The Philippine Ports Authority (PPA) has issued new omnibus rules of procedure on handling applications for new tariff or adjustment of fees and charges initiated by private service providers at ports. Specifically, the rules provide the timelines for the evaluation and approval of these applications.
The new rules are contained in PPA Administrative Order (AO) No. 11-2019, which took effect on December 25 and governs the procedures on private service provider-initiated applications for new tariff and/or adjustment of fees for various port services.
The types of fees covered include cargo-handling charges, line handling fees, passenger terminal fees, pilotage fees, porterage fees, waste reception fees, and weighbridge fees.
The new rules will be “liberally construed to facilitate just, expeditious, and inexpensive determination of every related proceeding or matters before the Authority,” AO 11-2019 states.
It adds that in any application proceedings under AO 11-2019, “the judicial rules of evidence is [sic] not controlling.”
“It is spirit and intention of these rules to ascertain the facts in each case by every and all reasonable means without regard to technicalities of law or procedure,” AO 11-2019 states.
Under the new rules, private service providers must comply with certain criteria to be eligible for adjustment of port fees and charges or for setting of new tariff.
For all service providers, the criteria should include the following: being duly authorized/accredited service providers by PPA; holders of a valid and existing contract and/or permit; no pending case filed against PPA, its Board, technical working group, or any of its offices; no outstanding obligation due to PPA; and audited financial statements and sworn statement of revenue.
For tariff adjustment, except as provided in the contract, there should be no increase granted to the service provider in the last three years, and the consumer price index (CPI, All Items, Philippines) has increased by at least 5%, to be reckoned three years from effectivity of the new contract, and three years from the effectivity of the last increase granted for an existing/extension contract.
For a new tariff, the application has to be filed as the need arises, subject to the evaluation and approval of PPA after being presented proof of existence and necessity of the service by the private service provider.
Cargo-handling operators must also submit monthly cargo-handling compliance report and engineering and operational reports as required in the contract. Furthermore, cargo-handling and passenger terminal building operators should have fully complied with contractual commitments.
Application documents should be initially evaluated and endorsed to the Commercial Service Department (CSD) within three working days, and the concerned port management office (PMO) should notify the proponent of the start of the validation and evaluation of the application.
After receiving the application from the CSD, the Office of the Corporate Board Secretary will, within two working days, prepare the PPA special order creating a hearing panel for the conduct of a public hearing.
The hearing panel will be composed of the technical assistants of the members of the PPA Board of Directors representing the Department of Transportation, Maritime Industry Authority, Department of Public Works and Highways, Department of Environment and Natural Resources, Department of Trade and Industry, Department of Finance, National Economic and Development Authority, Office of the Government Corporate Council, and the private sector.
The concerned PMO must also provide a Secretariat to the hearing panel for the holding of the public hearing.
The PPA Board Technical Working Group (TWG) will schedule the public hearing while the concerned PMO should post and send the notices/invitations for public hearing through letters, electronic mail, facsimile, and other acceptable means, at least 10 working days before the scheduled public hearing.
After the public hearing, the proponent and all attendees will be given another opportunity to present their views, and participants should submit their position in writing within five working days from the public hearing.
The PPA Board TWG, on receiving the complete documentation and report from the concerned PMO, should convene for the final evaluation of the application, and should submit a report, including its recommendations, to the PPA Board within five working days.
In determining the appropriate new tariff or rate adjustment, the methodology to be used will be the formula prescribed by PPA.
Upon effectivity of AO 11-2019, all private service provider-initiated applications to adjust fees and charges or proposals for new tariff, including applications presently being processed or reviewed but not yet approved by the PPA Board, will be processed or reviewed in accordance with AO 11-2019. – Roumina Pablo
