Creation and powers of Public Estates Authority

State policy mandates coordinated, economical, and efficient administration and reclamation of government lands, particularly reclaimed areas.
Aim to maximize utilization and expedite development consistent with public interest.

To reclaim lands (including foreshore and submerged) via dredging, filling, or other means, or acquire reclaimed lands.
To develop, administer, lease, sell, subdivide, and dispose of government-owned or controlled lands and real estate.
To provide and manage services necessary for efficient utilization of government properties.

Prescribe by-laws and adopt a corporate seal.
Sue and be sued in corporate name.
Acquire, lease, build, manage, mortgage, sell, or otherwise deal in buildings and real properties.
Construct and operate infrastructure including water systems, transportation (railroads, vessels), sanitary systems, storm drains, and public amenities.
Hold public domain lands exceeding limits allowed private corporations.
Exercise right-of-way on public and private lands for projects; indemnify private property owners for damages.
Issue regulations governing use of Authority's facilities; impose fees and tolls with proceeds used exclusively by the Authority.
Create subsidiary companies with capital subscribed wholly or partly by the Authority.
Contract obligations including loans, mortgages, and other securities.
Exercise eminent domain in acquiring real estate in the name of the Republic; hold title as agent of the Republic.
Enforce rules with penalties of fines up to P500, imprisonment up to 6 months, or both.
Perform all acts necessary to achieve its objectives.

The Authority governed by a Board of Directors: one Chairman and four members appointed by the President for a three-year term.
Vacancies on the Board filled by Presidential appointment.
Chief Executive is the General Manager, also appointed by the President for three years.
Qualification for Board Members and General Manager: natural-born Filipino citizen, at least 30 years old, and of established integrity.

Authorized capital stock of 3,000,000 shares with no par value.
2,000,000 shares subscribed by the Republic of the Philippines through transfer of rights and P5 million cash payment.
Remaining 1,000,000 shares may be subscribed by government financial institutions or the Republic at minimum fair value.
All government shares voting power vested in the President or his designee.

Authority may issue bonds or securities upon recommendations and Presidential approval to finance operations.
Commission on Audit appoints a representative to audit Authority's activities with Board approval.

Board appoints officials and employees upon General Manager’s recommendation.
Board determines compensation, benefits, working hours, leave, discipline, and removal.
Establishes recruitment and merit system.

Authority and affiliates (with at least 75% government ownership) may contract loans and indebtedness in foreign currency or capital goods with Presidential authorization.
Government financial institutions (excluding Central Bank, Government Service and Insurance System, Social Security System) may guarantee loans or obligations of the Authority.

Annual report to be submitted to the President within three months after fiscal year-end.
Periodic and other reports as required must also be submitted.

Five million pesos appropriated from the National Treasury as partial payment for subscription by the Republic in the capital stock.