REPUBLIC ACT NO. 7621 - AN ACT
CREATING THE CEBU PORT AUTHORITY, DEFINING ITS POWERS AND FUNCTIONS,
PROVIDING APPROPRIATION THEREFORE, AND FOR OTHER PURPOSES
Section 1. Short Title. — This Act shall be known and cited
as the "Charter of the Cebu Port Authority."
Sec. 2. Declaration of Policy. — It is the
declared policy of the Senate to promote the establishment and growth
of autonomous regional port bodies to procedure an efficient, safe,
economical and coordinated system of movement of goods and persons
through the port, consistent with the constitutional mandate to give
all regions of the country of sum opportunity to develop.
Sec. 3. Creation of the Port Authority. — There is
hereby created public-benefit corporation to be known as the Cebu Port
Authority, hereinafter referred to as the Authority.
This Authority shall be under supervision of the Department of
Transportation and Communications for purposes of policy coordination.
Sec. 4. Definition of Terms. — For purposes of
this Act, unless the context indicates otherwise, the terms used herein
shall mean as follows:
(a) "Port facility" shall include wharves, piers,
slips, docks, bulkheads, basins, warehouses, cold storage, loading and
unloading equipment, and passenger terminals and accessories;
(b) "Transportation facility" includes passenger and
cargo boats, ferry boats, tugs, barges, scows, harbor craft of any
kind, and any other kind of facility now in use or hereafter designated
for use of the transportation or carriage of persons of goods;
(c) "Navigable waters" means all navigable portions
of the seas, estuaries and inland waterways;
(d) "Wharf" means a continuous structure built
parallel to or long the margin of the sea or alongside riverbanks,
canals or other waterways where vessels may lie alongside to receive
and discharge cargo or passenger, or lie at rest;
(e) "Pier" includes any stage, stair, landing stage,
jetty, floating barge or pontoon, and any bridge or other works
connected therewith;
(f) "Dock" includes locks, cuts, entrances, graving
docks, inclined planes, slipways, quays and other works relative
thereto;
(g) "Bulkhead" means any structure serving to divide
land and water areas;
(h) "Basin" means any naturally or artificially
enclosed or nearly enclosed body of water in free communication with
the sea;
(i) "Warehouse" means any building for storage or
shed for cargo;
(j) "Lighter" means any large flat-bottomed boat or
barge used in transporting goods, or in loading or unloading of vessels
not lying alongside piers or wharves;
(k) "Anchorage" means any place with sufficient depth
of water where vessels anchor or may ride at anchor within the harbor;
(l) "Goods" includes wares and merchandise of every
description;
(m) "Rates" includes tolls, fees, dues and rent
imposed by the Authority;
(n) "Vehicle" includes any carriage traveling on its
own wheels or runners and used or intended to be used for the
conveyance or carrying of persons, animals or goods; and
(o) "Vessels" includes any ship, boat or any
waterborne craft used in the conveyance or carrying of persons animals
or goods.
Sec. 5. Purposes and Objectives. — The Authority
shall have the following purposes and objectives:
(a) To integrate and coordinate the planning,
development, construction and operations of ports and port facilities
within its territorial jurisdiction, consistent with the needs and
requirements of the region;
(b) To enhance the flow of international and domestic
commerce passing through or utilizing the regional ports; and
(c) To promote regional development by providing
support services to sustain the growth of export and other priority
industries in the region.
Sec. 6. Territorial Jurisdiction. — The
territorial jurisdiction of the Authority shall include all seas,
lakes, rivers and all other navigable inland waterways within the
Province of Cebu, including waterways within the Province of Cebu,
including the City of Cebu and all other highly urbanized cities which
may hereafter be created therein.
Sec. 7. Power. — The Authority shall have the
power and responsibility to:
(a) Have perpetual succession under its corporate
name until otherwise provided by law;
(b) Prescribe its bylaws and such rules and
regulations as may be found necessary to promote or enhance the
business of the Authority;
(c) Adopt and use a seal;
(d) Sue and sued in any court;
(e) Enter into contracts, transactions, and
undertakings of whatever nature, which are necessary or incidental to
its functions and objectives, with any natural or juridical persons or
with any government institutions, domestic or foreign;
(f) Acquire, own, hire, use, operate and dispose of
personal property and to acquire, own, use, lease, operate and dispose
of real property and interests thereon and to make improvements on such
real property, including the reclamation, for port purposes, of
foreshore and submerged lands within its territorial jurisdiction;
which reclaimed land shall ipso facto be deemed transferred in
ownership to the Authority; and to center into contracts with any
public or private entity for such reclamation under such terms and
conditions as it may deem to be for the public interest;
(g) Purchase, hold alienate, mortgage, pledge or
otherwise dispose of the shares of the capital stock of, or any bond,
security or other evidences or indebtedness created by other
corporations or co-partnership of this or any other country, and while
the owner of said stock, to exercise all the rights of ownership,
including the right to vote thereon;
(h) Exercise the right of eminent domain;
(i) Exercise all other powers not contrary to law
which may be necessary or incidental to the effectuation of is
authorized purposes or to the exercise of any of the foregoing powers,
except the power to levy taxes assessments and, in general, to exercise
in connection with property within its control to all powers which may
be exercised by a natural or juridical person over its property and
affairs;
(j) Levy dues and impose rates and charges for the
use of the premises, works, appliances, facilities or for services
provided by or belonging to the Authority, or any other organization
concerned with port operations;
(k) Make expenditure in foreign countries to pay
commissions and hire or contract experts and consultants, both foreign
and local;
(l) Make expenditures for promotion of the business
affairs of the Authority; and
(m) Exercise all the powers of a corporation under
the Corporation Law insofar as they are not inconsistent with the
provisions of this Act.
Sec. 8. Governing Body. — The powers and functions
of the Authority shall be vested in and exercised by a Cebu Port
Commission composed of a Chairman, a Vice-Chairman and five (5) other
Commissioners. The Chairman shall be the Secretary of the Department of
Transportation and Communications or his duly designated
undersecretary. The Vice-Chairman, who shall be designated as the Cebu
Port General Manager, shall be elected by the Commissioners from among
themselves.
The Commissioners shall be appointed by the President of the
Philippines and shall represent the following sector:
(a) Shipowners and shipping operators;
(b) Cargo-handling labor sector; and
(c) Business sector.
Sec. 9. Powers and Functions of the Commission. —
The powers and functions of the Cebu Port Commission shall be as
follows:
(a) To manage, administer, operate, maintain, improve
and develop, coordinate and otherwise govern the activities of all the
ports within its territorial jurisdiction;
(b) To investigate, prepare, adopt, implement and
execute a comprehensive and orderly plan for the overall development of
all ports within its territorial jurisdiction, and to update such
plans, as may be warranted from time to time;
(c) To raise revenues for the Authority through fees,
tolls, charges, rentals and the like for the use of any property,
equipment or facility owned or controlled by it;
(d) To raise and administer, together with such
revenues as may by law accrue to the Authority, capital outlays by
means of loans from or foreign financial institution to finance its
projects;
(e) To determine by survey and establish by
engineering design the exact location, system and character of any and
all port facilities which it may own, construct, establish, effectuate,
operate or control;
(f) To provide and maintain port facilities
including accessory buildings and installations within its territorial
jurisdiction on its own through the private sector;
(g) To prescribe and enforce rules and regulations on
the use wharves, piers and anchorages by ships and other watercraft; t
(h) To determine the organization of the Authority
and create such functional units therein as it may deem necessary in
the proper and efficient implementation of the functions and purposes
of the Authority, including the appointment of officials and employees,
it being understood that the security of tenure of these workers shall
be respected consistent with existing laws;
(i) To define the duties and fix the compensation and
benefits of the General Manager, Deputy General Manager, Port Managers,
and other officers of the Authority, in accordance with the rules and
regulations of the Civil Service Commission and the Department of
Budget and Management;
(j) To approve the annual budget of the Authority
and/or such supplemental budgets thereof as may be submitted by the
General Manager from time to time; and
(k) To perform such other duties as may be necessary
and convenient for the attainment of the objectives of the Authority.
SECTION 10. Term of Office. — The members of the Cebu
Port Commission shall be appointed for a term of three (3) years:
provided, that any person appointed to fill a vacancy shall hold office
only for the unexpired term of the Commissioner whom be succeeds.
SECTION 11. Quorum, Per Diems and Allowances. — Four
(4) members of the Commission shall constitute a quorum for the
transaction of business.
Unless otherwise fixed by the Commission, the Chairman and all the
members shall each receive a per diem of Two thousand pesos (P2,000),
exclusive of traveling expenses, for each day of meeting of the
Commission, which shall not exceed four (4) meetings a month.
SECTION 12. General Manager. — The management of the
day- to-day business and operations of the Authority shall be under the
direction and control of the General Manager. He shall have the
following powers and duties:
(a) To manage, direct and supervise the operations
and internal administration of the Authority, subject to the control
and supervision of the Commission;
(b) To prepare all memoranda pertaining to each and
every item in the agenda for the meetings of the Commission and to
submit for the consideration thereof such proposals or recommendations
which he believes to be necessary to carry out effectively and
beneficially the business of the Authority;
(c) To implement the policies and administer the
measures approved by the Commission;
(d) To devise the executive organization pattern of
the Authority, submit from time to time to the Commission the
corresponding organizational and functional charts, and enforce the
executive elements thereof;
(e) To appoint and employ the services of subordinate
officials and employees subject to the confirmation of the Commission;
(f) To prepare and submit to the Commission budget
proposals of all kinds; and
(g) To perform such other duties and exercise such
other powers as may be directed or authorized specially by the
Commission.
SECTION 13. Prohibition Against Conflict of Interest.
— No members of the Commission shall be financially interested,
directly or indirectly, in any contract entered into by the Authority
or in any special privilege granted by it. Violation of this
prohibition shall constitute a ground for dismissal.
SECTION 14. Application for Civil Service Laws. — All
officers and employees of the Authority shall be subject to the Civil
Service Commission and the Department of Budget and Management rules
and regulations, except those whose positions may, upon recommendation
of the Port Commission, be declared by the President of the Philippines
as policy determining, primarily confidential or highly technical in
nature.
SECTION 15. Supplies and Services Other Than
Personal. — All purchases or contracts for services, except for
personal services, entered into by the Authority shall be done only
after public bidding therefore is held: provided, that such bidding may
be required when an emergency, as explained and certified to by the
General Manager, requires immediate delivery of the supplies or
performance of the services and the unit costs or prices of such
emergency procurement do not exceed the latest costs or prices paid by
the Authority for the same or similar goods or services: provided,
further, that the General Manager shall report under oath to the
Commission the details of any such emergency procurement within two (2)
weeks after its consummation, including a statement of assurance that
the transaction constitutes the best arrangement possible under the
circumstances.
SECTION 16. Capitalization. — The Authority shall
have an authorized capital stock equal to and consisting of:
(a) The value of fixed assets, including port
facilities and equipment administered by or belonging to the Port of
Cebu and such other properties, movable and immovable, within the
territorial jurisdiction of the Authority as defined in Sec. 6
hereof, valued on the date of the effectivity of this Act; and
(b) Government contribution in such amount as may be
deemed an appropriate initial balance. Such initial amount, as approved
by the President of the Philippines, shall be more or less equivalent
to six (6) months working capital requirement of the Authority.
SECTION 17. Auditor and Personnel. — The Commission
on Audit shall appoint a representative who shall be the Auditor of the
Authority and the necessary personnel to assist said representative in
the performance of his duties. The operating expenses of the auditing
office and the salaries of both officials and employees shall be paid
by the Authority.
SECTION 18. Power to Issue Bonds. — The Authority, to
incur indebtedness or to issue bonds to carry out approved capital
investment projects, shall be approved by the affirmative vote of at
least four (4) of all members of the Commission is a special meeting
called for the purpose and approved by the President of the Philippines
upon the recommendation of the Secretary of Finance and the Central
Bank of the Philippines.
SECTION 19. Bond Limits. — The bonds that may be
issued by the Authority shall in no case exceed the total amount of One
billion pesos (P1,000,000,000): provided, that, no single issue shall
be made if at least seventy percent (70%) of the immediately preceding
issue is not yet sold.
The bonds shall be issued only in such amounts as will be needed at
only one (1) integral operation not exceeding one (1) year duration,
taking into account the state at which said bonds may be absorbed by
the buying public and the fund requirements of the project ready for
execution, and considering further a proper balance between productive
and non-productive projects so that inflation shall be held to a
minimum.
Sec. 20. Form, Rate of Interest, etc. of Bonds. —
The Secretary of Finance, in consultation with the Monetary Board,
shall prescribe the form, the rate of interest, the denominations,
maturities, negotiability, convertibility, call and redemption
features, and all other terms and conditions of issuances, placement,
sale, servicing, redemption and payment of all bonds issued under the
provisions of this Act.
The bonds issued by virtue of this Act shall be made payable both as to
principal and interest in Philippine currency and shall be acceptable
as security in any transaction with the Government in which such
security is required.
Sec. 21. Transfer of Existing Facilities and
Intangible Assets. — All existing facilities including wharves, piers,
slips, docks, bulkheads, cargo terminals, warehouses, cold storage,
loading and unloading equipment, and passenger terminals and
accessories, within the territorial jurisdiction of the Authority;
other lands, buildings and other properties, movable or immovable,
belonging to or presently administered by the Philippine Ports
Authority; and all assets, powers, rights, interests and privileges
relating to port works or operations, including all equipment, are
hereby transferred to the Authority.
Sec. 22. Projects in Progress. — All ongoing
projects relating to the rehabilitation and/or construction of port
facilities and supply of equipment shall be administered and undertaken
by the Authority.
Sec. 23. Transfer of Liabilities and Debts. — Upon
the transfer to and acceptance by the Authority of the existing
physical facilities, intangible assets and completed projects referred
to in the preceding sections, all debts, liabilities and obligations of
the Philippine Ports Authority in respect of such physical facilities,
tangible assets and completed projects within the ports shall likewise
be assumed by the Authority.
Sec. 24. Abolition of the Port Management Office
of Cebu as a Port Management Unit of the Philippine Ports Authority. —
The Port Management Office of Cebu is hereby abolished. The General
Manager of the Authority shall ensure the smooth transfer of
responsibility from the abolished entity to the Authority as well as
the determination of personnel to be retained: provided, that all
officials and employees whose services are terminated shall, if not
eligible for retirement, be given gratuities equivalent to one (1)
month salary for every year of continuous satisfactory service on the
basis of the highest salary received in addition to other benefits
accorded to them by existing laws.
Sec. 25. Annual Report. — An annual report of the
Authority shall be submitted to the President of the Philippines within
sixty (60) days after the close of each fiscal year.
The original of said report shall be submitted to the President of the
Philippines and copies thereof to the House of Representatives and the
Senate of the Philippines and the Department of Transportation and
Communications. The report shall include a financial statement duly
certified by the Auditor of the Authority.
Sec. 26. Appropriation. — The amount necessary to
carry out the provisions of this Act shall be included in the General
Appropriations Act of the year following its enactment into law and
thereafter.
Sec. 27. Separability Clause. — If any provision
of this Act or the application of such provision to any person or
circumstance is declared unconstitutional, the remainder of this Act or
the application of such provision to other persons or circumstances
shall not be affected by such declaration.
Sec. 28. Repealing Clause. — All acts, charters,
executive orders, administrative orders, rules and regulations, or
parts thereof, in conflict with this Act hereby repealed or modified
accordingly.
Sec. 29. Effectivity Clause. — This Act shall take
effect fifteen (15) days after its publication in at least two (2)
national newspapers of general circulation.
Approved: June 26, 1992
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