Title
EXECUTIVE ORDER NO. 59
Date
Dec 28, 1998
Joseph Ejercito Estrada directs the Philippine Ports Authority to modernize and rationalize government port services and facilities through private sector partnerships, ensuring improved infrastructure, labor protection, and enhanced inter-island trade.
Font Size:

Law Summary

Background and Justification

  • The government acknowledges the essential role of sea transport in providing livelihoods, economical transportation, promoting travel and tourism, and enhancing regional development.
  • Section 2 of Presidential Decree No. 857 mandates the Philippine Ports Authority (PPA) to implement an integrated program for port planning, development, financing, and operation.
  • Limited government resources have hindered the provision of world-class facilities in government ports, despite private sector willingness to invest.
  • The current condition of major government ports negatively impacts the impoverished sectors and impedes trade and commerce.

Section 1: Policy on Port Facilities and Services

  • The government aims to modernize and develop government ports in partnership with the private sector.
  • The PPA is tasked with rationalizing facility operators and service providers to encourage investment in infrastructure.

Key Points: • Accelerated modernization program in partnership with the private sector. • Unification of facility operators and service providers in government ports. • Labor to benefit from development and modernization.

Section 2: Unification and Rationalization of All Facility Operators and Service Providers

  • The PPA must implement a program to unify existing operators in ports with high passenger and cargo volume.

Key Requirements: • Existing operators must unify through merger, consolidation, or joint ventures. • New qualified operators can join if they provide expertise or resources, but no single corporation can own more than 30% without special permissions. • Unified contractors will be selected without public bidding and must reserve 5% of capital stock for labor. • Complete unification within 12 months post-declaration by PPA for modernization.

Section 3: Functions and Responsibilities of the Unified Contractor

  • The unified contractor will manage, operate, and develop the entire government port, providing essential port services.

Responsibilities Include: • Allocation of berths, cargo handling, security, and maintenance of facilities. • Financing and developing port infrastructure. • Attracting new clients and managing port real estate.

Section 4: Functions Retained by PPA

  • The PPA maintains regulatory oversight and ensures compliance with national port planning.

Ongoing Responsibilities: • Approving development plans and enforcing safety standards. • Collecting port charges and auditing operations. • Retaining police functions at the port.

Section 5: Minimum Terms and Conditions of the Contract

  • The contract with the unified contractor must stipulate key operational and financial obligations.

Important Conditions: • The port operates as a common user facility. • Unified contractor pays a fixed fee and a variable fee based on revenue. • Existing improvements become government property upon contract expiration or termination.

Section 6: Protection of Labor

  • The PPA must ensure the protection of labor rights, with existing operators responsible for past benefits.

Labor Obligations: • Unified contractor must assume obligations if operators are insolvent. • Compliance with labor laws is mandatory.

Section 7: Absorption of Labor

  • The unified contractor is required to integrate the labor force from existing operators.

Labor Integration Procedures: • Offer voluntary retirement, training, and other assistance. • Respect existing collective bargaining agreements.

Section 8: Social Amelioration Fund

  • A fund must be established by the unified contractor for the benefit of port labor.

Section 9: Inter-modal Transportation Plan

  • The Department of Transportation and Communications (DOTC) is responsible for developing a master plan to connect ports with mass transport systems.

Section 10: Other Agencies Support

  • All government entities are directed to assist the PPA in executing this executive order.

Section 11: Implementing Rules

  • The PPA shall issue rules for implementation, with DOTC handling sections related to the social fund and transportation plan.

Section 12: Repealing Clause

  • This order repeals inconsistent previous issuances.

Section 13: Separability

  • Invalid provisions will not affect the remaining sections of the executive order.

Section 14: Effectivity

  • The order takes effect 15 days post-publication in a general circulation newspaper.

Key Takeaways

  • Executive Order No. 59 mandates the modernization of government ports through rationalization and unification of service providers.
  • The PPA retains regulatory functions while the unified contractor takes on operational responsibilities.
  • Worker rights and labor integration are prioritized, with provisions for social amelioration and protection of existing labor benefits.
  • The executive order sets a framework for enhancing port services and facilities to boost economic development.

Analyze Cases Smarter, Faster
Jur is an AI-powered legal research tool in the Philippines with case digests and full jurisprudence. AI summaries highlight key points but might skip important details or context. Always check the full text for accuracy.

About Privacy Terms