Creation and Organization of the Philippine Port Authority (PPA)
- Creation of PPA with corporate powers vested in a governing board known as the Philippine Port Authority Council
- PPA to have general jurisdiction and control over all entities within port districts
- Principal office in Greater Manila, with branches as needed
Philippine Port Development Program
- PPA to prepare and annually update an integrated Ten-Year Philippine Port Development Program
- Program to be submitted to the President for approval
- Upon approval, all government agencies must implement and conform with the Program
Powers and Functions of the Philippine Port Authority Council
- Provide comprehensive policy guidance for supervision and regulation of Port/Industrial Zone Authorities
- Formulate and update Ten-Year Port Development Program
- Promulgate rules, regulations, standards, and procedures for establishment and operation of Port/Industrial Zone Authorities
- Set standards on harbor conservation, maintenance, navigation, fees collection, coordinating with Bureau of Public Works and Bureau of Customs
- Recommend State takeover of port districts when required by national interest
- Approve applications, organizational structures, staffing, budgets of individual port authorities
- Appoint, discipline, and remove Authority personnel; some positions exempted from Civil Service
- Adopt corporate seal, enter contracts, and prescribe operational rules
- Recommend incentives for Port/Industrial Zone Authorities
- Supervise port facilities of large foreign petroleum companies on safety, pollution, and conservation
- Regulate marine administration of port zones like export processing zones and free ports
- Plan and coordinate establishment of Port/Industrial Zone Authorities in export producing areas
Composition and Organization of the Council
- Eleven members including key government secretaries, the General Manager of the PPA, and private sector representative appointed by the President
- Chairman appointed by the President from its members
- Meetings held monthly or as necessary, with quorum and per diem provisions
Management of the Authority
- Management vested in a General Manager directly assisted by two Assistant General Managers (Planning and Operations)
- Appointed by the President for six-year terms, with qualifications in executive ability and relevant experience
- Salaries fixed but subject to Council approval
Powers and Functions of the General Manager
- Implement Council policies and decisions
- Conduct studies and submit reports
- Manage daily affairs of the Authority
- Assist Port/Industrial Authorities in dealings with government and financial institutions
- Prepare Council agendas, budget, and propose organizational changes
- Perform duties as assigned by the Council
Establishment of Individual Autonomous Port/Industrial Zone Authorities
- Full operational autonomy similar to business enterprises
- Focus on improvement and optimal use of port surrounding areas and economic expansion
- May expand functions to utilities, housing, commercial enterprises, etc.
- PPA to assist in expansion goals
- Government intervention possible if national interest demands
- Ownership to be controlled by Filipino citizens per existing laws
- Foreign investment encouraged given capital requirements
- Incentives granted to establish Port/Industrial Zone Authorities
Reorganizational Changes
- Creation of an inter-agency committee headed by the General Manager-Designate of PPA to recommend reorganization
- Duties: Delineate powers of PPA, Customs, Public Works; transfer offices and personnel; draw procedures and timeframes for gradual turnover; establish relations with other agencies and private firms
- Recommendations to be submitted within 60 days and approved by the Council
- Funded from Pork Works Special Fund
Appropriations
- Initial funding of two million pesos appropriated from National Treasury
- Subsequent funding included in Annual Appropriations Act
- PPA authorized to retain 50% of its fees and charges collections to cover funding deficiencies and projects
Power to Issue Bonds and Incur Indebtedness
- Allowed to contract loans and issue bonds/notes for program implementation
- Borrowing resolutions require 5 affirmative votes in Council and President's approval upon Secretary of Finance recommendation
- Domestic debt ceiling: 300 million pesos; Foreign debt ceiling: 100 million USD or equivalent
Repealing and Separability Clauses
- Laws or provisions inconsistent with this Decree are repealed or modified
- Invalidity of any part does not affect the rest of the Decree
Effectivity
- Decree takes effect upon promulgation
- Transition periods allowed for orderly transfer of powers
- Council to prepare implementing details within four months for Presidential approval