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PRESIDENTIAL DECREE NO. 505
PRESIDENTIAL DECREE NO. 505
- PROVIDING FOR THE REORGANIZATION OF PORT ADMINISTRATION AND OPERATION
FUNCTIONS IN THE COUNTRY, CREATING THE PHILIPPINE PORT AUTHORITY,
PAVING THE WAY FOR THE ESTABLISHMENT OF INDIVIDUAL, AUTONOMOUS
PORT/INDUSTRIAL ZONE AUTHORITIES IN THE DIFFERENT PORT DISTRICTS, AND
FOR OTHER PURPOSES
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chanroblesvirtualawlibrary
WHEREAS, a
port is not only a vital link in the total transportation and trade
system, but a major factor in harnessing the human and natural
resources of a region in the total context of National Development;chanroblesvirtualawlibrary
WHEREAS, harbors and the tributary areas have their own peculiar
potentialities to be considered in port development;chanroblesvirtualawlibrary
WHEREAS, the concept of port administration has in this country been
focused on the traditional functions of revenue collection, harbor
maintenance and cargo handling, to the exclusion of the port's fuller
utilization and development as a spur for regional growth;chanroblesvirtualawlibrary
WHEREAS, it is perceived that the broader role of ports goes beyond the
function of serving as the hub of maritime trade but extends to the
wider area of acting as a catalyst that may hasten the expansion of the
economic development of an area;chanroblesvirtualawlibrary
WHEREAS, there is need to integrate and coordinate port development at
the national level and the same time promote the growth of autonomous
regional port development bodies responsive to the needs of their
individual localities;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, in order to
effect the desired changes and reforms in the social economic and
political structure of our society, do hereby decree and order that the
following be adopted and made part of the laws of the land;chanroblesvirtualawlibrary
Section 1. Title. — This Decree shall be known as the
Philippine Port Authority Decree of 1974. chanroblesvirtualawlibrary
Section 2. Declaration of Policies and Objectives. —
It is hereby declared to be the policy of the State to implement an
integrated program of port development for the entire country in
accordance with the following objectives: (a) to streamline and
optimize the planning, development, construction, maintenance and
operation of ports, port physical plants and facilities, (b) to ensure
the smooth flow of waterborne commerce passing through the country's
port in the conduct of international and domestic trade, (c) to promote
regional development through the dispersal of industries and commercial
activity throughout the different regions, (d) to foster free
enterprise and sustain the growth of export and other priority
industries and, (e) to redirect port administration beyond its specific
and traditional duties in harbor, cargo and revenue operations to the
broader function of total port district development, including the full
and faithful utilization of the port's hinterland and tributary areas.
In order to attain these objectives, the Government through the
Philippine Port Authority hereinafter created shall: chanroblesvirtualawlibrary
(a) Draw up and implement an integrated Philippine
Port Development Program which shall embody the following: the review
and reorganization of the present set-up of port administration,
operations, physical plants and facilities; the classification of the
different ports in the country according to size, importance, potential
for growth and the nature and structure of surrounding areas;
determination of the type and pattern of the local Port/Industrial Zone
Authorities to be established in the different ports; and the
definition to the broad operational guidelines to be followed by these
individual Authorities;chanroblesvirtualawlibrary
(b) Encourage and stimulate the establishment of
individual autonomous Port/Industrial Zone Authorities in the different
port districts through: (i) the provision and/or assistance in the
provision of financial support from public and private financing
sources, (ii) technical assistance, (iii) the granting of incentives
particularly during the early years of operation; and (iv) in general,
the maintenance of close cooperation and a smooth working relationship
with the individual Port/Industrial Zone Authorities;chanroblesvirtualawlibrary
(c) Provide for the effective supervision, regulation
and control of the organizational management, ownership and structure
of individual Port/Industrial Zone Authorities in the given port
districts; and
(d) Exercise broad supervisory and regulatory powers
over the actual operations of individual Port/Industrial Zone
Authorities in keeping with their autonomous character.
A. THE PHILIPPINE AUTHORITY
Section 3. The Philippine Port Authority Creation and
Organization. — There is hereby created a Philippine Port Authority,
hereinafter referred to as the "Authority". The corporate powers of the
Authority shall be vested in a governing board of directors to be known
as the Philippine Port Authority Council, herein after referred to as
the "Council".
The Authority shall have general jurisdiction and control over all
persons, corporations, firms or entities, existing, proposed or
otherwise to be established within the different port districts in the
Philippines and shall supervise, regulate and exercise its powers in
accordance with the provisions of this Decree.
The principal office of the Authority shall be in the Greater Manila
area but it may established branches and agencies within the
Philippines as may be deemed necessary by the Council. chanroblesvirtualawlibrary
Section 4. Philippine Port Development Program. — The
Authority, in coordination with the national agencies of the
Government, shall prepare and annually update a Ten-Year Philippine
Port Development Program, hereinafter referred to as the "Program"
which shall embody the integrated plan for the development of the
country's ports and harbors. The Program shall be submitted for
approval by the President of the Philippines.
Upon approval of the Program by the President, all government
departments, bureaus, agencies and instrumentalities shall implement
the same within their respective jurisdictions. The authority shall
ensure that the approved Program is being effectively implemented by
the participating agencies. No government body or instrumentality shall
adopt any policy or take any course of action contrary to or
inconsistent with the Program. chanroblesvirtualawlibrary
B. PHILIPPINE PORT AUTHORITY COUNCIL
Section 5. Powers and Functions of the Council. — The
Philippine Port Authority Council shall have the following powers,
functions and duties, among others:cralaw:red
a. To provide comprehensive policy guidance for the
effective supervision and regulation of individual Port/Industrial Zone
Authorities to be established in the different port districts;chanroblesvirtualawlibrary
b. To formulate a comprehensive and practicable
Ten-Year Philippine Port Development Program and renew and update the
same annually in coordination with other national agencies of the
Government;chanroblesvirtualawlibrary
c. To promulgate and prescribe a set of rules and
regulations, standards, guidelines and procedures governing the
establishment of individual Port/Industrial Zone Authorities;chanroblesvirtualawlibrary
d. To issue specific standards to be met by
individual local Port/Industrial Zone Authorities in the conduct of
port operations, particularly on harbor conservation, maintenance and
navigation and in the collection of port fees and charges; accordingly,
these functions shall be exercised with the Bureau of Public Works and
the Bureau of Customs and a practicable arrangement for the
coordination of said functions shall be worked out with the appropriate
agencies; chanroblesvirtualawlibrary
e. To recommend to the President, whenever the
national interest demands it, that the State, through an agency the
Authority may designate, take over the administration and operation of
a specific port district or portion thereof;chanroblesvirtualawlibrary
f. To approve specific applications of any person,
firm or entity to operate, administer and establish an individual
Port/Industrial Zone Authority in a particular area;chanroblesvirtualawlibrary
g. To exercise the right of eminent domain by
expropriating the surrounding and tributary areas of a harbor or
harbors which, in the opinion of the Authority, are vital to the total
port district development;chanroblesvirtualawlibrary
h. To approve the organizational structure, staffing
pattern, and budget of the Authority upon the recommendation of the
General Manager;chanroblesvirtualawlibrary
i. To appoint, discipline and remove, and determine
the composition of the technical staff of the Authority and other
personnel: Provided, That all positions in the Authority which are
confidential or highly technical in nature shall not be subject to the
Civil Service Law and Rules: Provided, further, That appointments of
personnel in the management below the rank of section chief shall be
made by the General Manager, in accordance with the approved budget and
staffing pattern and shall be noted by the Council; Provided,
furthermore, That the Council or General Manager may engage or
contractual basis, or other arrangements for the temporary services,
and fix the compensation of highly qualified professionals, experts,
technical advisers or consulting firms;chanroblesvirtualawlibrary
j. To adopt, alter and use a corporate seal which
shall be juridically noticed; approve and make contracts, determine the
exact location of its office and prescribe the rules and regulations to
govern its proceedings;chanroblesvirtualawlibrary
k. To recommend to the President, through the
National Economic and Development Authority, the grant of necessary
incentives to individual Port/Industrial Zone Authorities;chanroblesvirtualawlibrary
l. After 3 July 1974, to exercise over-all
supervision over the port facilities of the large foreign petroleum
companies in matters pertaining to safety, pollution and conservation
in the harbors;chanroblesvirtualawlibrary
m. To exercise regulatory and supervisory powers over
the marine aspect of the administration and operation of port zones
such as the Bataan Export Processing Zone, the proposed Jolo free port,
Zamboanga, Parang in South Cotabato, and others;chanroblesvirtualawlibrary
n. To plan and coordinate the establishment of
Port/Industrial Zone Authorities in specific areas producing the
country's main export products, such as bananas, logs, sugar, coconut
products and mineral ores; and
o. To perform such acts as may be deemed proper and
necessary to carry out and implement the provisions of this Decree.
Section 6. Composition and Organization. — The
Council shall be composed of eleven members as follows: The Secretary
of Finance, the Secretary of Trade, the Secretary of Industry, the
Executive Secretary, the Secretary of Public Works, Transportation and
Communications, Secretary of Public Highways, the Director General of
the NEDA, the Secretary of National Defense, the General Manager of the
Philippine Port Authority and a representative from the private sector,
to be designated by the President. The Chairman of the Council shall be
appointed by the President of the Philippines from among its members.
The officials next in rank to the regular members shall serve as
permanent alternate members, except that, in the absence of the
Chairman, the Council shall elect a temporary presiding officer. The
alternate members shall attend meetings of the Council and Committees
assigned to their principals and receive the corresponding per diems
whenever their principal is absent or the said position is vacant.
The Council shall meet regularly once a month and at its discretion,
hold special meetings to consider urgent matters upon call of the
Chairman or any three members thereof. A majority shall constitute a
quorum for the transaction of business.
Each member of the Council shall receive a monthly commutable allowance
of five hundred pesos and per diem of one hundred for every meeting of
the Council for Committee thereof actually attended. Provided, That the
total allowable amount of per diems each month shall not exceed five
hundred pesos.
C. MANAGEMENT
Section 7. Management Head. — The management of the
Authority shall be vested in the General Manager who shall be directly
assisted by two Assistant General Managers, one for Planning and the
other for Operations. chanroblesvirtualawlibrary
Section 8. Appointment, Tenure, Qualifications and
Compensation. — The General Manager and the two Assistant General
Managers shall be appointed to by the President for a term of six
years: Provided, That upon the expiration of their respective terms,
they shall continue to serve until their successor shall have been
appointed and qualified: Provided, further, That no vacancy shall be
filled except for the unexpired portion of the term: Provided, finally,
That the President may remove the General Manager and the Assistant
General Manager from office for cause upon recommendation of the
Council.
The General Manager and the Assistant General Managers shall be
citizens of the Philippines, at least thirty-five years old on the date
of their appointment, of good moral character, of recognized executive
ability, and competence in previous public or private employment, with
adequate training and experience in economics, finance, law,
management, technology, public utility or preferably in the phases and
aspects of the port administration. Until otherwise fixed by the
Council, their annual salaries and allowances shall be as follows:cralaw:red
General Manager
Annual Salary P50,000.00
Monthly Commutable Allowance 2,000.00
Assistant General Manager
Annual Salary P40,000.00
Monthly Commutable Allowances 1,500.00
The General Manager shall be directly responsible to the Council and
shall have powers, functions and duties as provided in this Decree. The
Assistant General Manager, and their respective powers, functions and
duties shall be determined by the Council, upon recommendation of the
General Manager. chanroblesvirtualawlibrary
Section 9. General Powers and Functions of the
General Manager. — Subject to the general supervision and control of
the Council, the General Manager shall have the following general
powers, functions and duties:cralaw:red
a. To implement, enforce and apply the policies,
program, standards, guidelines, procedures, decisions and rules and
regulations issued, prescribed or adopted by the Council pursuant to
this Decree;chanroblesvirtualawlibrary
b. To undertake researches, studies, investigations
and other activities and projects, on his own initiative or upon
instructions of the Council, and to submit comprehensive reports and
appropriate recommendations to the Council for its information and
action;chanroblesvirtualawlibrary
c. To manage the day to day affairs of the Authority
subject to the provisions of this Decree and applicable laws, orders,
rules and regulations of other appropriate government entities;chanroblesvirtualawlibrary
d. To assist approved and prospective Port/Industrial
Zone Authorities in having their papers processed with dispatch by all
Government offices, agencies, instrumentalities and financial and
banking institutions;chanroblesvirtualawlibrary
e. To prepare the agenda for the meeting of the
Council, the Authority's annual budget and such other measures and
recommendations which may require the approval of the
Council; chanroblesvirtualawlibrary
f. To establish the internal organization of the
Authority under such conditions that the Council may prescribe:
Provided, That any major reorganizational changes shall be subject to
the approval of the Council; and
g. To perform such other duties as the Council may
assign and such acts as may be necessary and proper to implement this
Decree.
D. INDIVIDUAL, AUTONOMOUS PORT/INDUSTRIAL ZONE AUTHORITIES
Section 10. Broad Policy Considerations. — The
establishment of individual, autonomous Port Authorities and/or
Industrial Zones in the different port districts shall be governed by
the following broad policy considerations: chanroblesvirtualawlibrary
a. Individual Port/Industrial Zone Authorities, once
established, shall exercise full autonomy and flexibility in their
operations similar to that of any other business enterprises;chanroblesvirtualawlibrary
b. Due attention should be given to the improvement
and optimal utilization of the ports surrounding areas eventually
providing for the gradual and progressive expansion and economic
development of the entire port district;chanroblesvirtualawlibrary
c. The individual Port/Industrial Zone Authority may,
in subsequent periods, depending on the success and viability of its
operations, expand its scope and functions to include the management of
utilities, housing, commercial enterprises, goods and services and
other facilities within its territorial jurisdiction. The Authority
shall assist individual Port/Industrial Zone Authorities in the
attainment of their expansion goals;chanroblesvirtualawlibrary
d. In such matters where the national interest so
requires, the Government may through the Philippine Port Authority,
intervene in the operations of individual Port/Industrial Zone
Authorities;chanroblesvirtualawlibrary
e. The ownership of corporations, firms or entities
operating and administering a given port shall be controlled by
citizens of the Philippines, in accordance with the citizenship
provisions of existing laws on corporate ownership and partnerships;chanroblesvirtualawlibrary
f. Since the establishment and operation of
Port/Industrial Zone Authorities shall require a sizeable amount of
capitalization, the entry of foreign investment shall be given
favorable consideration; and
g. The granting of incentives shall be opened to
persons, firms or entities who may establish a Port/Industrial Zone
Authority in a given port district. chanroblesvirtualawlibrary
E. REORGANIZATIONAL CHARGES
Section 11. Reorganizational Changes. — In view of
the reorganizational changes rendered necessary and imperative by this
Decree, there is hereby created an inter-agency Committee to study and
recommend measures on reorganization and turnover or responsibilities
relative to the effective implementation of this Decree.
The composition of the Committee shall be as follows:cralaw:red
The General Manager-Designate
Philippine Port Authority —
Chairman
Representative of the Executive
Office — Vice-Chairman
The Commissioner of Customs — Member
The Director of Public Works — Member
The Commandant of the Coast
Guard — Member
Representative of the National
Economic and Development
Authority — Member
Representative of the
Department of Trade — Member
Representative of the
Department of Industry — Member
Representative of the
Conference of Inter-island
Shipowners and Operators — Member
The Committee shall submit to the Council its recommended
reorganizational changes not later than sixty days after the
promulgation of this Decree. Upon the approval by the Council, the
reorganizational changes shall form an integral part of this Decree.
More specifically, the recommended reorganizational changes shall
include but not limited to the following:cralaw:red
a. Delineation of the powers and duties of the
Authority, Bureau of Customs, Bureau of Public Works, and other
governmental agencies directly involved in the administration,
operations, constructions, and maintenance of public ports; chanroblesvirtualawlibrary
b. List of offices and positions in the Bureau of
Customs and Bureau of Public Works to be transferred to the Authority;chanroblesvirtualawlibrary
c. Procedures and time frame for the gradual turnover
of above powers, duties, offices, and positions from the Bureaus
affected by the reorganization to the Authority, including movable and
immovable properties, accounts and records necessary, useful or
incidental to the discharge of said powers and duties of the Authority
or port bodies falling under its jurisdiction; and
d. Relationship of the Authority to other
governmental agencies and private firms involved or having interests in
the activities of ports.
The Committee's operational expenses shall be funded from Port Works
Special Fund.
F. MISCELLANEOUS PROVISIONS
Section 12. Appropriations. — To carry out the
provisions of this Decree, there is hereby appropriated the sum of two
million pesos out of the funds in the National Treasury not otherwise
appropriated. Thereafter, the succeeding appropriations of the
Authority shall be included in the Annual Appropriations Act.
In addition to the above, the Authority is hereby authorized to retain
fifty per cent of its collections from fees, charges and fines to
defray and deficiency in annual appropriations and to finance its other
projects.
Section 13. Power of Issue Bonds and Incur
Indebtedness. — The Authority may contract loans, credits and other
indebtedness or issue bonds, notes debentures, securities and other
borrowing instruments, if necessary, to carry out its Programs. The
Council shall promulgate a resolution stating the purpose of the loan
and citing the project study supporting the proposed borrowing. To be
valid, the resolution must carry the affirmative vote of at least five
members of the Council and be approved by the President of the
Philippines, upon the recommendation of the Secretary of Finance, after
consultation with the National Economic and Development Authority and
the Monetary Board of the Central Bank. chanroblesvirtualawlibrary
The total principal domestic indebtedness of the Authority payable in
Philippine currency shall not at any one time exceed three hundred
million pesos, while the total principal indebtedness of the Authority
payable in foreign currency shall not at any one time exceed one
hundred million United States dollars or the equivalent thereof in
foreign currencies.
Section 14. Repealing and Separability Clauses. — All
laws, decrees, orders, rules and regulations, policies, programs or
parts thereof, which are inconsistent with any of the provisions of
this Decree, are hereby repealed or modified accordingly.
If for any reason any section or provision of this Decree is declared
to be unconstitutional or invalid, the other sections or provisions
hereof, which are not affected thereby, shall continue in full force
and effect.
Section 15. Effectivity. — This Decree shall take
effect upon its promulgation: Provided, That these portions hereof
which may require a transition period to assure the orderly transfer of
powers and function shall take effect as stated in the implementing
details: Provided, further, That such implementing details shall be
prepared by the Council, in consultation with the government agency
heads concerned, and submitted to the President for approval within
four months after issuance of this Decree.
Done in the City of Manila,
this 11th day of July, in the year of Our Lord, nineteen hundred and
seventy-four.
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