THE Commonwealth Ports Authority intends to hire an independent financial consultant that will look into the agency’s fiscal situation amid continuing decline in projected revenue.
CPA Executive Director Carlos H. Salas said they need an independent expert’s opinion on how the agency can address its current financial difficulties.
From Oct. 2001 to May 2002, CPA registered an 11 percent decline in cargo volume and a 20 percent decrease in passenger flow compared to the same period last year.
“We need to hire an independent consultant to review CPA’s financial status, recommend steps to generate income, and look at other rates to pay our obligations,” Salas said.
However, he said his office would have to assess first if the CPA could afford hiring a new consultant.
“We’ll see which is more cost-effective,” he said.
CPA could also ask its current consultant, Rex Palacios, to check the authority’s finances.
Still, Salas said hiring an independent consultant would offer new ideas and strategies to address CPA’s financial concerns.
Among CPA’s obligations are the payment of $1.6 million every year for its $20 million airport bond, and $2.6 million a year for its $33 million seaport bond.
Both bonds were issued in 1998.
“With the decline in revenue, we should come up with alternative solutions to be able to generate income. This is where we need an independent consultant,” Salas said.
In recent meeting, the board instructed CPA’s management to write to the Commonwealth Development Authority and ask for a conversion of its $9 million loan into a grant.
This would help meet CPA’s bond obligations.
Once approved by CDA, CPA would get an estimated $800,000 annually.
