Republic of the Philippines RECEME:
HOUSE OF REPRESENTATIVES ECERY oa
Quezon City 03 AUG 2016

SEVENTEENTH CONGRE!
First Regular Session

House Bill No._&446) i;

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

The port of Tagbilaran is the main seaport in the island province of
Bohol. Travelers to and from Bohol uses the port as its main mode of entry,
more so than the airport. The port attends to more or less 5,000 passengers
daily on board fast crafts and regular ferries coming from Cebu, from Manila
and other cities and provinces in the south like Cagayan de Oro, Iligan,
Dipolog and Dumaguete. The Tagbilaran seaport also caters to cargo ships.
It has an average cargo handling capacity of 49,000 tons. It can
accommodate 10 to 20 footer vans with container traffic of 5,142 TEUs.

About 54 kilometers from Tagbilaran City, is the Tubigon seaport. It
has just been newly renovated with newly completed 2 RORO terminals.
There are several and regular shipping companies that service the port with
several vessels plying the Tubigon-Cebu City route. Being almost adjacent
to Cebu City, the port plays host solely to sea vessels plying the Tubigon-
Cebu City route. It is a major choice of travelers bound for Cebu and vice
versa because of its numerous boat schedules.

The third Bohol seaport is the Jagna Seaport. This seaport is
considered as the gateway portal to Mindanao. It was once the main hub of
maritime activities in Bohol. However, due to the upgrading of other ports of
Bohol, the volume of passengers dwindled. Lately however, the Jagna Port
was expanded. It is now part of the Strong Republic Nautical Highway
(SRNH) system conceptualized by the government to interconnect by land
and sea the island provinces of the country through RORO, cargo vessels,
ferry boats, and fast crafts.

And then, there are the smaller ports. One is Talibon that serves
travelers hailing from Cebu City. Also there is Ubay, which is a principal
gateway to Leyte, and those coming via bus trips that pass by the Mayon
Volcano, Sorsogon, crossing the sea on board a RORO boat to Samar, then


to San Juanico Bridge and to Leyte. The port of Loon, wherein RORO
vessels ply from Argao in Cebu. The port of Getafe, the nearest to Cebu
City, and where many large outrigger boats ply. The other ports include the
Asinan Port of Buenavista, the Daet River Quay and Inabanga Port in
Inabanga, and the port of Clarin, all primarily designed for smaller vessels
such as motorized bancas or outrigger boats and fishing boats.

These seaports are instrumental in enhancing investment opportunities
in the province. They are likewise the keys to agro-industrial development
and the flourishing of trade and commerce.

But most important, the ports are very important in promoting Bohol
as a tourist destination. The province has consistently been in the top ten
tourist destinations in the Philippines. As a primary eco-cultural tourism
destination, the entire Island Province of Bohol, by virtue of Republic Act
No. 9446, has been declared as a national tourism zone.

In order to further the progress of the local economy, to enhance its
promotion as a tourist destination, and over all, to advance the development
and welfare of the Boholanos, there is a need to drastically alter the systems
and management of sea ports of the province. There is a need to establish an
autonomous provincial port body similar to that in progressive Cebu
Province.

Under this proposed measure, the Bohol Ports Authority is being
created. This Authority shall be separated from the Philippine Ports
Authority (PPA). It shall be independent in administering and managing all
the facilities of the ports.

A Bohol Port Commission shall be established. It is to be composed
of the Secretary of the Department of Transportation and Communication
(DOTC) who shall be the Chairman, the Provincial Governor who shall be
the Vice-Chairman, and five (5) Commissioners who shall elect among
themselves the General Manager.

The Commissioners, who to be are appointed by the President of the
Philippines, shall represent the ship-owners and shipping operators, cargo-
handling labor sector and business sector. On the other hand, the General
Manager shall direct and control the management of the day-to-day business
and operations of the Ports.

With the passage of this bill, Bohol Province shall not be enjoy
tourism growth, it shall also enjoy a robust economy and progressive
society.


It is in this view that the immediate passage of the bill, filed by the
undersigned in the Sixteenth Congress as House Bill No. 416, is earnestly

sought. —

ARTHUR C. YAP
Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._ 2446

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT
CREATING THE BOHOL PORTS AUTHORITY,
DEFINING ITS POWERS AND _ FUNCTIONS,
PROVIDING APPROPRIATIONS THEREFOR, AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled.

SECTION 1. Short Title. — This Act shall be known and cited
as the "Charter of the Bohol Ports Authority."

SECTION 2. Declaration of Policy. — It is the declared policy
of the State to promote the establishment and growth of autonomous
provincial port bodies to produce an efficient, safe, economical and
coordinated system of movement of goods and persons through the port,
consistent with the constitutional mandate to give all provinces of the
country optimum opportunity to develop.

SECTION 3. Creation of the Port Authority. — There is
hereby created public-benefit corporation to be known as the Bohol Ports

Authority, hereinafter referred to as the Authority.


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This Authority shall be under the supervision of the Department of
Transportation and Communications for purposes of policy coordination.

SECTION 4. _ Definition of Terms. — For purposes of this Act,
unless the context indicates otherwise, the terms used herein shall mean as
follows:

(a) "Port facility" shall include wharves, piers, slips, docks,
bulkheads, basins, warehouses, cold storage, loading and unloading
equipment, and passenger terminals and accessories;

(b) "Transportation facility" includes passenger and cargo boats,
ferry boats, tugs, barges, scows, harbor craft of any kind, and any other kind
of facility now in use or hereafter designated for use of the transportation or
carriage of persons of goods;

(c) "Navigable waters" means all navigable portions of the seas,
estuaries and inland waterways;

(d) "Wharf" means a continuous structure built parallel to or along
the margin of the sea or alongside riverbanks, canals or other waterways
where vessels may lie alongside to receive and discharge cargo or passenger,
or lie at rest;

(e) "Pier" includes any stage, stair, landing stage, jetty, floating
barge or pontoon, and any bridge or other works connected therewith;

(f) "Dock" includes locks, cuts, entrances, graving docks, inclined
planes, slipways, quays and other works relative thereto;

(g) "Bulkhead" means any structure serving to divide land and

water areas;


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(h) "Basin" means any naturally or artificially enclosed or nearly
enclosed body of water in free communication with the sea;

(i) "Warehouse" means any building for storage or shed for cargo;

() "Lighter" means any large flat-bottomed boat or barge used in
transporting goods, or in loading or unloading of vessels not lying alongside
piers or wharves;

(k) "Anchorage" means any place with sufficient depth of water
where vessels anchor or may ride at anchor within the harbor;

() "Goods" includes wares and merchandise of every description;

(m) "Rates" includes tolls, fees, dues and rent imposed by the
Authority;

(n) "Vehicle" includes any carriage traveling on its own wheels or
runners and used or intended to be used for the conveyance or carrying of
persons, animals or goods; and

(0) "Vessels" includes any ship, boat or any waterborne craft used
in the conveyance or carrying of persons animals or goods.

SECTION 5. Purposes and Objectives. — The Authority shall
have the following purposes and objectives:

(a) To integrate and coordinate the planning, development,
construction and operations of ports and port facilities within its territorial
jurisdiction, consistent with the needs and requirements of the province;

(b) To enhance the flow of international and domestic commerce

passing through or utilizing the provincial ports; and


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(c) To promote provincial development by providing support
services to sustain the growth of export and other priority industries in the
province.

SECTION 6. Territorial Jurisdiction. — The territorial
jurisdiction of the Authority shall include all seas, lakes, rivers and all other
navigable inland waterways within the Province of Bohol, including
waterways within the said province and all other cities existing and which
may hereafter be created therein.

SECTION7. Powers. — The Authority shall have the power
and responsibility to:

(a) Have perpetual succession under its corporate name until
otherwise provided by law;

(b) Prescribe its bylaws and such rules and regulations as may be
found necessary to promote or enhance the business of the Authority;

(c) Adopt and use a seal;

(d) Sue and sued in any court;

(e) Enter into contracts, transactions, and undertakings of whatever
nature, which are necessary or incidental to its functions and objectives, with
any natural or juridical persons or with any government institutions,
domestic or foreign;

(f) Acquire, own, hire, use, operate and dispose of personal
property and to acquire, own, use, lease, operate and dispose of real property
and interests thereon and to make improvements on such real property,
including the reclamation, for port purposes, of foreshore and submerged

lands within its territorial jurisdiction; which reclaimed land shall ipso facto


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be deemed transferred in ownership to the Authority; and to enter into
contracts with any public or private entity for such reclamation under such
terms and conditions as it may deem to be for the public interest; aisa de

(g) Purchase, hold, alienate, mortgage, pledge or otherwise dispose
of the shares of the capital stock of, or any bond, security or other evidences
or indebtedness created by any other corporation or co-partnership of this or
any other country, and while the owner of said stock, to exercise all the
rights of ownership, including the right to vote thereon;

(h) Exercise the right of eminent domain;

(i) Exercise all other powers not contrary to law which may be
necessary or incidental to the effectuation of is authorized purposes or to the
exercise of any of the foregoing powers, except the power to levy taxes
assessments and, in general, to exercise in connection with property within
its control all powers which may be exercised by a natural or juridical person
over its property and affairs;

(j) Levy dues and impose rates and charges for the use of the
premises, works, appliances, facilities or for services provided by or
belonging to the Authority, or any other organization concerned with port
operations;

(k) Make expenditures in foreign countries to pay commissions and
hire or contract experts and consultants, both foreign and local;

(1) | Make expenditures for promotion of the business affairs of the
Authority; and

(m) Exercise all the powers of a corporation under the Corporation

Law insofar as they are not inconsistent with the provisions of this Act.


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1 SECTION 8. Governing Body. — The powers and functions of
2 the Authority shall be vested in and exercised by a Bohol Port Commission
3. composed of a Chairman, a Vice-Chairman and five (5) other
4 Commissioners. The Chairman shall be the Secretary of the Department of
5 Transportation and Communications. The Vice-Chairman shall be the
6 Provincial Governor of Bohol. The Commissioners shall elect from among
7 themselves the designated Bohol Port General Manager.

8 The Commissioners shall be appointed by the President of the
9 Philippines and shall represent the following sectors:

10 (a) Shipowners and shipping operators;

in (b) | Cargo-handling labor sector; and

12 (c) Business sector.

13 SECTION 9. Powers and Functions of the Commission. —
14 The powers and functions of the Bohol Port Commission shall be as follows:
15 (a) To manage, administer, operate, maintain, improve and
16 develop, coordinate and otherwise govern the activities of all the ports
17 _ within its territorial jurisdiction;

18 (b) To investigate, prepare, adopt, implement and execute a
19 comprehensive and orderly plan for the overall development of all ports
20 within its territorial jurisdiction, and to update such plans, as may be
21 warranted from time to time;

22 (c) To raise revenues for the Authority through fees, tolls, charges,
23 rentals and the like for the use of any property, equipment or facility owned

24 or controlled by it;


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1 (d) To raise and administer, together with such revenues as may by
2 law accrue to the Authority, capital outlays by means of loans from any local
3 or foreign financial institution to finance its projects;
4 (e) To determine by survey and establish by engineering design the
5 exact location, system and character of any and all port facilities which it
6 may own, construct, establish, effectuate, operate or control;
7 (f) To provide and maintain port facilities including accessory
8 buildings and installations within its territorial jurisdiction on its own or
9 through the private sector;
10 (g) To prescribe and enforce rules and regulations on the use
11 wharves, piers and anchorages by ships and other watercraft;
12 (h) To determine the organization of the Authority and create such
13 functional units therein as it may deem necessary in the proper and efficient
14 implementation of the functions and purposes of the Authority, including the
15 appointment of officials and employees, it being understood that the security
16 of tenure of these workers shall be respected consistent with existing laws;
17 (i) To define the duties and fix the compensation and benefits of
18 the General Manager, Deputy General Manager, Port Managers, and other
19 officers of the Authority, in accordance with the rules and regulations of the
20 Civil Service Commission and the Department of Budget and Management;
21 (j) To approve the annual budget of the Authority and/or such
22 supplemental budgets thereof as may be submitted by the General Manager
23 from time to time; and
24 (k) To perform such other duties as may be necessary and

25 convenient for the attainment of the objectives of the Authority.


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SECTION 10. Term of Office. — The members of the Bohol Port
Commission shall be appointed for a term of three (3) years: Provided, That
any person appointed to fill a vacancy shall hold office only for the
unexpired term of the Commissioner whom he succeeds.

SECTION 11. Quorum, Per Diems and Allowances. — Four (4)
members of the Commission shall constitute a quorum for the transaction of
business.

Unless otherwise fixed by the Commission, the Chairman and all the
members shall each receive a per diem of Five thousand pesos (P5,000),
exclusive of traveling expenses, for each day of meeting of the Commission,
which shall not exceed four (4) meetings a month.

SECTION 12. General Manager. — The management of the day-
to-day business and operations of the Authority shall be under the direction
and control of the General Manager. He shall have the following powers and
duties:

(a) To manage, direct and supervise the operations and internal
administration of the Authority, subject to the control and supervision of the
Commission;

(b) To prepare all memoranda pertaining to each and every item in
the agenda for the meetings of the Commission and to submit for the
consideration thereof such proposals or recommendations which he believes
to be necessary to carry out effectively and beneficially the business of the
Authority;

(c) To implement the policies and administer the measures

approved by the Commission;


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(d) To devise the executive organization pattern of the Authority,
submit from time to time to the Commission the corresponding
organizational and functional charts, and enforce the executive elements
thereof;

(e) To appoint and employ the services of subordinate officials and
employees subject to the confirmation of the Commission;

(f) To prepare and submit to the Commission budget proposals of
all kinds; and

(g) To perform such other duties and exercise such other powers as
may be directed or authorized specifically by the Commission.

SECTION 13. Prohibition Against Conflict of Interest. — No
members of the Commission shall be financially interested, directly or
indirectly, in any contract entered into by the Authority or in any special
privilege granted by it. Violation of this prohibition shall constitute a ground
for dismissal.

SECTION 14. Application of Civil Service Laws. — All officers
and employees of the Authority shall be subject to the Civil Service
Commission and the Department of Budget and Management rules and
regulations, except those whose positions may, upon recommendation of the
Port Commission, be declared by the President of the Philippines as policy
determining, primarily confidential or highly technical in nature.

SECTION 15. Supplies and Services Other Than Personal. — All
purchases or contracts for services, except for personal services, entered into
by the Authority shall be done only after public bidding therefor is held:

Provided, That such bidding may be required when an emergency, as


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1 explained and certified to by the General Manager, requires immediate
2 delivery of the supplies or performance of the services and the unit costs or
3 prices of such emergency procurement do not exceed the latest costs or
4 prices paid by the Authority for the same or similar goods or services:
5 Provided, further, That the General Manager shall report under oath to the
6 Commission the details of any such emergency procurement within two (2)
7 weeks after its consummation, including a statement of assurance that the
8 transaction constitutes the best arrangement possible under the
9 circumstances.

10 SECTION 16. Capitalization. — The Authority shall have an
11 authorized capital stock equal to and consisting of:

12 (a) The value of fixed assets, including port facilities and
13 equipment administered by or belonging to the Port of Bohol and such other
14 properties, movable and immovable, within the territorial jurisdiction of the
15 Authority as defined in Section 6 hereof, valued on the date of the effectivity
16 of this Act; and

17 (b) Government contribution in such amount as may be deemed an
18 appropriate initial balance. Such initial amount, as approved by the President
19 of the Philippines, shall be more or less equivalent to six (6) months working
20 capital requirement of the Authority.

21 SECTION 17. Auditor and Personnel. — The Commission on
22 Audit shall appoint a representative who shall be the Auditor of the
23 Authority and the necessary personnel to assist said representative in the
24 performance of his duties. The operating expenses of the auditing office and

25 the salaries of both officials and employees shall be paid by the Authority.


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1 SECTION 18. Power to Issue Bonds. — The Authority, to incur
2 indebtedness or to issue bonds to carry out approved capital investment
3 projects, shall be approved by the affirmative vote of at least four (4) of all
4 members of the Commission is a special meeting called for the purpose and
5 approved by the President of the Philippines upon the recommendation of
6 _ the Secretary of Finance and the Central Bank of the Philippines.
x SECTION 19. Bond Limits. — The bonds that may be issued by the
8 Authority shall in no case exceed the total amount of One billion pesos
9 — (P1,000,000,000): Provided, That no single issue shall be made if at least
10 seventy percent (70%) of the immediately preceding issue is not yet sold.
1 The bonds shall be issued only in such amounts as will be needed at
12 only one (1) integral operation not exceeding one (1) year duration, taking
13 into account the state at which said bonds may be absorbed by the buying
14 public and the fund requirements of the project ready for execution, and
15 considering further a proper balance between productive and non-productive
16 projects so that inflation shall be held to a minimum.
17 SECTION 20. Form, Rate of Interest, etc. of Bonds. — The
18 Secretary of Finance, in consultation with the Monetary Board, shall
19 prescribe the form, the rate of interest, the denominations, maturities,
20 negotiability, convertibility, call and redemption features, and all other terms
21 and conditions of issuances, placement, sale, servicing, redemption and
22 payment of all bonds issued under the provisions of this Act.
23 The bonds issued by virtue of this Act shall be made payable both as

24 to principal and interest in Philippine currency and shall be acceptable as


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security in any transaction with the Government in which such security is
required.

SECTION 21. Transfer of Existing Facilities and Intangible
Assets. — All existing facilities including wharves, piers, slips, docks,
bulkheads, cargo terminals, warehouses, cold storage, loading and unloading
equipment, and passenger terminals and accessories, within the territorial
jurisdiction of the Authority; other lands, buildings and other properties,
movable or immovable, belonging to or presently administered by the
Philippine Ports Authority; and all assets, powers, rights, interests and
privileges relating to port works or operations, including all equipment, are
hereby transferred to the Authority.

SECTION 22. Projects in Progress. — All ongoing projects relating
to the rehabilitation and/or construction of port facilities and supply of
equipment shall be administered and undertaken by the Authority.

SECTION 23. Transfer of Liabilities and Debts. — Upon the
transfer to and acceptance by the Authority of the existing physical facilities,
intangible assets and completed projects referred to in the preceding
sections, all debts, liabilities and obligations of the Philippine Ports
Authority in respect of such physical facilities, tangible assets and completed
projects within the ports shall likewise be assumed by the Authority.

SECTION 24. Abolition of the Port Management Office of Bohol
as a Port Management Unit of the Philippine Ports Authority. — The
Port Management Office of Bohol is hereby abolished. The General
Manager of the Authority shall ensure the smooth transfer of responsibility

from the abolished entity to the Authority as well as the determination of


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personnel to be retained: Provided, That all officials and employees whose

services are terminated shall, if not eligible for retirement, be given
gratuities equivalent to one (1) month salary for every year of continuous
satisfactory service on the basis of the highest salary received in addition to
other benefits accorded to them by existing laws.

SECTION 25. Annual Report. — An annual report of the Authority
shall be submitted to the President of the Philippines within sixty (60) days
after the close of each fiscal year.

The original of said report shall be submitted to the President of the
Philippines and copies thereof to the House of Representatives and the
Senate of the Philippines and the Department of Transportation and
Communications. The report shall include a financial statement duly
certified by the Auditor of the Authority.

SECTION 26. Appropriations. — The amount necessary to carry
out the provisions of this Act shall be included in the General
Appropriations Act of the year following its enactment into law and
thereafter.

SECTION 27. Separability Clause. — If any provision of this Act
or the application of such provision to any person or circumstance is
declared unconstitutional, the remainder of this Act or the application of
such provision to other persons or circumstances shall not be affected by
such declaration.

SECTION 28. Repealing Clause. — All acts, charters, executive
orders, administrative orders, rules and regulations, or parts thereof, in

conflict with this Act hereby repealed or modified accordingly.


1 SECTION 29. Effectivity Clause. — This Act shall take effect
2 fifteen (15) days after its publication in at least two (2) national newspapers

3 of general circulation or in the Official Gazette, whichever comes earlier.

APPROVED.