer no is and years No. 159. was discontinued with the issuance of Executive Order Receivable from the PNR loan that was granted to the Philippine rehabilitation National of existing Railways railways from (PNR) , the in Manila (FTI) for Inc. International Terminal, Container Food the the to Manila Area, Port in (MICT) Terminal . The outstanding balance of P18 million remained unsettled despite series of negotiations with the PNR. Services Department and the Thus, Office of the Government Corporate Counsel officials PPA-Legal of (OGCC) decided to submit the case for arbitration before the OGCC/DOJ. The account is provided with a 100% allowance for uncollectibility. ACCOUNTS PAYABLE This account is composed of the following: Trade/Business Payables goods and services from private suppliers and conduct of entities business operations. It arising also includes from liabilities arising the from the decision of the Supreme Court on PPA vs. Acosta, et al Civil Case No. 5447, expropriation case of property for Phase II, corresponding Batangas to the additional cost of lots and interest due Port from Development Project 2001 to 2011 were recorded in this account. Dividends Payable - PPA remits 50% national of government its in net accordance income with the after No.7656.This non-adjusting event after the balance sheet date are required provision tax of to Republic the 2011, in Act However, Statements. Financial to Notes the in only disclosed be to payment of the balance of dividend arising from the CY 2010 operation of PPA was deferred upon instruction from the Department of Finance. The amount was recorded in the book since they meet the criteria of a present obligation in CY 2011. This was remitted in January 24, 2012. Due to Officers and Employees consists of liabilities set-up for the payment of services rendered by employees i.e., incentives, salaries, overtime, allowances, bonuses reimbursement and of claims due to PPA personnel. official expenses, and other payment for due interests of amount the to pertains Payable Interest Accrued on foreign loans acquired from various creditors. Intra-Agency Payables pertains to Special Take-Over Units transactions. 14.

2010 2010 270,000 107.90 863.16 5,096.15 3,061,712 1,304,172 6,067.21 22,030,546 18,748,154 18,000,000 18,000,000 347,002,804 232,727,700 102,506,548 398,378,832 380,378,832 1,825,936,343 2,173,209,147 Carrying Cost 2011 2011 184.33 2,238.76 2,446.71 4,869.81 270,000 - 95,431,045 22,279,044 18,748,154 18,000,000 70,815,778 165,527,314 102,506,548 422,492,105 351,676,327 809,690,553 249,401,315 Depreciation Accumulated 1,059,361,868 292.23 7,334.92 3,309.87 10,937.02 Cost 2011 (In Million Pesos) Reproduction As of 31 December 2011 is substantially comprised of the costs of projects Contractors under Existing Contracts Aggregate Value of Assets with Private Operators/ Aggregate Value of Assets with Location PMO Batangas PMO South Harbor PMO North Harbor Others Non-Operating Assets Receivable from MNHPI Restricted Cash Deposits Deposits with the BTr Receivable from the PNR Items in Transit Less Allowance for Doubtful Accounts

Treasury Bills Non-Operating Assets implemented by the Department of Public Works and Highways (DPWH) amounting officers accountable its to advances cash of issuance the thru to P109.58 million, and another P10.80 million issued in 1977 which The holding period of the T-bills, with interest days. rates The of Land Bank 1.780% bonds consist is of 364 25-year, 6% bonds that free; are whereas the Treasury tax- bonds with holding period of 1,032 days and interest rate of 5.25% will mature on 07 January 2013. NOTES SINKING FUND In accordance with the Sinking Fund Management Agreement covering the issuance in year 2007 of P2.0 billion Corporate Notes, the PPA shall establish and maintain a Sinking Fund with the Bureau of the Notes the redeeming Treasury of purpose the for Manager, Fund Sinking the (BTr), upon maturity in 2015. The amount of P262.013 million shall be payable annually on every anniversary of its issue. 2010, and 2011 December 31 of as million P835.92 and million P1,121.54 The Fund accumulated to respectively, inclusive of interest earned. OTHER NON-CURRENT ASSETS This account consists of the following: INVESTMENTS IN SECURITIES This account represents funds projects and earmarked for for the retirement various benefitsinvested in the following: infrastructure of PPA personnel that were The value of land includes Supreme Court En Banc the in G.R. Nos. 154211-12, 158252, 166200, 168272, cost of Entry settlement, the of Part million. of P125.15 to amounting 173392 and 170683 Judgment from the representing interest due from the date of acquisition of the by property PPA up to 31 December 2011, expense for the period. recognized as amounting to P129.95 million was this reporting period. of fixed assets was conducted The latest appraisal The value of Construction in Progress corresponds to the percentage of 31 of as Office Engineering the by reported as project each of completion December 2011. This account also includes various fixed assetsof recorded PMO South in Harbor, the books PMO Batangas and PMO North currently Harbor that being are managed by private existing management operators/ contracts. contractors depreciation under The and aggregate carrying amounts cost, of accumulated the asset following page: are presented in the Treasury and LBP Bonds Others

12. 13. 11.

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 55 2 2 15. 18. 17. 16.

otiuin, n la aotztos As icue ae iblte for advances madebyothergovernmentagenciesforspecificpurposes. liabilities are included Also amortizations. loan and contributions, the involving due for are payables remittance in payment of taxes, that employees’ insurance premium personnel inter-agency of salaries of from withheld deductions mandatory comprised is account This PAYABLES TOOTHERGOVERNMENTAGENCIES Below isthebreakdownofaccount: LOANS PAYABLE-FOREIGN Other Payablesincludeliabilitiesfortherelocationofinformalsettlers. the performanceofcontracts. guaranty to required those than other deposits are Liabilities Depository for PantalanUniondues,andEmployees’Cooperative. personnel of salaries on deductions and services, and goods contracted from of withheld delivery and performance fees the guaranty to retention contractors and suppliers of substantially consist Liabilities Trust OTHER CURRENTLIABILITIES the following year. on repayment for due or loans foreign debts on amortization long-term principal on the obligations maturing represents amount The CURRENT PORTIONOFFOREIGNLOANSPAYABLE deferred taxassetofpreviousyear’sexcessincomepayment. taxes of P476.54 million and the balance of P34.60 million was offset from three the For income for million P441.34 BIR to remitted already PPA 2010, of quarters provided. was tax income for provision no 2010, CY For tax income to withholdingtaxoncompensation,EWT,CVAT,andothertaxes. for provision 2011 CY pertains million P58.37 includes remaining the and million P414.65 to amounting account BIR to Due The JBIC-PH-P61 ADB-875 JBIC-PH-P84 JBIC-PH-P91 JBIC-PH-P122 JBIC-PH-P172 JBIC-PH-P187 JBIC-PH-P187A *Equivalent toUS$198,176,240 @P43.928perUS$1.00. Current Portion KFW-D2-P2 KFW-D1-P2 Other Payables Tax RefundPayable Performance/Bidders Bonds Current Portion-Retirement Depository Liabilities Trust Liabilities Due toPhilhealth Due toLGUs Due toPag-IBIG Due toGov’tServiceInsuranceSystem Due toOtherNGAs Due toNationalTreasury Due toOtherGOCCs Due toBIR Payable Payable Account Loan Interest Rate 3.00 6.53 3.00 3.00 2.70 2.30 2.20 2.20 2.00 2.00 %

20.0Dec.2011 20.0Dec.2011 20.5 Sept.2013 20.0 Oct.2012 20.0 Sept.2028 31.0 Sept.2038 20.5 Jan.2018 20.5 Jan.2018 20.5 Mar.2027 20.5 June2021 154,692,718 101,853,889 202,271,511 66,211,397 No. ofYears &Maturity 707,395 589,045,901 534,764,421 2011 473,023,659 Date 9,027,511 31,644,699 73,696,557 3,680,060 5,508,320 119,913 681,060 691,633 2011

601,145,599 470,287,912 549,987,846 148,573,272 138,270,388 193,902,544 12,818,357 27,169,682 80,230,795 30,202,499 35,157,714 4,551,753 4,981,733 3,881,429 $ 126,318 979,049 13,788,000,000 Amount 43,083,327 5,497,049,624 Loan 2010 169,794,479 169,158,544 502,889,141 767,000,000 2010 61,381,669 2,388,410 306,775 21. 20. 19. as follows: date, reporting of as salaries basic their on based personnel of credits leave accumulated of value money present the including retirees, the to amount sum lump pay to mandated is Agency the wherein 1616, (RA) Act Republic under retire to qualified personnel PPA of gratuity retirement the of value This account represents the amount earmarked to cover the present money RETIREMENT PAYABLE redeem theNotesuponmaturityin2015. expense in the period of release. A sinking fund (Note 12) was established to as recognized were notes the of issuance the in incurred charges other and taxes The respectively. 2008, May 13 and 2008 March 14 on released were 18 July 2007. The second and third tranches amounting to P500 million each by the Republic of the Philippines amounting to P1.0 billion was released on guaranteed Notes Corporate the of tranche first The quarter. every payable 7.783%, of rate interest fixed with Notes Corporate seven-year billion P2.0 a of issuance the for 2007, in Philippines the of Bank Development the with Agreement Underwriting and Management Issue an into entered PPA The CORPORATE NOTES payment semi-annual date. seventh the on starting amortizations equal eight in payable is principal The period. grace years three of inclusive release of date the from years seven of term a has loan The period. calendar 360-day a on computed and quarterly payable is Interest daily. 11:16am at tenors benchmark original 12 the for banks market-making designated by posted rates BID firm of 60% best the of average calculated the as PDST-F defines rate plus a spread of ½%. The Philippine Dealing and Exchange Corporation PDST-F year one the on based annually re-priced be will interest Thereafter, rate at the date of drawdown for each tranche, plus a spread of ½% (0.50%). PDST-F three-year the on based years, three first the for rate interest fixed a has It 2011. June 17 on released was tranche second ofport the and 2009 May 27 on construction released was million the P500 to amounting finance tranche first The to facilities. Bank Veterans Philippine the from acquired facility loan two-tranche billion P1.0 the to pertains account This LOANS PAYABLE-DOMESTIC Less PaymentofRetirement Balance asofJanuary1 Total RetirementPayable RetirementGratuity AccumulatedLeaveCredits Add ProvisionsfortheYear Retirement Payable– Less CurrentPortion In ForeignCurrency Benefit DuringtheYear Gratuity andTerminalLeave December 31 Non-CurrentPortion ¥507,926,094 11,012,022,000 2,547,387,000 380,184,000 903,582,000 16,560,000 19,461,000 53,612,000 - - Outstanding Balance P 7,859,022,444 P 286,368,732 (846,463,438) 1,436,216,790 8,705,485,882* 6,208,578,004 214,347,739 509,439,531 10,972,112 30,226,446 9,336,528 - 2011 - 2011 465,655,013 548,505,895 482,294,498 (64,158,424) (66,211,397) 95,900,312 51,108,994 In Peso

P 520,216,578 P 8,297,850,502 1,513,067,434 6,265,970,071 9,086,017,669 (788,167,167) 414,794,203 465,655,013 430,497,299 217,492,229 503,569,595 (35,157,714) (49,197,621) 78,371,811 21,686,620 13,349,016 12,067,317 33,243,564 6,151,707 890,158 2010 2010

53 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 2010 6,746,773 8,253,734 2011 7,352,565 10,829,560 Other Permits and Licenses Permits and Licenses Permit Fees journey at the port of loading or embarkation. journey at the port of loading or embarkation. VESSEL TRAFFIC MANAGEMENT SERVICE FEES PPA Administrative Order No. 03-2006 dated 16 June 2006 authorized the collection of the Vessel Traffic Management Service (VTMS)vessels domestic and international Fee.all in collected/assessed fees includes It entering, departing, navigating, within the VTMS covered areas. operating, and anchoring/mooring PILOTAGE This represents the government required to be share performed by the harbor on pilots to maneuver vessels the to/ service from the rendered ports as or required or as district. deemed necessary in each pilotage LAY-UP FEES 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. OTHER INCOME Breakdown of this account is shown below: The account includes P2,265,702,117 income and P2,215,877,095 in 2011 from and 2010, respectively, ATI ICTSI for South Harbor and Batangas for operations and MNHPI for North Harbor MICT operations operations. of DOCKAGE FEES engaged vessel a against assessed amount the is fee berthing or Dockage in international (foreign) trade for berthing. It is levied on cargo vessels and/ discharging of purpose the for stay of days of number the on based 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. The account includes income from ICTSI of P98,823,684 and respectively. P89,802,094 in 2011 and 2010, PORT DUES Vessels engaged in foreign trade, including trade, those that engaged enter any in port, barter whether private or government-owned, for loading and discharging cargoes, embarking/disembarking passengers, bunkering or taking provisions or repairs the crew and are charged with port dues changing based on the vessel gross members revenue of tonnage (GRT). It is a one-time charge assessed against vessels anytime that they call at the port. The account P78,635,198 and P78,232,337 in 2011 and 2010, respectively. includes income from ICTSI of STORAGE CHARGES Storage fees are charges on cargoes that warehouses remain or in the in cargo the sheds, open port storage beyond area the of “free storage any period” government-owned allowed. in storage Increase revenue or can decrease be attributed to the number of shippers/port users availing of storage services. growth or decline in the 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). TERMINAL FEES the of use the for vehicles on charge amount the of consists account The sea–leg per a on PPA the by collected is which services and facilities port 34. 35. 36. 37. 29. 30. 31. 32. 33. 2010 6,883,029 14,314,441 91,835,401 113,032,871 2011 20,814,777 13,346,830 360,323,003 326,161,396 The value of assets (including port facilities, quays, wharves, and equipment) and such other property, movable and contributed or immovable transferred by the Government and its valued at the agencies date of the contribution or transfer after deducting the loans and other liabilities of the Authority. The initial cash appropriation of P2.0 million out of the funds the National of Treasury and further sums, including working capital contributed by the National Government. Other Deferred Credits Deferred Credits to Income Output VAT CAPITAL CONTRIBUTION EO No. 513, amending PD 857, increased the authorized capital of the to P5.0 billion. Authority from P3.0 billion Government Contribution to the Authority consisted of: as initial paid up capital a) b) DONATED SURPLUS Donated Surplus represents the amount of cash or property received as donations from entities other than the National Government. APPRAISAL SURPLUS Appraisal increase, which is and the the appraised value of fixed difference assets, is added between to the carryingof historical value property cost and equipment. cumulative Appraisal amounts Surplus corresponds of to independent appraisers in the conduct of appraisal of PPA the Fixed Assets, appraisal increases once every five years. The last appraisal was this year. determined by hired RETAINED EARNINGS This account represents the PPA recorded from the cumulative start of net its profit operation, BTr. net of of Pursuant the the to dividends Section paid 5 to of the Authority declares RA and remits 7656 fifty percent (50%) dated of its 9 annual earnings November 1993, the as dividends to the National Government. For Cy 2011, PPA remitted to the National government thru the BTr dividend in the amount of P700 million computed based on unaudited financial figures. It was paid on 24 January 2012 as evidenced by Official Receipt No. 5444070. WHARFAGE DUES This refers to the charges levied on loaded/unloaded cargoes whether imports, exports, computation inbound, is based on metric ton for non-containerized cargoes and outbound, per or box for containerized cargoes. The transshipments. account includes income ICTSI of P385,621,449 and P376,431,967 in 2011 and 2010, respectively. from The SHARE IN ARRASTRE / STEVEDORING INCOME earnings or receipts the on share government the represents account This 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 ship’s tackle with the use of dock gang other and hand, stevedoring cargo service covers handling the discharging equipment. and loading of vice- and dock/apron the to vessel the from On empty, or loaded containers, the versa, and the opening and closing of hatch covers, lids and supporting beams. DEFERRED CREDITS DEFERRED This account includes the earned or realized, amount such as Output Vat on income earned that is of due for income received remittance to the before Bureau of Internal Revenue it and amounts received in is advance on leased property and deferred tax liability representing final tax from interest income earned or realized by investment/placements. the Authority from its 23. 24. 25. 26. 27. 28. 22.

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 55 4 4

38. The breakdownofexpensesincurredforPPAemployeesfollows: PERSONAL SERVICES Other Benefits Children’s Allowance Meal Subsidy Medical Allowance Monetized Leave Rice Allowance Retirement Benefits Other PersonnelBenefits ECC Contributions PAG-IBIG Premiums PHILHEALTH Premiums Life/Retirement Insurance Personnel BenefitsContribution Longevity Pay Hazard Pay Additional Compensation Productivity IncentiveAllowance Honoraria Clothing/Uniform Allowance Transportation Allowance Cash Gift Representation Allowance Personal EconomicAssistance Year-end Bonus Fines andPenalties-Permits Overtime andNightPay Other BonusesandAllowances Other Compensation Salaries andWages Seminar andPassenger Service Income Fines andPenalties–Service Other ServiceIncome Rent Income–Buildings, Business Income Sale ofPower Printing andPublicationIncome Reefer Services Net IncomefromSTUs Sale ofWater Parking Fees Fines andPenalties-Business Rent Income-Operations/ Truck Scale Income fromDormitoryOperations Other BusinessIncome Others Premium Contributions Allowance & Licenses Terminal Fees Income Warehouses &Guesthouses Income Equipment Rental ofCrane/CargoHandling 608,727,294 119,037 1,442,563,971 217,828,370 100,281,191 530,170,958 316,433,719 101,544,881 136,245,244 361,439,002 240,411,649 51,108,994 51,190,081 85,837,349 73,287,551 11,777,854 15,648,314 51,122,138 53,124,104 66,657,379 19,482,472 90,365,978 25,024,436 11,466,322 10,846,313 33,275,381 7,407,444 1,734,360 5,272,176 3,193,879 2,558,525 6,797,394 6,410,017 8,680,612 1,300,347 7,560,508 3,618,395 9,702,665 5,926,617 4,925,618 1,856,209 - 834,124 197,784 732,918 378,276 31,650 - 2011 - - 1,313,540,451 170,032,685 505,298,380 284,331,818 558,916,343 161,673,052 406,414,307 292,137,719 21,726,814 52,837,471 81,663,223 79,293,043 66,908,410 11,656,917 13,952,182 14,810,861 51,944,887 52,307,640 60,339,146 15,962,030 97,200,898 98,314,558 16,947,645 16,366,271 24,036,388 16,240,711 16,541,474 27,449,501 5,963,408 1,805,303 5,116,013 3,279,759 2,714,230 6,390,644 4,877,916 9,018,594 1,113,660 3,462,502 3,326,558 2,289,698 1,073,569 2,110,367 920,453 126,018 196,498 938,000 797,903 961,523 619,983 2010 -

39. ear ad aneac cnit o epne i bign t normal to bringing condition thefollowingassets: in expenses of consists Maintenance and Repairs wholly-owned and Assignee Corporation, Marine corporation oftheAssignor. FF Dredging PPA to the in Contract, interest and of rights Deed its a 2010, transferring Assignment, October 09 on executed has Assignor, the as FFCCI, contract, supplemental the of 3 Clause to Pursuant contract. original the 04 under term unexpired any waived FFCCI whereby years (10) ten another on parties both by signed for period contract dredging the of term the extending 2009 September was contract supplemental second A Contractor. the by applied be to work dredging of type the and dredged be to locality the on based meter cubic per rates contract dredging the of 2008, February 01 effective adjustment, upward the for mainly 2008 October 28 on FFCCI and PPA by executed was contract supplemental A annual guaranteed and meter cubic minimum dredgingvolumeoftwo(2)millioncubicmeters. per rate contract the on based year per dredged volume actual the of cost the FFCCI pay will Authority the period, contract the country’s Within the System. Port PPA of the in included dredging ports maintenance the vessels undertake shall dredge and (6) A-II) six the maintain and (PHILPORTSA-I boats supply (2) two the and D-VI) to D-I (PHILPORTS and operate rehabilitate, shall FFCCI that stipulated the Contract The (FFCCI). Inc. Co. & under Cruz F. F. and PPA Fleet Dredging PPA the Rehabilitate and Maintenance Scheme was entered into by and between of Maintenance and Operation On 06 November 2001, original contract for a ten (10) year Rehabilitation, other and expenses related costs. traveling incidental employees, contractual and casual of wages and salaries parts, spare equipment, dredging of repairs minor of cost channels, navigational and basins of maintenance the in expenses includes also It silts. of removal through depth required the to harbors the dredging in incurred cost represents Expense Dredging This accountconsistsof: MAINTENANCE ANDOTHEROPERATINGEXPENSES Bad DebtsExpense Final Tax Loss onAssets Depreciation Expense Non-Cash Expenses Miscellaneous Expenses General Services Organizations Membership Dues&Cont.to Subscription Expense Subsidies andDonations Rewards andOtherClaims Advertising Expense Rent Expense Intelligence Expense Training andScholarshipExpense Representation Expense Traveling Expense Communications Expense Janitorial Services Printing andBindingExpense Supplies andMaterialsExpense Auditing Services Consultancy Services Taxes, InsuranceandOtherFees Utility Expenses Other ProfessionalServices Security Services Motor Vehicles/Other Transport Awards andIndemnities Buildings andStructures Dredging Expense Furniture, Fixtures&Equipment Repairs andMaintenance Maintenance &OtherOperating Land Improvements Equipment Expenses 4,208,764,548 1,963,992,726 1,840,284,843 2,244,771,822 141,839,735 183,424,121 217,384,644 237,058,813 391,220,449 617,192,389 617,192,389 557,058,969 24,597,798 27,509,367 71,600,718 14,010,250 16,226,495 39,362,979 25,971,671 40,016,087 41,755,627 53,483,080 62,229,154 62,826,138 74,599,345 10,584,696 14,085,645 35,463,079 4,920,377 1,409,937 2,720,064 7,602,221 8,000,000 302,160 583,561 632,525 2011 - 2011 3,988,847,768 1,624,512,040 1,557,874,705 2,364,335,728 760,731,614 704,213,455 151,530,706 126,308,269 214,658,692 110,835,520 606,242,583 760,731,614 20,296,694 26,264,143 32,070,426 34,532,864 20,624,843 11,323,727 24,716,710 27,818,682 37,313,693 49,425,300 50,959,115 51,057,580 16,998,669 70,725,240 9,957,322 8,500,240 1,607,146 1,089,769 8,163,110 8,000,000 3,904,554 473,833 754,304 571,829 34,045 2010 2010

55 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY - - 358,429 545,002 3,169,567 17,615,703 51,346,772 431,930,297 BIR UNDER by BIR UNDER required Processing Goods Other Than for Resale or Manufacture Beginning of Year Capital Goods Subject to Amortization Capital Goods Not Subject to Amortization Services Lodged Under Cost of Goods Sold Services Lodged Under Other Assets Excess Input VAT carried over Current Year’s Domestic Purchases/Payments Goods for Resale/Manufacture or Further VAT Output Tax PPA is a VAT registered company with Vat Output Tax declaration of P839,455,966 for the year based on the amount reflected in the Sales Account of P6,996,920,054. The Authority has zero-rated sales of P1,374,680,873 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. VAT Input Tax The amount of VAT Input Tax claimed is broken down as follows: RR No. 15-2010 On 25 November 2010, No. 15-2010 the prescribing BIR additional issued requirements procedural in Revenue and/or connection with Regulations documentary the preparation (RR) Financial Statements and accompanying submission the of Tax Returns. RR, Under it is required that, in addition to the disclosures mandated under the the said and/ standards other such and Standards, Reporting Financial Philippine or conventions as may be adopted, the Notes shall include information year. taxable the during accrued or paid fees license and duties taxes, on In compliance with the the during accrued or paid fees licenses and duties taxes, on requirements information set forth by RR taxable year are as follows: 15-2010, the 1. Other Financial Charges include payments fees to on the the PPA BTr Corporate for Notes Manager guarantee Fund as guaranteed expenses other and fees management and Philippines by the Republic of the Notes Sinking Fund. of the Corporate 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) withdrawal of amount the of equivalent peso the between difference the from dollar bank deposits at value using the adopted booking rate. withdrawal as against its carrying actual rates prevailing at the time of INCOME TAX The Statement of Comprehensive Income for 2011 reflects a Net Profit After Tax amounting to P1,121.58 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 capital or assets fixed in investments deducting after Income Gross of 2% already PPA 2011, of quarter third the of As year. the during expenditures expense tax current The tax. income for million P313 BIR the to remitted for the year is reported at P770.14 million which will be settled using the P355.49 million deferred tax asset and the remaining P414.65 million set up as tax liability for the year. CONTINGENT ACCOUNTS In compliance with the provisions of PAS 37 Liabilities - Provisions, and Contingent Contingent Assets, account Contingent Assets Contingent and Surplus its presented contra were in excluded the Statement among the outcome of the of Financial events, accounts income Position. contingent assets amounts or to P1,090.25 million and P1,022.38 million in surplus that Depending may on be 2011 realized and 2010, respectively. on The account consists mainly of contested lease on rates increased from income expected with receivable accounts 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 rate on lease serves adjusted as the basis of computation of charge in the invoice issued to the lessee. Supplementary Information

44. 45. 46. 2010 2010 2010 - 2010 0.5374 59,350 43.8850 58.0335 597,849 290,291 5,653,025 6,511,933 93,262,599 10,701,963 16,952,837 (2,252,088) 391,336,219 491,460,392 (531,121,908) (533,373,996) 2011 2011 3,761 2011 2011 - 0.5638 40,176 43.9280 56.8428 140,180 6,238,242 2,500,000 19,485,019 25,727,022 91,299,504 19,041,186 431,799,420 544,780,290 (407,635,380) (407,595,204) Borrowings Balance of Foreign Outstanding Balances of Foreign Loans on Revaluation Interest Income Interest Expense – Loans/ Other Financial Charges Loss(Gain) on Foreign Exchange Currency Currency Deposit Accounts Gain(Loss) on Revaluation of Gain(Loss) on Revaluation of Insurance Income Documentary Stamp Expenses United States Dollar ($) Net Foreign Exchange Gain(Loss) Dividend Income Bank Charges Japanese Yen (Y) Miscellaneous Income European Euro (€) Awards Awards and Indemnities property/ pertain of destruction the by affected persons to bodies to administrative amounts awarded by courts death/injury, as or well as the monetary service/loyalty officials and awards employees for attaining several given yearsof service to the to PPA. It also includes the corporate Christmas package given to all officers and Order No. 45-2011. to PPA Memorandum employees pursuant Utility Expenses cover the illumination consumed costs at of office water, structures. buildings, electricity, grounds and and other gas port for Taxes, Insurance and Other Fees represent taxes, the duties, licenses, amounts vehicle registration fees, incurred fidelity bond for premiums of accountable officers,and insurance premiums for motorvehicle and other property. Intelligence Expense pertains to expenses incurred for highly sensitive activities. Liquidation documents are submitted to the Commission on Audit Central Office for audit. Final Tax pertains to the tax deducted on the interest income earned on investments in securities. FUND MANAGEMENT INCOME This account covers investments in T-bills, bonds and other marketable securities. interest earned from various deposits and OTHER GENERAL INCOME This account consists of: The following are the peso equivalent outstanding the per determining in Bangko used were Sentral that exchange ng of rates Pilipinas guiding balances of foreign loans and dollar deposits as of reporting date: FOREIGN EXCHANGE GAIN (LOSS) ON REVALUATION In accordance with Philippine Accounting Standards (PAS) 21, balances of foreign currency-denominated dollar accounts deposits) are revalued at year-end to reflect their (i.e., actual values at foreign reporting loans date. The and difference is recognized in profit or loss.effect The of net gains and losses as a resultduring the year compared to last year follows: of foreign exchange fluctuations FINANCIAL EXPENSES This account is composed of financial charges as follows: 40. 41.

42. 43.

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 55 6 6 47. Amelia • Manila • United • 3. 2. PPA • still lawsuits Among theselawsuitsarethefollowing: several in litigant position. financial its party affect materially could that a resolution for pending as involved is Authority The PENDING LAWSUITS PPAhasnofinalassessmentnoticefromanyBIRRegionalOffice. Final AssessmentNotice 4. million. Thecaseisstillpendingbeforethe RTC. P98 around be to estimated is which operations their of start the since collected fees all of return the for demands UHPAP income. gross their on share government 10% a impose to authority PPA’s the questioning UHPAP the by filed was case This – al et PPA vs. financial statement. 2011 in up set was million P255 of amount The 2012. in made be will Payment taxes. deductible and owners lot to made payments initial less paid fully until 2001 September 11 on lots the to entry PPA’s of date the from annum per interest 12% pay to directive a declaring the just compensation at P425 per square meter and with resolution a issued Court Supreme the 2009, June 22 On II. Phase Project Development Port Batangas the covering expropriation filed bythePPAbeforeSupremeCourt. latter to pay P700 million to MIPTI. Hence, a Petition for Review was the ordered and PPA against ruled (RTC) Court Trial Regional The the over taking (MICT). Terminal Container after International Manila the PPA of operations against case a is This – 96-37673 No. aaes n ae ie ter AA ae o GA ae are rates GAA on based RATA Division/Department their to given promoted are and were Managers who them of Those returned. be should them by refunded amount the and RATA to entitled are they that claiming court the before case a filed COA by disallowed were allowances transportation and representation Other TaxesandLicenses of DSTforthesaidyear. no availment in CY 2010, hence, there was no payment nor accrual was There 2011. CY in second withdrawal for The programmed was tranche 2009. in oftheP1.0 released was Loan, half Term Domestic representing billion million, of P500 tranche first The Documentary StampTax(DST) Withholding Taxes Creditable WithholdingTaxes Tax onCompensationandBenefits PNRI (X-rayMachineRegistrationFee) Bureau ofFireProtection BOT (FidelityBond) BIR RegistrationFee NTC (RadiosLicences) LTO (VehicleRegistration) National Other TaxesandLicenses Business Tax/Mayor’sPermit/Other Community Tax Local Balance atEndofYear Less ClaimsforTaxCreditandOther Total Final WithholdingTaxes Adjustments vs. International Aquino Harbor Acosta, vs. Pilots’ et PPA al Port Civil – Association A Terminal number Case No. of Inc. of Section 5447 (MIPTI) the Philippines – Heads/Chief This vs. PPA is (500,348,660) 504,965,770 431,196,612 188,685,724 161,894,813 80,616,075 a 24,397,072 29,029,526 Civil 4,617,110 3,734,946 (UHPAP) case 713,008 whose 20,683 69,000 71,842 10,500 2,478 9,997 Case for PPA • Province • United • AT • • Shipside • Arnel • • Antonio • COLA • Benny • Banago • was affirmed by the Court of Appeals but is now pending before the Supreme Courtforfinal adjudication. before pending now is but Appeals of Court the by affirmed was pay decision The to suit. of RTC costs the and the million P36.59 by of amount the ordered PPA was (Minterbro) defendant The PPA. of favor in 1990 August 28 on decision its rendered has court honorable the case, the of the merits the on trial After Manila. before of Court Trial Regional lodged of was Office (OGCC), the Counsel by Corporate represented Government duly the and money, of sum of collection for 1987 November 12 on PPA by filed 87-42747 No. Case Civil This – is nowclaimingdamagesintheamountofP700,000againstPPA. Inc. Gas, Fortune Cebu fees. storage unpaid to due cargoes the holding is PPA Investigation. of Bureau National and Guard Coast Philippine by confiscated were corporation said of Cargoes Damages. with Replevin determined bytheCourt.ThecaseisstillpendingwithRTC. be to amount the with damages for suing is UDPDC Iloilo. , filed of Port was the of case operator handling cargo This the over – taking for PPA al against et Ana Sta C. Juan vs. Divinagracia Wilhelm shift differentialetc.ThisisstillpendingwiththeNLRC. night and ECOLA of non-payment salaries/wages, of underpayment of claim a is 1014201-08 No. Case NCR NLRC This – al et etc., Stevedoring Wharf Port Services. The case is still pending River with the Court of Appeals. Iloilo of operation the over took of PPA underpayment sharing. profit for and wages claim involves VI-05-50142-06 No. Case SRAB to bedeterminedbytheCourt. and Lepanto Both latter. Shipside are the now claiming rental fees for the land usage. by Amount is still owned not land on structures and buildings constructed PPA that claim Petitioners PPA. against detainer unlawful for Union La Fernando, San of RTC the before filed was cases property taxofthePPAleasedproperty. real the to corresponding P600,000 of amount the pay will PPA likely, Most 2012. March 06 on reset was conference Pre-trial PPA. against taxes property real collect to Norte del Agusan of Province the by filed favorable to PPA. The agency filed a petition for certiorari, while for certiorari, case isstillpendingwiththeSupremeCourt. a petition filed This petition. the to comments agency its filed union) (employees’ PANTALAN The PPA. not were to decisions favorable RTC COLA Both of employees. payment former continuous and incumbent and to pay back COLA of payment the fully paid.ThisisstillpendingwiththeRTC. be counted from 03 December 2002 with 12% interest per annum until Iloilo – This case is a demand for damages worth P300,000 per month to PMO of Manager Port Santillan, Christian and PPA vs. Services General was approvedbytheRTCon14November2011. which of Appeal aNotice filed General Solicitor the of Office The PPA. against decision unfavorable issued Batangas of Court Trial Regional implementation of the Batangas Port Development Project Phase I. The the with affected was which Diaz Mr. by owned asserted property the t piae ot n uuadn Te opn i camn ta it that claiming Appeals. Itisunlikelythatthiswillbesettledwithintheyear. is company of The Court the with pending still is case The million. P3 by PPA Pulupandan. overpaid in port private a at Supreme Court. salary basic the before pending still is case This of Law. Standardization Salary before 40% receiving already were to who similar managers RATA other and the salary basic of 40% given be they that claiming cases, the damages being asked is P8 million each or a total of P16 of total a or million. each million P8 is asked being damages the cases, both In evidence. of presentation for RTC the with pending still is case The relocation. to entitled therefore and Barangay a of constituents be to claiming settlers squatters/informal by PPA against filed TRO the of Issuance the for Prayer with Injunction Preliminary for Application and Prohibition for are cases two These – al et MMDA, and al et PPA vs. etc. IBA vs. Dilay Fortune Cases PA, Espinosa, Port Mindanao Dumangas Altas, vs. of 650, Rank Diaz Agusan PPA/Lepanto Stevedoring – et Zone Gas These and al vs. in vs. Terminal Inc. File del 68, PPA Port his are Iloilo vs. Norte SA etc. capacity vs. – Consolidated the Development Sulpicio PPA This River PPA and vs. vs. two PPA – case – Wharf PPA Brokerage as This The cases Lines, et involves Owner/General – stevedoring Mining Civil al Port This filed Inc., and Corporation Services, Case Services, Civil etc., Barangay claims Co. by No. PPA Case vs. et company al. et PPA for Manager Inc. 2011-249 employees vs. (UDPDC) No. al 651, damages – – (Minterbro) PPA/Tondo These This 4303 Zone operates of NLRC is two was and 68, for for on VS

57 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY GREGORY L. DOMINGO Secretary Department of and Industry Trade Atty. JUAN C. STA. ANA C. STA. JUAN Atty. Philippine Ports Authority Ports Philippine Vice-Chairman / General Manager Vice-Chairman / General , II as x

o Secretary A. R

CESAR V. PURISIMA PURISIMA V. CESAR anuel

Members Board of Board Directors M Chairman / Secretary Transportation Department of and Communications Department of Finance

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

5 8 5 8 Members and Natural Resources ofEnvironmentDepartment Secretary RAMON J.P. RAMON PAJE Private Representative Sector APOLLO S.ENRIQUEZ Maritime Industry Authority Industry Maritime Administrator EMERSON M.LORENZO Philippine Ports Authority Corporate Board Secretary Atty. ELSAL. HILARIO Public Works andHighways of Department Secretary ROGELIO L.SINGSON Development Authority National Economic and Director-General CAYETANO W. PADERANGA, Jr.

9 5 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Standing: C. Sta. Ana Juan Atty. Manager – General Seated left right: to David R. Simon – Asst. Atty. Manager for Finance, General Engr. & Administration; Legal – Asst. General Carlos B. Tomas Manager for Engineering; and Santos – Asst. General T. Raul Manager for Operations Office Manager of the General

Seated: Services Dept. – General Manager – General Atty. Juan C. Sta. Ana Juan Atty. Standing (left right): to Department Managers Management & Information – Corporate Elsa L. Hilario – Corporate Atty. – Head Executive Assistant; and – Head Executive – Manager, – Manager, Elizabeth C. Follosco Board Secretary;Board Amelia M. Aquino Control Dept.; M. del Rosario Editha Control – Manager, Strategic Planning Dept.; Planning Strategic – Manager, – Manager, Internal Internal Rosalia G. Banson – Manager, Officers Executive

PHILIPPINE PORTS AUTHORITY ANNUAL REPORT 2011

66 0 0 6 0 Executive Officers Department Managers Dept. (notinphoto) Dept. – Manager, Project Development andRomeloT.Dept; Mascariña Facilities Construction &Maintenance Carlito M.Castillo –Manager, Maintenance Harbor Dept.; PerezRolando K. –Manager, to right): (left Standing Engineering Office General– Asst. Managerfor Manager andEngr. Tomas B. Carlos Atty. –General Juan C.Sta.Ana (rightto left): Seated Finance, Legal & Administration Office Operations Office Engineering Office Manager, Dept. Operations &Services Port C.Aquino – andRoberto Dept.; Services Emma L.Susara –Manager, Commercial - Manager–PPA Training Center; PolicePort MadeleineC.Abada Dept.; V.Jesus Tolosa –Manager, to right): (left Standing General Managerfor Operations Raul T.Manager; –Asst. Santos Atty. –General Juan C.Sta.Ana to right): (left Seated Treasury Dept. and Virginia –Manager, G.Quina – Manager, Controllership Dept.; Virginia Dept.; S.ValeroServices Jr., Manager–Administrative C.Ignacio, ;Antonio Dept. Services LosDe Santos Hiyasmin Ma.Asuncion Dept.; H. Human Resources Management Lilian T. Javier–Manager, to right): (left Standing Finance, Legal &Administration General– Asst. Managerfor Atty.Manager; R.Simon David Atty. –General Juan C.Sta.Ana to right): (left Seated , Manager–Legal †

1 6 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY . r , J V. V. sidro Engr. MANUEL MANUEL Engr. A. BOHOLANO Port Manager Tagbilaran PMO in PPA 23 years I utaslac B Mr. Mr. Port Manager Surigao PMO in PPA 20 years Mr. LEONILO LEONILO Mr. MIOLE E. Port Manager Zamboanga PMO in PPA 34 years Engr. DOMINADOR Engr. LICAYAN D. Port Manager Tacloban PMO in PPA 34 years Mr. EFREN Mr. A. QUIÑONES Port Manager Ozamis PMO in PPA 34 years Engr. LIBERTO LIBERTO Engr. C. DELA ROSA Port Manager General Santos PMO in PPA 32 years Engr. ENRIQUE Engr. H. FUENTEBAJA Port Manager Pulupandan PMO in PPA 33 years VISAYAS Mr. RENATO RENATO Mr. TOLINERO T. Port Manager Nasipit PMO in PPA 35 years SOUTHERN MINDANAO NORTHERN MINDANAO Mr. JOSE CESARIO Mr. BAUTISTA O. Port Manager Ormoc PMO in PPA 35 years Atty. ROGER Atty. ASPRER B. Port Manager Dapitan PMO in PPA 33 years PORT DISTRICT OF Engr. NOEME Engr. CALDERON W. Port Manager Iligan PMO in PPA 34 years Mr. WINFRED Mr. G. ELIZALDE Port Manager Iloilo PMO in PPA 35 years PORT DISTRICT OF PORT DISTRICT OF Ms. EVANGELINE EVANGELINE Ms. CRISTOBAL J. Port Manager Cotabato PMO in PPA 35 years

anese nnie A F. M F.

Engr. NECITAS NECITAS Engr. Jr. G. LAYOLA, Port Manager de Oro Cagayan PMO in PPA 34 years ee L Ms. Ms. Port Manager Dumaguete PMO in PPA 32 years

Atty. CHRISTIAN Atty. SANTILLAN V. Port District Manager, PDO Southern Mindanao and concurrent Davao PMO Manager, in PPA 34 years

Managers Port District/Port Management Offices Management District/Port Port Atty. EDGAR C. PILAR Atty. Port District Manager in PPA 34 years Atty. FERNANDO Atty. CLAVERIA B. Port District Manager Visayas PDO in PPA 34 years

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 66 2 2 General Manager C. STA. ANA Atty. JUAN Executive Offices Department Managers 31 years inPPA Luzon Northern PDO Manila/ Manager District Port T. FARIÑAS, Jr. Engr. CONSTANTE 34 years inPPA LuzonPDO Southern Manager District Port Mr. E. HECTOR MIOLE 34 years inPPA Dept. Services & Information Management Manager, C. FOLLOSCO Engr. ELIZABETH PORT DISTRICT OF OF DISTRICT PORT 35 years inPPA Harbor PMO North Manager Port S. IGNACIO Ms. CLARISSA 31 years inPPA PMO Batangas Manager Port BISCOCHO, Jr. Atty. LEOPOLDO PORT DISTRICT OF OF DISTRICT PORT OFFICE OF THE THE OF OFFICE 34 years inPPA Planning Dept. Manager, Strategic M. AQUINO Ms. AMELIA 20 years inPPA PMO Harbor South Manager Port O. MANCILE Atty. FRANCISQUIEL 34 years inPPA PMO Calapan Manager Port Mr. V A. A A. MANILA/NORTHERN LUZON MANILA/NORTHERN rellano GENERAL MANAGER GENERAL ictor SOUTHERN LUZON SOUTHERN

34 years inPPA Control Dept. Manager, Internal G. BANSON Ms. ROSALIA 35 years inPPA PMO Limay Manager Port P. TUGUIGUI Mr. GERMAN 34 years inPPA PMO Legaspi Manager Port Ms. G. S G. umagaysay R osenda

2 years inPPA Assistant Head Executive D M el s. E R ditha osario M. M. 35 years inPPA PMO Fernando San Manager Port MANGAOANG, JR. Mr. SILVERIO D. 34 years inPPA Princesa PMO Puerto Manager Port Ms. C. H C. A er delaida N andez 34 years inPPA Board Secretary Corporate Atty. L. H L.

ilario E lsa

3 6 ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY Atty. MA. ASUNCION MA. Atty. H. HIYASMIN SANTOS DE LOS Manager, Legal Services Dept. in PPA 7 years

esus J olosa V. T V. Mr. Mr. Manager, Police Port Department in PPA 34 years † Engr. ROMELO ROMELO Engr. MASCARIÑA T. Manager, Project Dept. Development in PPA 34 years Ms. VIRGINIA Ms. G. QUINA Manager, Dept. Treasury in PPA 34 years OFFICE , PPA Manager, PPA Center Training in PPA 37 years Ms. MADELEINE MADELEINE Ms. Ph.D. C. ABADA, Engr. ROLANDO Engr. K. PEREZ Manager, Harbor Dept. Maintenance in PPA 24 years OFFICE OFFICE Ms. LILIAN T. JAVIER T. LILIAN Ms. Manager, Human Resource Management Dept. in PPA 4 years Mr. ROBERTO ROBERTO Mr. C. AQUINO Manager, Operations Port & Services Dept. in PPA 34 years OPERATIONS ENGINEERING Engr. CARLITO CARLITO Engr. M. CASTILLO Manager, Facilities Construction & Dept. Maintenance in PPA 25 years Ms. VIRGINIA Ms. VALERO S. Manager, Dept. Controllership in PPA 34 years Ms. EMMA EMMA Ms. L. SUSARA Manager, Commercial Services Dept. in PPA 33 years .

r , J FINANCE, LEGAL AND ADMINISTRATION ntonio A gnacio Engr. TOMAS TOMAS Engr. CARLOS B. Asst. General Manager for Engineering in PPA 34 years C. I Manager, Administrative Services Dept. in PPA 34 years Mr. Mr. Mr. RAUL T. SANTOS T. RAUL Mr. Asst. General Manager for Operations in PPA 37 years Atty. DAVID DAVID Atty. R. SIMON Manager, Asst. General Legal Finance, for and Administration in PPA 35 years

ANNUAL REPORT 2011 PHILIPPINE PORTS AUTHORITY 6 4 Email: [email protected] Fax No.: (0632)301-9679 Telephone No.: (0632)301-9577 Harbor,South Port Area, 1018 Manila MARSMAN Building, Francisco de San Muelle St., Luzon ofSouthern Office Port District Email: [email protected] Fax No.: (0632)301-9042 Telephone No.: (0632)525-5264 Port Area 1018 Manila PNR Building, Harbor, South Luzon ofManila/Northern Office Port District Webpage: www.ppa.com.ph Fax No:(0632)527-4855 Telephone No.: (0632)527-8356to 83 Port Area, 1018 Manila Drive,Bonifacio Harbor, South Head Office Tel. Nos.: 527-4755& 301-0545 |Email:[email protected] andEvaluationMonitoring Division,Strategic Planning Department Prepared by: Address Business [email protected] Email: [email protected] Fax No.: (082)234-0079 Telephone No.: (082)233-2080to 82 10,Port Area,Km Davao Sasa, 8000 City Mindanao ofSouthern Office Port District [email protected] Email: [email protected] Fax No.: (088)856-2820 Telephone No.: (088)856-2819 Port Area, Agora Gate, Cagayan deOro 9000 City Mindanao ofNorthern Office Port District Email: [email protected] Fax No.: (032)232-1990 Telephone No.: (032)232-3401to 04 CIP Complex, Cebu 6000 City of Office Port District Visayas Concept, Design, Photography and Printing: Mode Matrix Manila, Inc. Printing: Manila, Matrix Mode

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