Scope of Joint Venture Agreements
- Guidelines apply to port infrastructure projects and port-related services.
- Joint ventures may be formed between PPA and private sector entities or other government agencies.
General Guidelines for Joint Ventures
- JVs must align with PPA's objectives as outlined in P.D. 857.
- Only new or highly necessary port projects/services are eligible for JV agreements.
- Investment agreements must define PPA's participation level and mutual benefits for parties.
- PPA must have representation on the JV management board proportional to its asset share.
- If a JV takes over operations from existing PPA units, personnel may transfer under specified conditions:
- 25% salary increase.
- Security of tenure for 5 years before deemed resignation from government service.
- Proposed JVs must be publicly advertised once; unsolicited proposals are also advertised allowing 60 days for competing offers.
Preferred Port Projects for Joint Ventures
- Eligible projects include:
- Construction/operation of piers, wharves, cargo and passenger terminals.
- Warehousing, container yards, container freight stations, special handling equipment.
- Dredging operations.
- Terminal operations, arrastre, and stevedoring services.
- Harbor vessel traffic management system installation/operation.
- Other authorized port-related projects and services.
Qualifications of Co-Venturers and Citizenship Requirements
- Private sector co-venturers must:
- Be registered with relevant government investment authorities if foreign.
- Have successful experience or key personnel with relevant expertise.
- Possess sufficient financial capacity relative to PPA investment.
- Government agency co-venturers are exempt from private sector requirements.
- Joint venture companies must comply with constitutional citizenship rules.
Evaluation Procedures for Joint Venture Proposals
- Private sector proposals must include a pre-feasibility study.
- Initial evaluation by Port District Managers.
- A Joint Venture Committee (JVC) reviews and recommends proposals:
- Composition: AGM for Operations (Chairman), Manager CSD (Vice-Chair), Managers of PDD, LSD, POSD, DOTC IIG rep, and PDO/PMO Manager.
- CSD serves as secretariat.
- Recommendations forwarded to the Management Executive Committee (MEC), then to the Board, and subsequently to the GCMCC.
- Final proposal approval rests with the President of the Philippines.
PPA's Role and Incentives in Joint Ventures
- PPA holds up to 49% equity share in JV projects.
- PPA participates in policy decisions but not daily operations.
- Grants easement rights and site areas within territorial jurisdiction, subject to equity ceiling.
Reporting and Compliance
- The JVC Chairman must submit monthly progress reports to the PPA General Manager.
Legal Provisions
- Invalid provisions do not affect the rest of the Order (saving clause).
- Existing PPA orders inconsistent with these guidelines are repealed or amended.
- Immediate effectivity from March 1, 1995.