EXECUTIVE ORDER NO. 212
EXECUTIVE ORDER NO. 212 -
ACCELERATING THE DEMONOPOLIZATION AND PRIVATIZATION PROGRAM FOR
GOVERNMENT PORTS IN THE COUNTRY
WHEREAS, Article XII, Section 19 of
the Constitution declares that “the State shall regulate or prohibit
monopolies when the public interest so requires. No combinations
in restraint or trade or unfair competition shall be allowed;”
WHEREAS, the Philippine Ports Authority (PPA) is mandated by Sec. 2
of its Charter, Presidential Decree No. 857, as amended, to optimize
port financing and development to ensure the smooth flow of waterborne
commerce passing thru the country’s ports;
WHEREAS, operation of cargo handling and port services by a single
cargo handling or port service contractor tends to breed inefficiency;
and
WHEREAS, there is a need to accelerate the demonopolization and
privatization programs initiated by the Government for all ports under
the administration of the PPA.
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby
order:
Section 1. Demonopolization Program. — The Department
of Transportation and Communications (DOTC), through the PPA, shall
accelerate the demonopolization and liberalization of all government
ports in the country by allowing and encouraging competition in the
provision of cargo handling and other port services in every government
port or terminal facility, consistent with cargo volume, revenue and
physical configuration of the port or terminal facility.
Under this program, shipowners, ship operators, charterers or other
users shall have the option to contract or engage the services of the
PPA-authorized cargo handler or port service contractor of their
choice. Towards this end, the PPA shall:
a.
Respect all existing cargo handling or port service contracts with the
PPA but shall not renew these upon their expiration including those
contracts with a renewal option on the part of the PPA;
b. Award or
grant, through competitive public bidding, non-exclusive multi-year
contracts of sufficient duration to allow the cargo handling or port
service contractor to realize a reasonable return on its investments in
equipment and other facilities; and
c. Allow the
participation of cooperatives as cargo handling or port service
contractors in ports where manual labor is predominantly employed due
to low volumes or the nature of cargo being handled.
Sec. 2. Privatization Program. — The DOTC, as the
lead agency, through the PPA, shall encourage and expand the
participation of the private sector in the operation, maintenance and
development of all government ports in the country through the
following:
a.
Capital leases to allow the private sector to operate, maintain and
develop port facilities and to charge appropriate rates for services
provided to users;
b. Cargo
licenses to private companies to undertake cargo handling services in
ports which cannot be considered under the capital lease concept for
strategic and economic reason. Tariffs shall also be deregulated
and shall be based on negotiations between cargo handling companies and
users;
c. Service
contracts to private companies with the manpower, logistics and
expertise to efficiently carry out dredging, port security, and other
such services to the private sector in the ports;
d. Tariff
review to eliminate charges on private ports and promote private sector
investment in the development of other private ports in the
country.
In all of the above undertakings, the DOTC, through the PPA, shall
ensure that the government shall realize a reasonable return on its
investments.
Sec. 3. Preparation of a National Port Transport
Plan. — The DOTC shall prepare a comprehensive National Port Transport
Plan responsive to the needs of regional development and compatible
with the Privatization Program, in coordination with the National
Economic and Development Authority (NEDA) and the PPA, integrating and
intermodal transport network that will efficiently and effectively link
road, rail, sea and air transport systems.
The National Port Transport Plan shall be maintained on a 15-year cycle
and the initial plan shall be submitted to the Office of the President
within one (1) year from the issuance of this Executive Order.
All local government units and national government agencies shall
notify the PPA of all port projects undertaken pursuant to Republic Act
No. 7718 for proper coordination and consolidation into the National
Port Transport Plan.
Sec. 4. Cartels and Unfair Trade Practices. — In
the implementation of the Demonopolization and Privatization Programs,
the PPA shall ensure that free access to the ports is allowed to all
sectors of the industry and that there shall be no discrimination in
the provision and availment of services or contracts.
There shall be no interlocking stockholders, directors, or officers or
common management between or among cargo handlers, port service
contractors or other port-related companies operating in the port or
terminal facility. Circumstances indicating such discriminatory
behavior, cartel or similar arrangements, or unfair trade practices
that defeat the objectives of this Executive Order shall be a ground
for the suspension or cancellation of any cargo handling or port
service contract with the PPA.
Sec. 5. Redundancy Provision. — The PPA shall
adopt appropriate measures to protect the interests of redundant and
displaced PPA and port personnel resulting from the implementation of
the Demonopolization and Privatization Programs. Towards this
end, the PPA shall provided redundancy or separation benefits as may be
authorized under existing laws. Likewise, the PPA shall ensure that the
welfare and security of tenure of port workers are assured in every
port that is privatized.
Sec. 6. Other Agencies Assistance. — All
government departments, offices, agencies or instrumentalities,
government-owned or controlled corporations, including but not limited
to the Department of Trade and Industry, the Department of Finance, the
Department of Public Works and Highways, the Department of Environment
and Natural Resources, the NEDA, the Bureau of Customs and the Maritime
Industry Authority are hereby ordered to assist and coordinate with the
DOTC and the PPA in the implementation of this Executive Order.
Sec. 7. Implementing Rules. — The PPA, with the
approval of the DOTC, shall prepare the necessary rules and regulations
to implementation this Executive Order.
Sec. 8. Repealing Clause. — This Executive Order
repeals or amends all executive, department and other agency issuances
or any provision thereof inconsistent herewith.
Sec. 9. Effectivity. — This Executive Order shall
take effect fifteen (15) days after its publication in a newspaper of
general circulation.
DONE in the City of Manila,
this 28th day of November in the year of Our Lord, Nineteen Hundred and
Ninety-Four.
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Since 19.07.98.