Title
Regulations on Private Ports Operation
Law
Ppa Administrative Order No. 06-95
Decision Date
Dec 4, 1995
PPA Administrative Order No. 06-95 establishes streamlined guidelines for the development, construction, and operation of private ports, promoting investment while ensuring compliance with national security and public safety regulations.
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Definition of Terms

  • Port Zone: Area proclaimed by the President for port use.
  • Foreshore: Land between high and low watermarks, alternately covered and dry due to tides but outside port zones.
  • Foreshore Lease Agreement for Pier Purposes: Lease contract issued by the DENR for foreshore/offshore areas, renewable for up to 25 years each term.
  • Private Port: Privately owned port facilities authorized by the government, classified as:
    • Private Non-Commercial Port: For own business use without public services.
    • Private Commercial Port: Offers port services as its principal business.
    • Private River Port: Located along a river.
    • Marina: Non-commercial port for motorboats and yachts only.

General Policy Statements

  • Encourages private port development and operation subject to national security and safety.
  • Approval needed for private ports; private non-commercial, river ports and marinas approved by General Manager; others require PPA Board approval.
  • Certificates and permits are valid for 25 years, renewable but co-terminus with foreshore lease. Non-renewal results in ownership transfer to PPA unless land is reclaimed.
  • Expired contracts may be re-leased to previous owners.
  • Operating permit authorizes operation for the specified duration.

Evaluation Criteria for Applications

  • Applications must comply with this Order and government laws.
  • Private commercial ports require a minimum 1 concrete berth, 65 meters length, and 5 meters draft.
  • Applications include site details, project scope and specs, port layout plans, and company profile.

Clearance to Develop Private Port Facilities

  • Formal letter of intent filed with Port Management Office (PMO).
  • PMO evaluates in two weeks, issues no objection certification, informs applicant of PPA plans.
  • Port District Office concurs within two weeks; endorses to Commercial Services Department (CSD).
  • CSD processes within four weeks, notifies applicant on denial or approval, escalates to AGM Operations and General Manager, and if commercial port, to PPA Board.
  • Clearance notification issued upon approval.

PPA Certification for Foreshore Lease Applications

  • PPA certification aligning applied area with PPA plans is requisite for DENR foreshore lease.
  • Certification can be issued by Port Manager without DENR request.
  • PMOs and CSD receive updated development plans.

Permit to Construct Application

  • After DENR lease issuance, submit construction plans and application for Permit to Construct.
  • CSD informs Port District Manager (PDM) on board clearance.
  • PDM evaluates within three weeks.
  • Upon approval, issues billing notice and permit upon fee payment:
    • Below P10M project cost: P10,000
    • Above P10M: P10,000 + 0.1% of excess, max P100,000.

Certificate of Registration and Permit to Operate

  • New port investors and existing operators must register within three weeks after document submission.
  • Only registered ports qualify for discounted port dues.
  • Ports handling both commercial and non-commercial cargoes are deemed commercial.
  • Existing operators without permits must register within 30 days or lose privileges.
  • PMO submits registration status biannually.
  • Moratorium on 100% port charges on unregistered ports until May 30, 1996.

Cargo Handling Permit

  • Registered private ports may undertake cargo handling operations.
  • Must submit required periodic operational reports.

Privilege Fee

  • Annual fees for permits:
    • Private commercial ports: P20,000
    • Private non-commercial ports: P10,000
    • Marina and private river ports: P5,000
  • Fee also applies to cargo operations at anchorage linked to registered ports.

Improvement Requests

  • Requests for expansion or rehabilitation approved by District Manager after evaluation by Engineering Services Division.
  • Approved requests copied to Port District Director and CSD.

Transfer of Operating Permits

  • Transfers or sales of permits require prior written clearance from the Authority.

Management of Expired Foreshore Leases and Permits

  • PMOs monitor private ports and notify for renewal at least 30 days before expiry.
  • Non-renewal construed as turnover of ownership to PPA.
  • District Manager authorized to sign turnover documents for the Authority.
  • Privileges cease upon expiration except for a 6-month grace period if renewal application is timely submitted.
  • Ports with expired leases but no renewal can avail discounted dues if covered by a lease agreement with PPA.
  • AGMOps assesses expired leases for feasibility and prepares lease agreements.

Penalties

  • Violations subject to penalties under Section 43 of PD 857.
  • Unauthorized construction without clearance and permit incurs minimum P20,000 penalty plus permit fees.

Visitorial Powers

  • PPA officials may inspect private port premises anytime in the exercise of supervisory authority.

Document Repository

  • All related documents and records must be submitted to CSD for safekeeping and reference.

Repealing Clause

  • Repeals all inconsistent orders, rules, policies, memoranda.

Separability Clause

  • Invalidity of any provision does not affect the rest of the Order.

Effectivity

  • Effective 15 days after publication in a newspaper of general circulation.

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