The Manila North Harbour Port, Inc. (MNHPI) has advanced P42 million to the Philippine Ports Authority (PPA) as payment for the Fixed Fee.

In a statement, MNHPI said the Fixed Fee payment is part of the obligation of MNHPI for the first quarter this year pursuant to Section 3.01, Article III of the Contract for the Development, Management, Operation and Maintenance of the Manila North Harbor dated November 19, 2009.

The first-year Fixed Fee is P168 million and escalates yearly for 25 years. This is the P6.8-billion fixed fee that the government will earn from MNHPI.

MNHPI said its commitment to modernize North Harbor into a world-class facility is now in full swing after the PPA turned over its operation last April 12. The turn-over of port operations to MNHPI came after the Supreme Court and the Manila Regional Trial affirmed the legality of the modernization project in separate decisions.

“Te legality of the Manila North Harbor Modernization Project has been confirmed and affirmed by the Supreme Court in the three (3) separate petitions filed before it, viz- (i) Nelson P. Ramirez vs. Philippine Ports Authority et al., G.R. No. 186508; (ii) Danilo B. Calipay et al. vs. Philippine Ports Authority et al., G.R. No. 190399; and (iii) Samahan ng mga Mangagagawa sa Pantalan- NFWU [SMP-NFWU], et al. vs. Atty. Oscar M. Sevilla et al., G.R. No. 190656,” MNHPI said.

While not obligated by law, Terms of the Reference (TOR) and the Contract, MNHPI nonetheless agreed to advance the payment of past service benefits amounting to approx. P100 million for the benefit of the absorbed employees.

The inventory team composed of representatives of the PPA and the Commission on Audit has confirmed MNHPI’s compliance to the minimum cargo handling equipment. MNHPI has so far delivered 159 units of medium and heavy equipment.