MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 634 January 7, 1975
GRANTING THE MANILA INTERNATIONAL PORT TERMINALS, INC. A FRANCHISE TO CONSTRUCT, OPERATE AND MAINTAIN FLOATING BONDED WAREHOUSES AND COLD STORAGE FACILITIES IN THE MANILA BAY AND OTHER NAVIGABLE WATERS IN THE VICINITY, AND REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 4138, AS AMENDED
WHEREAS, Republic Act No. 4138, as amended, granted the San Luis Warehousing Corporation a franchise to construct, maintain and operate floating bonded warehouses and cold storage facilities in the Manila Bay and other navigable waters in the vicinity and providing guidelines for its operations;
WHEREAS, the years have since elapsed and nothing has been achieved by said corporation towards the fulfillment of its obligations under said Act;
WHEREAS, recent worldwide economic trends and developments have proven that it is indispensable to have modern port facilities to ensure an efficient and less expensive system for the crating, hauling and transportation of bulk cargoes, goods and merchandises; and
WHEREAS, the demand of continued economic growth and development of the...
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Presidential Decrees
Granting The Manila International Port Terminals, Inc. A Franchise To Construct, Operate And Maintain Floating Bonded Warehouses And Cold Storage Facilities In The Manila Bay And Other Navi
Presidential Decree No. 634
Summary of Presidential Decree No. 634
Repeal of Republic Act No. 4138 and Grant of Franchise
- Section 1: Repeals Republic Act No. 4138, which granted the San Luis Warehousing Corporation a franchise to construct and operate floating bonded warehouses and cold storage facilities in Manila Bay.
- Section 2: Grants the Manila International Port Terminals, Inc. (MIPT) a 25-year franchise, renewable for another 25 years, to construct, operate, and maintain modern container terminals, bonded warehouses, storage depots, cold and refrigerated storage, cargo and transit sheds, conveyor piers, docks, landing and berthing facilities, access roads, bridges, seawalls, bulkheads, and fillings in the North Harbor area of Manila Bay, covering approximately 375.34 hectares. • MIPT is authorized to charge and collect rates and fees for the use of these facilities, subject to the approval of the Secretary of Finance.
Facilities and Equipment Requirements
- Section 3: All containerization handling systems, apparatus, equipment, berthing, shipping, and storage facilities installed and used by MIPT shall be modern and comparable to similar facilities abroad.
Liability and Indemnification
- Section 4: MIPT shall hold the national and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents, injuries, and damages caused by the construction or operation of its facilities.
Construction and Expansion
- Section 5: The Secretary of Public Works, Transportation, and Communications shall have the authority to permit the construction of MIPT's facilities based on approved plans and specifications, and under prescribed terms and conditions. • The defined area may be expanded or new areas added, conformably with approved plans and technical studies designed to promote port and harbor development in the Manila Bay area.
Transfer and Assignment
- Section 6: MIPT shall not lease, transfer, grant usufruct, sell, or assign this franchise or the rights and privileges granted thereunder to any person, firm, company, corporation, or other commercial or legal entity, nor merge with any other entity organized for the same purpose, without the prior approval of the President of the Philippines. • Any entity to which the franchise is sold, transferred, or assigned shall be subject to all conditions, terms, restrictions, and limitations of this franchise. • Subject to terms and conditions prescribed by the Secretary of Finance, MIPT may lease or sublease the improvements it has made or mortgage them to raise capital for further improvements.
Taxes and Customs Duties
- Section 7: MIPT shall be liable to pay the same taxes on its real estate, buildings, improvements, and personal property, exclusive of the franchise, as other persons or corporations are required by law to pay. • However, capital goods, machineries, equipment, and materials brought into the country by MIPT exclusively for the construction or operation of its facilities shall be free from customs duties and taxes.
Preemptive Right upon Expiration
- Section 8: Upon expiration of the prescribed period, should the Government sell or lease the improvements made by MIPT, or have its operations and management conducted by other parties, MIPT shall have the preferred and preemptive right to equal the best bid or offer.
Repeal and Modification of Inconsistent Laws
- Section 9: All laws, decrees, rules, and regulations inconsistent with this Decree are hereby repealed and/or modified accordingly.
Effectivity
- Section 10: This Decree shall take effect immediately.
Repeal of Republic Act No. 4138 and Grant of Franchise
- Section 1: Repeals Republic Act No. 4138, which granted the San Luis Warehousing Corporation a franchise to construct and operate floating bonded warehouses and cold storage facilities in Manila Bay.
- Section 2: Grants the Manila International Port Terminals, Inc. (MIPT) a 25-year franchise, renewable for another 25 years, to construct, operate, and maintain modern container terminals, bonded warehouses, storage depots, cold and refrigerated storage, cargo and transit sheds, conveyor piers, docks, landing and berthing facilities, access roads, bridges, seawalls, bulkheads, and fillings in the North Harbor area of Manila Bay, covering approximately 375.34 hectares. • MIPT is authorized to charge and collect rates and fees for the use of these facilities, subject to the approval of the Secretary of Finance.
Facilities and Equipment Requirements
- Section 3: All containerization handling systems, apparatus, equipment, berthing, shipping, and storage facilities installed and used by MIPT shall be modern and comparable to similar facilities abroad.
Liability and Indemnification
- Section 4: MIPT shall hold the national and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents, injuries, and damages caused by the construction or operation of its facilities.
Construction and Expansion
- Section 5: The Secretary of Public Works, Transportation, and Communications shall have the authority to permit the construction of MIPT's facilities based on approved plans and specifications, and under prescribed terms and conditions. • The defined area may be expanded or new areas added, conformably with approved plans and technical studies designed to promote port and harbor development in the Manila Bay area.
Transfer and Assignment
- Section 6: MIPT shall not lease, transfer, grant usufruct, sell, or assign this franchise or the rights and privileges granted thereunder to any person, firm, company, corporation, or other commercial or legal entity, nor merge with any other entity organized for the same purpose, without the prior approval of the President of the Philippines. • Any entity to which the franchise is sold, transferred, or assigned shall be subject to all conditions, terms, restrictions, and limitations of this franchise. • Subject to terms and conditions prescribed by the Secretary of Finance, MIPT may lease or sublease the improvements it has made or mortgage them to raise capital for further improvements.
Taxes and Customs Duties
- Section 7: MIPT shall be liable to pay the same taxes on its real estate, buildings, improvements, and personal property, exclusive of the franchise, as other persons or corporations are required by law to pay. • However, capital goods, machineries, equipment, and materials brought into the country by MIPT exclusively for the construction or operation of its facilities shall be free from customs duties and taxes.
Preemptive Right upon Expiration
- Section 8: Upon expiration of the prescribed period, should the Government sell or lease the improvements made by MIPT, or have its operations and management conducted by other parties, MIPT shall have the preferred and preemptive right to equal the best bid or offer.
Repeal and Modification of Inconsistent Laws
- Section 9: All laws, decrees, rules, and regulations inconsistent with this Decree are hereby repealed and/or modified accordingly.
Effectivity
- Section 10: This Decree shall take effect immediately.