The Philippine Ports Authority (PPA) is once again issuing a hold over authority (HOA) to cargo-handling operators with expiring contracts or those with already an HOA to ensure cargo-handling services at ports continue without interruption.
PPA general manager Atty. Jay Daniel Santiago, in PPA Administrative Order (AO) No. 01-2019, said the issuance of the HOA is pursuant to PPA Board Resolution No. 2785. PPA since last year has been issuing or extending the HOAs of cargo-handling operators with expiring contracts or HOAs pending implementation of PPA AO 12-2018.
AO 01-2019 took effect on March 6. The HOA is valid until December 31, 2019 or until a new contract has been awarded in accordance with PPA AO No. 12-2018, whichever is earlier, unless otherwise revoked.
PPA AO 12-2018 order provides guidelines for the selection and award of contract under the Port Terminal Management Regulatory Framework (PTMRF), the framework that outlines the new rules for terminal management contract.
Under AO 01-2019, cargo-handling service providers have to file their letter of intent for the issuance of the HOA two months before their cargo-handling contract or their HOA expires.
The HOA shall only be issued upon compliance with certain conditions, such as that the cargo-handling operator has no outstanding financial obligation with PPA and no pending case against the port authority. The cargo-handling operator must also have submitted an updated Portworkers Retirement and Separation Fund, and complied with the requirements of the Social Security System, PhilHealth, and Department of Labor and Employment, among others.
Under AO 01-2019, the PPA general manager is the signatory of the HOA to be issued.
