The Philippine Ports Authority (PPA) will grant or extend the hold over authorities (HOA) of cargo-handling/terminal operators for six months pending implementation this year of its new guidelines for awarding terminal contracts.
PPA general manager Atty. Jay Daniel Santiago, in PPA Administrative Order (AO) No. 04-2018 dated February 22 and effective February 24 , said a HOA shall be issued to cargo-handling service providers with expired or expiring HOA or expiring cargo-handling contract in 2018.
The granting and extension of HOAs ensures sure cargo-handling services are continuously provided pending the implementation of PPA’s new port terminal management regulatory framework (PTMRF).
Embodied in PPA AO 03-2016, PTMRF outlines the guidelines for the awarding of terminal management contracts, in a bid to reduce the administrative burden of PPA.
Under AO 03-2016, investments in ports are to be categorized into six tiers, ranging from a fully private concession to a fully PPA-managed port, to makes it easier to determine the investment arrangements of a port.
Under the new port terminal framework, concessions will be performance- or outcome-based, instead of investment-based or based on the number of equipment or facilities to be provided by the concessionaire.
To be issued with an HOA, the cargo-handling operator must have no outstanding financial obligation with PPA, and has submitted an updated Portworkers Retirement and Separation Fund. The cargo-handling operator must also have complied with the requirements of concerned government agencies such as Social Security System, Philippine Health Insurance Corporation, and Department of Labor and Employment, among others.
The cargo-handling operator must also not have any pending case with PPA.
The HOA shall be valid for six months or until a new contract is awarded under the PPA Guidelines on the Selection and Award of Contract Under the PTMRF, AO 04-2018 states.
It adds that the general manager shall be the signatory of the HOA to be issued.
Santiago earlier said PPA will start this year the bidding for port concessions under PTMRF. – Roumina Pablo
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