Question & AnswerQ&A (PPA ADMINISTRATIVE ORDER NO. 04-2007)
The main purpose of PPA Administrative Order No. 04-2007 is to prescribe additional performance bond amounts for Cargo Handling Operators (CHOs) with annual gross revenues of more than PHP300 million.
The Performance Bond table applies to Cargo Handling Operators with annual gross revenues exceeding PHP300 million.
The required Performance Bond amount for cargo handling operators with annual gross revenues between PHP375,000,001 and PHP400,000,000 is PHP8,000,000.
The required Performance Bond for Cargo Handling Operators with gross revenues between PHP525,000,001 and PHP550,000,000 is PHP11,000,000.
For Cargo Handling Operators with gross revenues above PHP800 million, the required Performance Bond is a uniform rate of PHP20 million.
No, PPA Board approval is not required to secure the Performance Bond for Cargo Handling Operators with gross revenues exceeding PHP800 million.
Cargo Handling Operators must secure their Performance Bond from GSIS (Government Service Insurance System).
The Order takes effect fifteen (15) days after its publication in a newspaper of general circulation.
PPA Administrative Order No. 04-2007 amends Annex aBa of PPA Administrative Order No. 13-96 dated 12 September 1996, which covers the Performance Standards and Rating System for Cargo Handling Contractors.
The Order was signed and adopted by Atty. Oscar M. Sevilla, who was the General Manager of the Philippine Ports Authority at the time.