QuestionsQuestions (PPA ADMINISTRATIVE ORDER NO. 06-95)
It applies to all parties seeking clearance to develop, permit to construct, and/or operate a private port facility, and it also specifies the roles of PPA units in processing, evaluating, and approving the applications.
A private port constructed and owned by a private person/entity as an accessory/component of its own business, which does not offer port services to the general public; third-party use is only incidental and on a limited and non-commercial basis, usually for homogenous cargo handled by specialized/dedicated equipment.
A private commercial port’s principal business activity is offering port services to general port users; it is not merely a component of the owner’s other business activity.
“Port Zone” is an area proclaimed by the President for use as a port pursuant to PD 857. “Foreshore” is the part of land immediately in front of the shore between high and low watermarks, alternately covered and left dry by tides, not located in a port zone (indicated by the middle line between the highest and lowest tides).
It is a lease contract of a foreshore and offshore area for constructing and operating a private port, granted by DENR through the Land Management Bureau, for up to 25 years renewable for another up to 25 years, subject to existing laws and regulations.
It is given for 25 years but not to exceed the term of the foreshore lease contract; it may be renewable for another 25 years co-terminous with the renewed foreshore lease. If the foreshore lease is not renewed, cancelled, or expires, structures/port facilities on foreshore and other government-owned land become property of the Authority free from liens/encumbrances unless the foreshore area was authorized to be reclaimed and titled to the private port owner.
Discounted port and cargo handling dues privileges cease effective upon expiration unless renewed. There is an extension of up to 6 months if renewal application is made before expiration, to complete documentation.
At least one (1) concrete berth with minimum length of 65 meters and a draft of at least 5 meters at mean lower low water (mllw).
The investor files a formal letter of intent in triplicate with the Port Management Office concerned where the foreshore area is located, together with additional requirements in Annex 1.
Within two weeks from receipt of complete documents, it evaluates the proposal and indorses it for approval unless national security or safety is affected. It informs the applicant of PPA long-range plans, issues a certification that PMO interposes no objection for presentation to DENR for the foreshore lease contract, and elevates the proposal to PDO/HO with recommendation.
Within two weeks from receipt, it validates the initial findings/recommendations of the Port Manager reflecting its concurrence, then endorses the proposal to the AGM Operations (Attention: CSD), retaining a copy.
It processes within four weeks from receipt of complete documents. If prejudicial to national security/safety, it notifies applicant of denial; otherwise it prepares an executive brief and submits to AGM Operations for recommendation to the General Manager for final approval and clearance to issue a Permit to Construct. If it is a private commercial port, submission is to the PPA Board for approval.
Below P10M: P10,000.00. P10M & above: P10,000.00 plus .001 (1/10 of 1%) of the excess of 10 million, but not to exceed P100,000.00; plus 10% VAT.
They must be formally advised to register within 30 days. Failure to register after one month from final notice permanently disqualifies them from availing private port privileges such as discounted port and cargo handling dues, without prejudice to legal remedies.
Private commercial ports: P20,000 per annum; private non-commercial: P10,000 per annum; marina: P5,000 per annum; private river ports: P5,000 per annum. The privilege fee also extends to port owners/operators whose cargoes are loaded/unloaded at anchorage, provided cargoes come from or are destined to their registered private port facilities.
The sale, transfer, conveyance, or assignment of operating permits cannot be entered into by the private port owner/operator without first seeking prior written clearance from the Authority.
They are subject to penalty charges not less than P20,000 in addition to payment of the Permit to Construct fee.