PPA to grant holdover authority to LGUs for continued services

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PPA to grant holdover authority to LGUs for continued services
  • The Philippine Ports Authority will issue holdover authority to local government units with expiring or expired agreements for the provision of cargo handling and other related services at PPA ports
  • The HOA will ensure continuous provision of services in PPA ports temporarily transferred to LGUs
  • The HOA will be issued pending renewal of the LGUs’ MOA with the PPA
  • It will be valid for one year or until the PPA has entered into a new MOA with the LGU

The Philippine Ports Authority (PPA) will issue holdover authority (HOA) to local government units with expiring or expired agreements for the provision of cargo handling and other related services at PPA ports.

The HOA ensures continuous provision of their services in PPA ports that are temporarily transferred to them.

The HOA will be issued pending renewal of the LGUs’ MOA with the PPA, the ports authority said under PPA Administrative Order (AO) No. 001-2024 published on February 14.

The issuance of the HOA is in consonance with PPA AO 08-2020, or the revised guidelines on the transfer of the management and operation of PPA ports to LGUs, and pursuant to PPA Board Resolution No. 3270 dated February 6, 2024.

The PPA in certain cases may temporarily transfer the management and operation of a port to the LGU where it is located, subject to guidelines under AO 08-2020.

The HOA will be issued subject to compliance with certain conditions, which include the LGU having no outstanding financial obligation with the PPA, and with no pending case against the ports body.

The PPA, through its Internal Audit Department, will exercise visitorial powers and conduct performance evaluation review for the renewal of MOAs with all LGUs with expiring or expired agreement on the provision of cargo handling and other related services at PPA ports.

The HOA will be valid for one year or until the PPA has entered into a new MOA with the LGU in accordance with PPA AO 08-2020, whichever comes first, and unless sooner revoked or cancelled. – Roumina Pablo

READ: PPA grants holdover authority for expired contracts