MARITIME WATCHKEEPER

The House of Representatives conducted An Inquiry In Aid of Legislation On the Philippine Ports Authority and submitted its report to the Office of the President on March 17, 2007.  The recommendations contained in the said report are:
Recommendations
The Constitution itself recognizes the detrimental effects of monopolies and the indispensable role of the private sector in the development of the national economy. Fiscal constraints and the existing monopoly in the provision of port services have contributed to the dismal state of the country’s port infrastructure facilities.
Cognizant of such limitations, the Government has adopted a policy of de­monopolization and greater private sector investments in port facilities and equipment – to minimize unnecessary capital expenditure by Government as well as to encourage competition and increased efficiency in port operations and the provision of port services.
The actuations of PPA, therefore are in violation of the existing policies on open competition and have undermined the country’s global competitiveness. To correct this malady, the Committee therefore recommends the following actions:

1. Amend the charter of the PPA by
   •   Separating its development and regulatory functions
   •   Deleting the provision that allows PPA to share from cargo handing revenues
2. Pass a House Resolution requesting the President to
   •   Order the PPA to institutionalize and allow competition in port operations — foreign and international cargo which will redound to greater efficiency in the shipping industry and economic gains for the country.
   •    Disapprove/revoke the PPA recommendation to extend for another 25 years the contract of ICTSI which is due to expire on 2013
   •   Order the OGCC to look into the violations on the existing contract between PPA and ICTSI
   

To read the complete report, click here.
Also, letter of transmittal to the President, click here.

Annexes:

•    Privilege speech of Rep, Eduardo C. Zialcita on November 8, 2004 entitled “Where there is smoke, there is fire“.
•    Supplemental Contract to the PPA-ATI Contract for Cargo Handling Services dated 13 March 1992
•    PPA-ICTSI Contract for Cargo Handling Services dated January 1998 OGCC (Office of the Government Corporate Counsel) Opinion No: 207 s.2003
•    PPA Memorandum Circular No. 41-2002 Guidelines for Adopting a Universal Government Share of 10% for domestic cargoes and 20% for foreign cargoes from the revenue of cargo handling operators nationwide (November 5, 2002)

 

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