Legal basis and cited frameworks
- The Order is issued pursuant to Presidential Decree No. 857, as amended, particularly Sections 6(a)(ii)(iii)(iv)(b)(vi)(ix)(xv), Article IV, and Sections 19 and 20(a), Article VII.
- The Order references the Implementing Rules and Regulations of R.A. 9184, including Rule VI, Section 17 and Rule X, Sections 34.2 and 35.
- The Order is also issued in consonance with Executive Order Nos. 170 and 170-A.
- The Order further aligns with DOTC Department Order Nos. 2003-16 and 2003-39.
- The Order’s privatization process also requires compliance with R.A. 9184.
Policy objectives and system coverage
- The Order establishes a special facility to process RRTS investment applications within the 30-day period under Executive Order Nos. 170 and 170-A.
- The Order sets procedures for the privatization of PPA-owned Ro-Ro terminals listed under the Road Roll-on/Roll-off Terminal System (RRTS).
- The privatization coverage includes terminals under the Western Nautical Highway, Central Nautical Highway, and Eastern Nautical Highway.
- The Order applies to the development, construction, management, and operation of RRTS ferry terminals as a nationwide system.
Key definitions under the Order
- A Road Ro-Ro Ferry Terminal System is the network of terminals all over the country, regardless of the distance covered and linked by Ro-Ro vessels.
- Ro-Ro Operation means the loading and discharging of self-powered vehicles (such as cars and trucks) on their own wheels by their owners or drivers between vessel and shore via a ramp.
- Ro-Ro Ferry Terminals are terminals that cater basically to Ro-Ro linked ferry vessels servicing passenger buses and private vehicles.
- Ro-Ro Facilities are Ro-Ro terminals constructed and operated by either the private sector or PPA.
- Mediterranean berthing refers to vessels berthed perpendicular to the pier or wharf.
- The Liberalized Private Ports Policy of PPA is PPA Administrative Order No. 06-95, which provides guidelines on granting PPA clearance to develop, permit to construct, and operate a private port facility.
Eligibility and minimum terminal requirements
- An RRTS Terminal Project Proponent must be a registered single proprietorship, partnership, corporation or cooperative registered with the appropriate government agency (Section 4.1).
- For joint ventures, SEC registration must be complied with before issuance of a Certificate of Registration/Permit to Operate (COR/PTO) (Section 4.1).
- The proponent must employ key officials with at least two (2) years minimum experience in port management and/or vessel operations (Section 4.2).
- The proponent must have financial capability to fund and sustain detailed engineering design, construction, and operation and maintenance of the RRTS Ro-Ro ferry terminal project (Section 4.3).
- Existing PPA registered private port operators may qualify to operate Ro-Ro port services under the RRTS subject to Sections 4.1, 4.2, 4.3 and Section 5 of the Order (Section 4).
- Every RRTS Ro-Ro ferry terminal or port must cater to any type or design of Ro-Ro vessels for both berthing alongside and Mediterranean berthing (Section 5).
- Every terminal must have sufficient facilities and amenities for passengers and Ro-Ro vehicles, including (at least):
- Ro-Ro docking facilities, where an ordinary ramp must accommodate a Ro-Ro vessel with 1,000 GRT or equivalent to the width of two (2) trucks (Section 5).
- Passenger terminal facilities including: sufficient passenger seats; clean comfort rooms for male/female; drinking stations and water system; child care stations with feeding area for nursing mothers/diaper changing table; access ramps and railings for handicapped passengers/port users; priority lanes for pregnant women, women with children, and senior citizens; properly labeled receptacles to segregate wastes; and covered walkways within entry/exit doors (Section 5).
- A marshalling yard, a lane meter measurement area, a parking area, and security and safety facilities (Section 5).
Term, fee, and operating incentives
- An RRTS Terminal Operator may develop, construct, and operate the terminal facility for a period of twenty-five (25) years (Section 6.1).
- The operating period may be renewed for another twenty-five (25) years, subject to DENR and PPA requirements (Section 6.1).
- For the privilege of operating the port, the RRTS terminal operator must pay PPA through the PMO an annual privilege fee of PHP 20,000.00 per port/terminal (Section 6.2).
Clearance procedures for development and operation
- The application for clearance to develop RRTS terminals must be processed under the Order’s specified procedure (Section 7).
- The applicant/project proponent must file a formal letter of intent with the concerned PMO together with documents required under Annex A (Section 7.1).
- After receipt of complete documentary requirements, the PMO evaluates within one (1) week and submits its recommendation to the PDO (Section 7.1).
- The PDO reviews the PMO’s findings within one (1) week and forwards pertinent documents to the Office of the AGM for Operations, attention Commercial Services Department (CSD) (Section 7.1).
- The CSD evaluates within one (1) week and submits its recommendation to the General Manager through the AGM for Operations (Section 7.2).
- The General Manager may issue the corresponding clearance to develop and construct within one (1) week, with copies furnished to the PDO and the applicant/project proponent (Section 7.2).
- Upon completion, the project proponent must register its Ro-Ro ferry terminal or port and submit documents required under Annex B (Section 7.3).
Privatization of PPA-owned Ro-Ro terminals
- A Special Bids and Awards Committee (SBAC) is created to handle documentation, evaluation, and processing of bids for the privatization of all identified PPA-Owned Ro-Ro ferry terminals under the RRTS (Section 8.1).
- The SBAC endorses the privatization bid activities to the General Manager, through the AGM for Operations, for disposition (Section 8.1).
- As a general rule, privatization of Ro-Ro ferry terminals must be conducted through Open and Competitive Bidding based on Terms of Reference prepared by the BAC (Section 8.1).
- All pertinent provisions of R.A. 9184 must be complied with in the privatization process (Section 8.2).
Permit cancellation, monitoring, and due process
- The permit’s terms must include a condition allowing PPA to suspend, cancel, and terminate the COR/PTO for violations/infractions committed by the permittee (Section 9.1).
- The permit terms must include a waiver by the permittee of rights in favor of PPA over the foreshore lease area where facilities are located, including the corresponding easement or right of way (Section 9.1).
- Violations/infractions include non-compliance with terms and conditions integral to the COR/PTO, as shown in Annex C (Section 9.2).
- Violations also include breaches of other rules, laws, and regulations promulgated and to be promulgated by PPA and other concerned authorities relative to private port operations (Section 9.2).
- Due process for termination/cancellation requires issuance of a Notice of Violation to the permittee, with a 30-day grace period to explain and resolve/correct the violation (Section 9.3.1).
- If the permittee fails to correct the violations to the satisfaction of PPA within the 30-day period, PPA must suspend the permit and temporarily take over operation of the port until appropriate actions are taken (Section 9.3.2).
- If after six (6) months the violations remain unacted, PPA may cancel the RRTS permit and conduct public bidding for the lease, management and operation of the RRTS facility (Section 9.3.2).
- PMOs must strictly monitor all RRTS operations and oversee implementation of all contract provisions, including permit terms and conditions (Section 9.4).
- PMOs must report immediately any violations/infractions to the AGM for Operations, attention CSD (Section 9.4).
Penalties, repeals, and separability
- Violation of any provision of the Order and other relevant PPA regulations subjects violators to the penalties provided under P.D. 857, as amended (Section 10).
- All PPA orders, rules and regulations, or issuances inconsistent with the Order are deemed modified, amended, or revoked accordingly (Section 11).
- If any provision or section is held invalid, the remaining provisions continue in full force and effect (Section 12).