Title
Albano vs. Reyes
Case
G.R. No. 83551
Decision Date
Jul 11, 1989
A legislator challenged the PPA's award of the Manila International Container Terminal contract to ICTSI, arguing it required a legislative franchise. The Supreme Court ruled the PPA had authority under its charter, dismissing the petition.

Case Digest (G.R. No. 83551)

Facts:

Rodolfo B. Albano v. Hon. Rainerio O. Reyes, Philippine Ports Authority, International Container Terminal Services, Inc., E. Razon, Inc., Anscor Container Corporation, and Sealand Services Ltd., G.R. No. 83551, July 11, 1989, the Supreme Court En Banc, Paras, J., writing for the Court.

On April 20, 1987 the Philippine Ports Authority (PPA) Board adopted Resolution No. 850 directing PPA management to prepare the Invitation to Bid and related bidding documents for the public bidding of the development, management and operation of the Manila International Container Terminal (MICT), and authorized Board Chairman Secretary Rainerio O. Reyes to oversee preparation and implementation. By DOTC Special Order 87-346, Secretary Reyes created a seven-member Special MICT Bidding Committee (three PPA, two DOTC, one DTI, one private sector) to evaluate bids and recommend the best proposal; PPA management prepared the terms of reference, bid documents and draft contract approved by the Board.

The PPA published the Invitation to Bid several times; seven consortia submitted proposals which were opened July 17, 1987. After evaluation, the Bidding Committee recommended International Container Terminal Services, Inc. (ICTSI) as the winning bidder and Secretary Reyes declared ICTSI the winner. Before the contract could be signed two suits attacked the bidding: Special Civil Action No. 55489 (RTC Pasig) filed by Basilio H. Alo and Civil Case 88-43616 (RTC Manila) filed by C.F. Sharp Co., Inc. Temporary restraining orders issued in the latter case were later lifted by this Court in Resolutions dated March 17, 1988 (G.R. No. 82218) and April 14, 1988 (G.R. No. 81947).

On May 18, 1988 the President approved the proposed MICT contract with written directives concerning retention by the PPA of planning, engineering, construction and revenue allocation responsibilities and specifying payment procedures; on May 19, 1988 the PPA and ICTSI perfected the contract, incorporating clarificatory guidelines reflecting the presidential directives. Petitioner Rodolfo A. Albano, suing as a citizen, taxpayer and Member of the House of Representatives, filed the present Petition for Prohibition with prayer for Preliminary Injunction or Restraining Order, seeking t...(Pro-only)

Issues:

  • Does petitioner have standing to challenge the award and proposed contract as a citizen, taxpayer and Member of the House of Representatives?
  • May the PPA legally award and contract out the development, management and operation of the MICT to a private entity without a franchise granted by Congress?
  • Did the President’s conditions of approval materially alter the substance of the contract such that the bidding/procurement procedure was rendered ineffectual?
  • Did the PPA commit grave abuse of discretion in awarding the contract or in evaluating the bidders...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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