Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 505)
The title of Presidential Decree No. 505 is the Philippine Port Authority Decree of 1974.
The State declares a policy to implement an integrated program of port development for the entire country streamlining planning, development, operation of ports to ensure smooth commerce flow, promote regional development, foster free enterprise and expand port functions beyond traditional duties.
The PPA supervises, regulates, and exercises powers over persons and entities in port districts; prepares and annually updates a Ten-Year Philippine Port Development Program; assists creation of autonomous Port/Industrial Zone Authorities; exercises eminent domain for port development; and enforces port regulations.
The Council is composed of eleven members including the Secretaries of Finance, Trade, Industry, Public Works, Transportation and Communications, Public Highways, National Defense, the Executive Secretary, the Director General of NEDA, the PPA General Manager, and a private sector representative designated by the President.
The Council provides policy guidance, formulates port development programs, issues regulations for Port/Industrial Zone Authorities, approves port operations, exercises eminent domain, appoints PPA officials, supervises port safety and pollution standards, and coordinates with other government agencies.
They are appointed by the President for six-year terms. They must be Filipino citizens, at least 35 years old, of good moral character, with proven executive ability and competence, with adequate experience in economics, finance, law, management, technology, public utilities, or port administration.
They exercise full autonomy and flexibility like business enterprises, can manage utilities, housing, commercial enterprises, and can expand functions depending on viability, subject to assistance and supervision by the PPA.
The PPA promotes foreign investments in Port/Industrial Zone Authorities by granting incentives and allowing foreign participation subject to Philippine citizenship and ownership laws.
The total principal domestic indebtedness payable in Philippine currency shall not exceed 300 million pesos at any time; foreign currency indebtedness shall not exceed 100 million U.S. dollars or equivalent.
An inter-agency committee is created to recommend reorganization and turnover of port administration responsibilities to the PPA, including delineation of powers and procedures for turnover with agencies like the Bureau of Customs and Public Works.