WHEREAS, harbors and the tributary areas have their own peculiar potentialities to be considered in port development;
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;
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;
WHEREAS, there is need to integrate and coordinate port development at the national level and at the same time promote the growth of autonomous regional port development bodies responsive to the needs of their individual localities;
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;
SECTION 1. Title. — This Decree shall be known as the Philippine Port Authority Decree of 1974.
SEC. 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 ports 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 fruitful 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:
A. THE PHILIPPINE PORT AUTHORITY
SEC. 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, hereinafter 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 establish branches and agencies within the Philippines as may be deemed necessary by the Council.
SEC. 4. Philippine Port Development Program. — The Authority, in coordination with other 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.
B. PHILIPPINE PORT AUTHORITY COUNCIL
SEC. 5. Powers and Functions of the Council. — The Philippine Port Authority Council shall have the following powers, functions and duties, among others:
SEC. 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, the 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 or Committee thereof actually attended: Provided, That the total allowable amount of per diems each month shall not exceed five hundred pesos.
C. MANAGEMENT
SEC. 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.
SEC. 8. Appointment, Tenure, Qualifications and Compensation. — The General Manager and the two Assistant General Managers shall be appointed 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 port administration. Until otherwise fixed by the Council, their annual salaries and allowances shall be as follows:
General ManagerAnnual Salary P50.000.00Monthly Commutable Allowance 2,000.00 Assistant General ManagerAnnual Salary P40,000.00Monthly Commutable Allowance 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 Managers shall be directly responsible to the General Manager, and their respective powers, functions and duties shall be determined by the Council, upon recommendation of the General Manager.
SEC. 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:
D. INDIVIDUAL, AUTONOMOUS PORT/INDUSTRIAL ZONE AUTHORITIES
SEC. 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:
E. REORGANIZATIONAL CHANGES
SEC. 11. Reorganizational Changes. — In view of the re-organizational 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 of responsibilities relative to the effective implementation of this Decree.
The composition of the Committee shall be as follows:
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:
The Committee's operational expenses shall be funded from the Pork Works Special Fund.
F. MISCELLANEOUS PROVISIONS
SEC. 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 any deficiency in annual appropriations and to finance its other projects.
SEC. 13. Power to 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.
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.
SEC. 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.
SEC. 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 functions 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.
(Sgd.) |
FERDINAND E. MARCOS | ||||||
President of the Philippines | |||||||
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By the President: | ||||||
(Sgd.) |
ALEJANDRO MELCHOR | ||||||
Executive Secretary |