The Philippine Ports Authority (PPA) is once again granting or extending the hold over authorities (HOA) of cargo-handling/terminal operators for six months pending implementation this year of new guidelines on awarding of terminal contracts.
PPA general manager Atty. Jay Daniel Santiago, in PPA Administrative Order (AO) No. 09-2018 dated September 4, said all expiring HOAs issued to cargo-handling service providers pursuant to PPA AO 04-2018 will be valid for six months from the date of expiry of the previous HOA, or upon awarding of a new contact under the Port Terminal Management Regulatory Framework (PTMRF), whichever comes first.
PPA AO 09-2018, which took effect on September 8, adds that the general manager shall be the signatory of the HOA to be issued.
AO 04-2018, issued last February, granted or extended the HOA of cargo-handling/terminal operators for six months to make sure cargo-handling services are continuously provided pending implementation of PTMRF this year.
Embodied in PPA AO 03-2016, PTMRF outlines the guidelines on the awarding of terminal management contracts.
Under AO 03-2016, investments in ports are to be categorized in six tiers, ranging from a fully private concession to a fully PPA-managed port, to make 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.
According to AO 09-2018, the last day of filing/submission of the letter of intent for the issuance of HOA is September 30.
Cargo-handling operators who failed to file their applications last May 30 have until September 30 to re-apply for the issuance of the HOA, subject to compliance with certain conditions.
Conditions
Among these conditions are that 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 requirements of relevant government agencies such as Social Security System, Philippine Health Insurance Corporation, and Department of Labor and Employment.
It must also not have any pending case with PPA.
The HOA is 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, whichever is earlier, AO 09-2018 states.
Santiago earlier said PPA will start the bidding for port concessions under PTMRF this year. – Roumina Pablo
