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The Philippine Ports Authority will issue holdover authority to certain operators and service providers with contracts that have expired
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This ensures continuous provision of services of cargo-handling operators, passenger terminal building operators, and Ro-Ro service providers in PPA ports
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The holdover authority extends to local government units with expiring or expired agreements with PPA
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The HOA is valid from January 1 for one year or until a new operator has been selected or a new MOA with an LGU has been signed
The Philippine Ports Authority (PPA) will issue holdover authority (HOA) to certain operators and service providers with expired contracts to ensure continuous provision of their services in PPA ports.
These include cargo-handling operators, passenger terminal building (PTB) operators, and roll-on/roll-off (Ro-Ro) service providers.
The HOA also extends to local government units (LGUs) with expiring or expired memorandum of agreement (MOA).
Cargo-handling operators, PTB operators, and Ro-Ro service providers should file their letter of intent for the issuance of HOA two months prior to its expiration, according to PPA Administrative Order (AO) No. 003-2025 dated February 17 and published in a newspaper on February 20.
The issuance of the HOA will be subject to compliance with certain conditions. Among these are that the cargo-handling operator, PTB operator, or Ro-Ro service provider has no outstanding financial obligation with PPA.
They 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.
They must also not have any pending case against PPA and have a valid accreditation certificate.
Additionally for cargo-handling operators, they must also have submitted an updated portworkers retirement and separation fund.
The HOA will be valid from January 1, 2025 for a period of one year or until PPA has issued a new contract and notice to proceed to a new operator in accordance with PPA AO 12-2018, whichever is earlier, unless otherwise revoked. AO 12-2018 provides PPA’s guidelines for the selection and award of contract for ports under its Port Terminal Management Regulatory Framework (PTMRF).
PPA since 2020 has been bidding out port terminal management contracts under PTMRF for various ports.
READ: PPA eyes bidding for GenSan port, others by Q1 2025
PPA, through its Internal Audit Department (IAD), will exercise its oversight power and conduct performance evaluation of all operations with application for HOA renewal, AO 003-2025 noted.
READ: PPA grants holdover authority for expired contracts
As for LGUs, the HOA will be issued pending the renewal of the LGUs’ MOA with PPA, the ports authority said in PPA AO No. 002-2025 published on February 20.
READ: PPA to grant holdover authority to LGUs for continued services
The issuance of 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.
PPA in certain cases may temporarily transfer the management and operation of its port to the LGU where it is located, subject to guidelines under AO 08-2020.
The HOA will be issued to subject to compliance with certain conditions, which include the LGU having no outstanding financial obligation with PPA, and has no pending case against PPA.
PPA, through its IAD, will also exercise its visitorial powers and conduct a performance evaluation review for all LGUs with application for MOA renewal.
The HOA will be valid from January 1, 2025 for one year or until PPA has entered into a new MOA with the LGU in accordance with PPA AO 08-2020, whichever comes first, unless sooner revoked or cancelled.
If an LGU did not apply for MOA renewal or failed to comply with the renewal requirements, PPA will take over the operations and facilities of the port through a special takeover unit.
The PPA general manager should be the signatory to the HOA that will be issued to the operators and LGUs that applied for renewal.
PPA for years has been extending the HOAs of port service providers that have expired before a new contract has been made to ensure continuous provision of services at ports. PPA also creates special takeover units to take over the operation of ports when necessary, such as when the existing cargo-handling operator’s contract has expired and no operator has been selected yet. – Roumina Pablo
