EXECUTIVE ORDER NO. 212 November 28, 1994
ACCELERATING THE DEMONOPOLIZATION AND PRIVATIZATION PROGRAM FOR GOVERNMENT PORTS
IN THE COUNTRYWHEREAS, 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 Section 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 de-monopolization 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:
Sec. 1. De-monopolization Program. - The...
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Executive Orders
Accelerating the Demonopolization and Privatization Program For Government Ports In the Country
Executive Order No. 212
Summary of Executive Order No. 212
Demonopolization Program (Sec. 1):
- The Department of Transportation and Communications (DOTC) through the Philippine Ports Authority (PPA) shall accelerate the demonopolization and liberalization of all government ports.
- Allow and encourage competition in cargo handling and port services in every government port.
- Shipowners, operators, charterers or users shall have the option to contract the PPA-authorized cargo handler or port service contractor of their choice.
- The PPA shall:
a. Respect existing cargo handling or port service contracts but not renew them upon expiration, including those with renewal option. (Sec. 1a)
b. Award non-exclusive multi-year contracts through competitive public bidding, with sufficient duration for reasonable return on investments. (Sec. 1b)
c. Allow participation of cooperatives as cargo handling or port service contractors in ports where manual labor is predominantly employed due to low volumes or nature of cargo. (Sec. 1c)
Privatization Program (Sec. 2):
- The DOTC, through the PPA, shall encourage and expand private sector participation in operation, maintenance and development of all government ports through:
a. Capital leases to allow private sector to operate, maintain and develop port facilities and charge appropriate rates. (Sec. 2a)
b. Cargo licenses to private companies for cargo handling services in ports which cannot be considered for capital leases for strategic and economic reasons, with deregulated tariffs based on negotiations. (Sec. 2b)
c. Service contracts to private companies with expertise to carry out dredging, port security, and other services. (Sec. 2c)
d. Tariff review to eliminate charges on private ports and promote private sector investment in developing other private ports. (Sec. 2d)
- The DOTC, through the PPA, shall ensure the government realizes a reasonable return on its investments.
National Port Transport Plan (Sec. 3):
- The DOTC shall prepare a comprehensive National Port Transport Plan responsive to regional development needs and compatible with the Privatization Program, in coordination with NEDA and PPA.
- The plan shall integrate an intermodal transport network linking road, rail, sea and air transport systems.
- The plan shall be maintained on a 15-year cycle, with the initial plan submitted to the Office of the President within one (1) year from 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.
Cartels and Unfair Trade Practices (Sec. 4):
- The PPA shall ensure free access to ports for all sectors of the industry and no discrimination in provision and availment of services or contracts.
- There shall be no interlocking stockholders, directors, officers or common management between or among cargo handlers, port service contractors or other port-related companies operating in the same port or terminal facility.
- Circumstances indicating discriminatory behavior, cartel or similar arrangements, or unfair trade practices that defeat the objectives of this Executive Order shall be grounds for suspension or cancellation of any cargo handling or port service contract with the PPA.
Redundancy Provision (Sec. 5):
- 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.
- The PPA shall provide redundancy or separation benefits as authorized under existing laws.
- The PPA shall ensure the welfare and security of tenure of port workers in every port that is privatized.
Other Agencies Assistance (Sec. 6):
- All government departments, offices, agencies, government-owned or controlled corporations, including but not limited to DTI, DOF, DPWH, DENR, NEDA, Bureau of Customs and MARINA, are ordered to assist and coordinate with the DOTC and PPA in implementing this Executive Order.
Implementing Rules (Sec. 7):
- The PPA, with the approval of the DOTC, shall prepare the necessary rules and regulations to implement this Executive Order.
Repealing Clause (Sec. 8):
- This Executive Order repeals or amends all executive, department and other agency issuances or any provision thereof inconsistent with it.
Effectivity (Sec. 9):
- This Executive Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.
Demonopolization Program (Sec. 1):
- The Department of Transportation and Communications (DOTC) through the Philippine Ports Authority (PPA) shall accelerate the demonopolization and liberalization of all government ports.
- Allow and encourage competition in cargo handling and port services in every government port.
- Shipowners, operators, charterers or users shall have the option to contract the PPA-authorized cargo handler or port service contractor of their choice.
- The PPA shall:
a. Respect existing cargo handling or port service contracts but not renew them upon expiration, including those with renewal option. (Sec. 1a)
b. Award non-exclusive multi-year contracts through competitive public bidding, with sufficient duration for reasonable return on investments. (Sec. 1b)
c. Allow participation of cooperatives as cargo handling or port service contractors in ports where manual labor is predominantly employed due to low volumes or nature of cargo. (Sec. 1c)
Privatization Program (Sec. 2):
- The DOTC, through the PPA, shall encourage and expand private sector participation in operation, maintenance and development of all government ports through:
a. Capital leases to allow private sector to operate, maintain and develop port facilities and charge appropriate rates. (Sec. 2a)
b. Cargo licenses to private companies for cargo handling services in ports which cannot be considered for capital leases for strategic and economic reasons, with deregulated tariffs based on negotiations. (Sec. 2b)
c. Service contracts to private companies with expertise to carry out dredging, port security, and other services. (Sec. 2c)
d. Tariff review to eliminate charges on private ports and promote private sector investment in developing other private ports. (Sec. 2d)
- The DOTC, through the PPA, shall ensure the government realizes a reasonable return on its investments.
National Port Transport Plan (Sec. 3):
- The DOTC shall prepare a comprehensive National Port Transport Plan responsive to regional development needs and compatible with the Privatization Program, in coordination with NEDA and PPA.
- The plan shall integrate an intermodal transport network linking road, rail, sea and air transport systems.
- The plan shall be maintained on a 15-year cycle, with the initial plan submitted to the Office of the President within one (1) year from 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.
Cartels and Unfair Trade Practices (Sec. 4):
- The PPA shall ensure free access to ports for all sectors of the industry and no discrimination in provision and availment of services or contracts.
- There shall be no interlocking stockholders, directors, officers or common management between or among cargo handlers, port service contractors or other port-related companies operating in the same port or terminal facility.
- Circumstances indicating discriminatory behavior, cartel or similar arrangements, or unfair trade practices that defeat the objectives of this Executive Order shall be grounds for suspension or cancellation of any cargo handling or port service contract with the PPA.
Redundancy Provision (Sec. 5):
- 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.
- The PPA shall provide redundancy or separation benefits as authorized under existing laws.
- The PPA shall ensure the welfare and security of tenure of port workers in every port that is privatized.
Other Agencies Assistance (Sec. 6):
- All government departments, offices, agencies, government-owned or controlled corporations, including but not limited to DTI, DOF, DPWH, DENR, NEDA, Bureau of Customs and MARINA, are ordered to assist and coordinate with the DOTC and PPA in implementing this Executive Order.
Implementing Rules (Sec. 7):
- The PPA, with the approval of the DOTC, shall prepare the necessary rules and regulations to implement this Executive Order.
Repealing Clause (Sec. 8):
- This Executive Order repeals or amends all executive, department and other agency issuances or any provision thereof inconsistent with it.
Effectivity (Sec. 9):
- This Executive Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.