Question & AnswerQ&A (PPA ADMINISTRATIVE ORDER NO. 05-2007)
The primary authority is Presidential Decree No. 857, as amended.
Management may be temporarily transferred in special or exceptional cases, subject to guidelines prescribed by the PPA and pursuant to a Memorandum of Agreement (MOA).
Ports under PPA administrative jurisdiction that cater only to domestic vessels and cargoes, not categorized as vital or priority ports or ports programmed for international development.
A GC is a government-owned or controlled corporation or unit created by the LGU tasked with economic development and whose operation of a port facility is necessary or incidental to its corporate goals.
The Supervision Fee is a payment from the LGU or GC to PPA equivalent to 10% of its collection from all domestic Wharfage, Storage, and Usage Fees.
The term is three (3) years.
Requirements include maintaining a minimum capitalization of Php250,000 to Php500,000, having necessary port equipment and skilled personnel, and management with at least three years relevant technical and management experience.
Grounds include failure to remit Supervision Fees, failure to maintain port facilities, unauthorized change of control, illegal activities like smuggling, non-availability of books of accounts, collecting unauthorized fees, and violation of related laws and MOA terms.
They may operate cargo handling and port-related services, collect domestic port charges and fees prescribed by the PPA, and undertake port-related economic activities within the port.
The LGU or GC submits a letter of intent; PMO and PDO recommend transfer; a Transition Committee is formed to assist LGU/GC; after assessment and training, MOA is drafted and upon approval, turnover is formalized.
No, only PPA-prescribed tariffs shall be charged, and LGUs/GCs must comply with DILG memorandum circular disallowing additional fees on inter-province goods and passenger transport.
The PPA may take over the management and operation of the port from the LGU or GC under specific situations such as emergency or violation of MOA terms.
PPA has visitorial powers and may conduct periodic performance audits, and LGUs or GCs must make available books of accounts and records for inspection and audit by PPA or Commission on Audit.
All personnel involved must undergo appropriate training with the PPA to ensure competent management and operation.
Republic Act No. 9285, the Alternative Dispute Resolution Act of 2004, prescribes arbitration as the mode of dispute resolution.