Question & AnswerQ&A (PPA ADMINISTRATIVE ORDER NO. 08-95)
The PPA adheres to the policy of encouraging private sector participation in the implementation of its infrastructure projects and port-related services.
When private sector implementation may best be undertaken with PPA participation or when public interest protection requires, or when joint venture with another government agency is more advantageous for port projects or services.
Joint venture agreements shall be limited to activities directly and immediately related to the objectives of the PPA as provided in PD 857, covering port infrastructure projects and port-related services.
Joint venture agreements shall be entered into only on projects or services not yet available in the port or, if available, are found to be highly needed by the shipping and port sector.
PPA must ensure its participation is amply protected by being represented in the management board commensurate to its assets in the joint venture.
Personnel willing to be devolved shall be accepted with a 25% increase in salary and allowances and a security of tenure for 5 years, after which they are considered resigned from government service.
PPA must advertise proposed joint ventures at least once in a newspaper of general circulation, and unsolicited proposals must also be advertised with a 60-day period for better offers.
Construction/operation of government piers, wharves, special cargo terminals, passenger terminals, warehouses, container yards, container freight stations, dredging, terminal operations, harbor vessel traffic management, and other authorized port-related projects.
Foreign co-venturers must be registered with the Board of Investments; must have successful experience or key personnel with relevant experience; have sufficient financial capacity; and the joint-venture company must comply with citizenship requirements.
The PPA equity can be up to a maximum of 49% of the total project cost.
Proposals must include a pre-feasibility study and are initially evaluated by Port District Managers, endorsed to the General Manager through the Chairman of the Joint Venture Committee, which then submits findings to the MEC and Board, and finally to the GCMCC.
The committee is chaired by the AGM for Operations, with members including managers from Commercial Services, Planning and Development, Legal Services, POSD, a DOTC/IIG representative, and the PDO/PMO Manager at the joint venture site. It evaluates joint venture proposals and recommends approval.
PPA does not intervene in day-to-day operations but participates in policy decision-making processes.
Apart from equity participation, PPA grants easement rights and areas for site development within its jurisdiction subject to the maximum equity ceiling.
All PPA circulars, memoranda, guidelines, and orders inconsistent with this Order are repealed or amended accordingly.