SIXTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES.
First Regular Session

of REPRESENTATIVES

House Bill No. 4312

HOU

“Introduced by: MA. THERESA B. BONOAN
4" District, City of Manila

EXPLANATORY NOTE

The City of Manila has Manila de bay, a national wealth, in its
territorial jurisdiction. The bay is considered to be one of the best natural
harbours in Southeast Asia and one of the finest in the world. Manila
Bay is a natural harbour which serves the Port of Manila. It facilitated
commerce and trade between the Philippines and its neighboring
countries, becoming the gateway for socio-economic development even.
prior to Spanish occupation

It is provided in the Constitution that the City of Manila shall be
entitled to an equitable share in the proceeds of the national wealth as well
as in the utilization and development of it. Manila was never given a share
in the income from its own national wealth. After 40 years of taking away
of its Constitutional right, Manila is in now fighting not only for its share
on the income on the port harbors, Manila is now fighting for its very
existence for it has been financially cash strapped hardly could pay the
salaries of its employees and its obligations, affecting the quality of its
public service,

This bill seeks to establish the Manila Ports and Special Economic
Region (MP-SER) non-port related area from the Philippine Ports
Authority (PPA) system. The Bill returns to Manila its Constitutional right
and privilege in its share in the income from the port harbor and in the
participation in the planning and development of it

The Manila Ports and Special Economic Region shall be managed
and operated by the Administration which shall be known as MP-SERA.
It is an administration of multi-sectoral representation coming from the
national government from PPA and Philippine Navy, local government
unit, investors, private sector, and worker working in the port area. It is
believed by the proponent that it is in involving the different stakeholders
of the ports can we induce great and brilliant ideas to be able to develop
Manila Ports into a world class port facility and create a special economic


area with a goal of providing sustained high annual economic growth
through an efficient and graft free administration, delivering safe, efficient
and effective port services, administering sympathetic concern for the
problems of businesses, prescribing responsible environmental
stewardship, and exerting exemplary public service.

The government can utilize this high economic growth in terms of
its income in the implementation of its programs and projects in providing
better social services with end objective of improving the lives of
Manilefios and our Filipino brothers and sisters. This will also spawn
economic activity in the area and generate jobs for the people, increase
their productivity and individual incomes, and improve the level and
quality of their living conditions

In a timely pursuit in helping and supporting the National
Government of its vision to give more programs and services to the
Filipino people, the proposed measure ensures all taxes are paid in
congruence with the rules and regulations of the Bangko Sentral ng
Pilipinas (BSP), the Department of Finance (DOF), the Bureau of
Customs (BOC) and Department of Trade and Industry (DTD, in
accordance with the National Internal Revenue Code (NIRC) of 1997, as
amended, and the Tariff and Customs Code of the Philippines.

With the ultimate goal of having globally competitive ports and a
special economic located along Manila Bay effectively and efficiently
serving world markets and major multinational corporations to achieve the
high rate of annual economic growth of our country and of the City of
Manila, the early passage of this bill is earnestly requested.

HON. M. TE ‘A B, BONOAN

4th District, City of Manila



SIXTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE of REPRESENTATIVES
House Billo, A342

~Tntroduced by: MA. THERESA B, BONOAN
4" District, City of Manila

AN ACT ESTABLISHING THE MANILA PORTS AND SPECIAL
ECONOMIC REGION (MPSER) CREATING FOR THE PURPOSE
THE MANILA PORTS AND SPECIAL ECONOMIC REGION
ADMINISTRATION (MPSERA), APPROPRIATING FUNDS
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 AS
THE "MANILA PORTS AND SPECIAL ECONOMIC REGION ACT OF 2013".

SECTION 2. DECLARATION OF POLICY. —

A) Local Governments shall be entitled to an equitable share in the
proceeds of the utilization and development of the national wealth
within their respective areas, in the manner provided by law,
including sharing the same with the inhabitants by way of direct
benefits. (Sec. 7 Art. X of the Constitution)

B) The term national wealth shall mean all natural resources situated
within the Philippine territorial jurisdiction including lands of
public domain, waters, minerals, coal, petroleum, mineral oi
potential energy forces, and oil deposits, forest products,
wildlife, flora and fauna, fishery and aquatic resources, and all
quarry products.” (Article 386 of the Local Government Code)

C)_ "The State recognizes the indispensible role of the private sector,
encourages private enterprise, and provides incentives to needed
investments." (Sec. 20, Art II of the Constitution)

D) It is hereby declared the policy of the state shall promote a just and
dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty


through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of
life for all, (Sec. 9 Art, 2 of the Constitution)

FE) “The State shall protect and advance the right of the people to a

balanced and healthful ecology in accord with the rhythm and
harmony of nature.” (Article II, Section 16 of the Constitution)

SECTION 3. DEFINITIONS:

"ANCHORAGE" means a place with sufficient depth of water
where vessels anchor or may ride at anchor or may ride at anchor
within the harbor

"BASIN" means a naturally or artificially enclosed or nearly
enclosed body of water in free communication with the sea.

DEVELOPMENTAL PROJECTS OR PROGRAMS -
Programs or projects that can generate income, increase
employment rate, and increase real property tax for the City of
Manila.

"DOCK" includes locks, cuts, entrances, graving docks, inclined
planes, slipways, quays, and other works and things appertaining to
any dock.

DOCKAGE FEES — Dockage or berthing fee is the amount
assessed against a vessel engaged in international (foreign) trade for
berthing. It is levied on cargo vessels based on the number of days
of stay for the purpose of discharging and/or loading cargo: and on
non-cargo vessels for the purpose of loading and/or taking
passengers or for taking fresh water supply or receiving bunker
fuel

"DRYDOCK" means a dock from which the water can be
temporarily excluded, in order to effect repairs to hulls and keels of
Is

ships or ves:

"DUES" includes harbor fees, tonnage and wharfage dues,
berthing charges, and port dues and any other dues or fees imposed
by virtue of existing law or PD 857


"ENTRE PORT" provider of services such as whole sailing,
warehousing, sorting, processing, credit, currency exchange, risk
management, ship repair, provisioning, business information,
adjudication of commercial disputes.

"FUNCTIONS" includes powers and duties.

es, baggage, and any movable

"GOODS" includes animals, car
property of any kind.

“NATIONAL WEALTH” shall mean all natural resources
situated within the Philippine territorial jurisdiction including lands
of the public domain, waters, minerals, coal, petroleum, mineral
oils, potential energy forces, gas and oil deposits, forest products,
wildlife, flora and fauna, fishery and aquatic resources, and all
quarry products” (Article 386 of the Local Government Code)

“NET EARNINGS” shall mean income derived from whatever
source, whether exempt or subject to tax, net of deductions allowed
under Section 29 of the National Internal Revenue Code, as
amended, and income tax and other taxes paid thereon, but in no
case shall any reserve for whatever purpose be allowed as a
deduction from net earnings.

"PIER" means any structure built into the sea but not parallel to
the coast line and includes any stage, stair, landing place, landing
stage, jetty, floating barge or pontoon, and any bridge or other
works connected therewith

"PORT" means a place where ships may anchor or tie up for the
purpose of shelter, repair, loading or discharge of cargo, or for other
such activities connected with water-borne commerce, and
including all the land and all water areas and the structures,
equipment and facilities related to these functions.

PORT DUES ~ Vessels engaged in foreign trade, including those
engaged in barter trade, that enter any port, whether private or
government-owned, for loading and discharging cargoes,
embarking/disembarking passengers, bunkering or taking
provisions or repairs and changing members of the crew are
charged with port dues based on the vessel gross revenue tonnage


(GRT). It is a one-time charge assessed against vessels anytime
that they call at the port.

¢ "RATES" means any rates or charges including any toll or rent
under existing law or imposed by the Authority by virtue of this
Decree for facilities used or services rendered.

¢ "TERMINAL FACILITY" includes the seaport and its facilities
of wharves, piers, slips, docks, dry docks, bulkheads, basins,
warehouses, cold storage, and loading or unloading equipment.

e¢ "TRANSPORTATION FACILITY" includes rails and railcars,
highways, wheeled vehicles, bridges, tunnels, tramways, subways,
passenger or cargo vessels, ferry-boats, lighters, tugs, barges,
scows, ramps, and any kind of facility in use or for use of the
transportation, movement, or carriage of goods or passengers.

e "TRANSIT SHED" means a building or shed which is situated at
or near a quay, wharf or pier, and is used for the temporary or short-
term storage of goods in transit, or to be shipped or discharge from
a vessel.

e "VESSEL" includes any ship or boat, or any description of a
vessel or boat

¢ "WAREHOUSE" means a building or shed used for the storage of

cargo.

e¢ "WHARE" means a continuous structure built parallel to along the
margin of the sea or alongside riverbanks, canals or waterways
where vessels may lie alongside to receive or discharge cargo,
embark or disembark passengers, or lie at rest.

¢ WHARFAGE DUES ~ This refers to the charges levied on
loaded/unloaded cargoes whether imports, exports, inbound,
outbound, or transshipments. The computation is based on metric
ton for non-containerized cargoes and per box for containerized
cargoes.

SECTION 4. CREATION OF THE MANILA PORTS
AND SPECIAL ECONOMIC REGION. ~ a) It is hereby established a


Manila Ports and Special Economic REGION, a_public-benefit
corporation under the Office of the President hereinafter referred to as the
“MP-SER”. The specific metes and bounds of the MP-SER shall be
where Manila de Bay and the lands along said bay within the territorial
boundary of Manila between Pasay and Navotas including all lands within
the territory of PPA within Manila. All properties therein shall be owned
by the City of Manila, exclusively mananged by MP-SERA.

b) The Principal Office of the MP-SER shall be located inside the
Manila Port and Special Economic Region.

SECTION 5. GOVERNING PRINCIPLES, - The MP-SER
shall be managed and operated by the Manila Ports and Special
Economic Region Administration, hereinafier referred to as the MP-
SERA, under the following principles:

a) Port-Related activities within the Manila Port shall be managed and
operated by PPA which must be congruent to the policies set by the
MPSERA

b) The non-port related activities shall be managed and operated by
MP-SERA.

c) Within the framework and limitations of the Constitution, the MP-
SER shall be developed into and operated as a decentralized, self-
reliant and self-sustaining port/economic area serving world
markets and major multinational corporations into becoming one of
the world’s busiest ports and successful economic region focused
on high productivity projects in the following major sectors.

a) Regional entreport trade

b) Export oriented manufacturing companies of high-value
added goods

c) Petroleum refining

d) shipping

e) Provision of specialized services for international market
such as

Banking

Finance

Telecommunication

‘Tourism

Business Process Outsourcing (BPO)

LE:

Logistic Services

Regional Warehouse

ee cece eoe


d) The MP-SER shall be operated in accordance to the rules and
regulations of the Bangko Sentral ng Pilipinas (BSP), Cepartment
of Finance (DOF), the Bureau of Customs (BOC) and Department
of Trade and Industry (DTI), in accordance with the National
Internal Revenue Code (NIRC) of 1997, as amended, and the Tariff
and Customs Code of the Philippines.

The MP-SER shall continue to be prioritized by the national
government with transportation, infrastructure and facilities needed
to help decongest traffic in Metro Manila and prevent traffic loss
thru the construction/maintenance of the port infrastructures as well
the construction/maintenance of the needed inland railway system
originating from the ports going to the depot and vice-versa and
other urban highway network development using Savings from the
funds of DPWH.

é

f) The MP-SERA may establish mutually beneficial economic
relations with other entities or enterprises within the country or with
foreign entities or enterprises;

g) No real property managed by MP-SERA may be sold, mortgaged,
disposed or donated.

h) To have an efficient and graft-free administration. MP-SERA shall
ensure of compliance on Sec 338(Prohibition against advance
payments), Sec. 339 (Cash Advances), Sec. 343 (Prohibition
against expenses for reception and entertainment) Of the 1991 Local
Government Code

It shall adopt Sec 355- 383 Of the 1991 Local Government Code on
the “Property and Supply Management”.

j) To observe and conscienciously implement a green renewable,
reusable, recyclable, sustainable development.

SECTION. 6. FUNCTIONS AND POWERS EXCLUSIVELY
VESTED IN MP-SERA:

A) THE ADMINISTRATION SHALL HAVE THE FOLLOWING
FUNCTIONS AND POWERS ON THE “SPECIAL ECONOMIC
REGION”:

(a) Formulate, coordinate and/or execute policies on the
implementation of all programs, projects and activities of the
government affecting or relating to MP-SER:


(b) To exercise control of or administer any foreshore rights or leases
which may be vested in MP-SERA;

(c) Enter into contracts with any private persons or entity or any
government agency, either domestic or foreign, whenever
necessary for the effective discharge of its functions and
responsibilities under such terms and conditions as it may deem
proper and reasonable;

(d) Acquire through sale, expropriation or other means, hold real and

personal property as it may deem necessary or convenient in the

successful prosecution of its work, and mortgage, sell alienate, or
otherwise dispose any of its personal property; No land or real
property may be sold, alienated or otherwise disposed

(c) Receive, take and hold by bequest, device, donation, gift, purchase
or lease, from foreign or domestic sources, either absolutely or in
trust for any of its purposes, any asset, grant or property, real or
personal, subject to such limitations as are provided in existing
laws and regulations; to convey such assets, grant or property;
invest and reinvest the same and deal with and expand its assets
and income in such manner as will best promote its objectives:

(f) Initiate, plan, undertake and supervise the restoration, upkeep and
maintenance of the economic area of MP-SER;

(g) Prepare, adopt, revise and enforce such rules and regulations,
implementing guidelines and standards as are necessary for the
effective regulation of the land use and development activities in
MP-SER of both the government and private entities and for the
implementation of the MP-SER Plan, including, but not limited to
development rules and regulations pertaining to the following:

Land use allocation, use of buildings, their height, dimensions,
architectural style and designs and other specifications of
the building construction to be undertaken therein;

2. Traffic management, street usage and other related matters;

3

e and character of display signs, advertising billboards, and other

external signs and advertisements in buildings, in open spaces lots or
roads;


10

h) Expropriate properties within MP-SER;

i) Prescribe reasonable amounts to be charged as lease or filing fees,
inspection fees, permit fees, and other administrative or service fees
necessary for the effective enforcement of its laws and regulatory
measures, to be used and disbursed by it in the manner determined by it to
promote its objectives;

j) Exercise all powers necessary or incidental to the attainment of the

objectives of this Law.

B) FUNCTIONS AND POWERS OF MP-SERA ON THE “PORTS”:

i. To formulate a comprehensive and practicable Port
Development Plan and to program its implementation, renew
and update the same annually in coordination with the Bureau
of Lands, NEDA or any other government agency or
corporation, in the development of any foreshore area and to
compel compliance thereof.

ii, To protect the environment and prescribe ways to diminish if

not eradicate polution in Manila de Bay and to investigate and
penalize non-compliance thereof.

iii, To ensure proper payment of charges, fees and dues duly
collected by PPA.

SECTION. 7 THE CORPORATE POWERS OF MP-SERA
SHALL BE AS FOLLOWS:

i, To succeed in its corporate name.
ii, To sue and be sued in such corporate name,

iii, To adopt, alter, and use a corporate seal which shall be judicially
noticed.

iv. To adopt, amend, or repeal its by-laws.

v. To make or enter of any kind or nature to enable it to discharge its
functions under this Law.

vi. To acquire, purchase, own, or lease any land, port facility, wharf,
quay, or property of any kind, whether movable or immovable


nu

However, it cannot mortgage, sell, donate, or otherwise dispose any
land, or real property of any kind

vii. To reclaim, excavate, enclose, or raise any part of the lands vested
in the MP-SERA or any of its port districts.

viii, To do all such other things directly or indirectly necessary,
incidental or conducive to the attainment of the purposes of the MP-
SERA.

ix. Generally, to exercise all the powers of a corporation under the
Corporation Law insofar as they are not inconsistent with the
provisions of this Law.

SECTION 8. AUTHORITY OF THE BUREAU OF
CUSTOMS (BOC) TO EXAMINE THE ENTRY AND EXIT OF
IMPORTED ARTICLES IN THE MP-SER. - The BOC, shall have the
authority to examine the entry and exit of articles in the MP-SER or any
of its port districts in accordance to their mandate prescribed by law.

SECTION 9. AUTHORITY OF PHILIPPINE PORT
AUTHORITY (PPA) A) Philippine Port Authority (PPA) shall have the
corporate powers & duties provided by PD 857

B) The PPA shall have the authority to collect proper dues, fees and
charges within the port MP-SER, to wit:

a) Wharfage dues

b) Share in Arrastre / Stevedoring Income

c) Dockage Fees

d) Port Dues

e) Storage Charges

f) Port Usage Fees

g) Terminal Fees

h) Vessel Traffic Management Service Fees

i) Pilotage

j) Lay-up Fees

k) Berthing Charges

1) and other existing port dues, charges or fees in force and effect
before the effectivity of this Law

m) And others to be imposed by PPA

C) PPA shall have sole mandate to enter port-related contracts.

D)It shall also have the authority to conduct hearing on Tariff
Adjustment Petition and to arbitrate, and decide on issue limited


ease of charges,

only as to the reasonability of the increase or dec
fees, and dues.

E) PPA shall protect Manila Bay from pollution as part of its mandate
in developing ports. Ten (10%) of its budget provided in the
General Appropriation Act (GAA) shall be set aside for this

purpose.

F) PPA shall maintain police force to investigate, to prosecute and
prevent criminal activities as well as non-payment of proper custom
taxes and PPA’s charges, fees n dues in all ports whether private or
public port within the Philippine territory

G) PPA shall maintain the harbor and shall develop, finance, operate,
manage and supervise the ports facilities, port physical plants in
accordance to the Port Development Plan defined by MPSERA.

SECTION 10. AUTOMATIC RELEASE OF SHARES:
Alll collections by PPA within MP-SER and the latter’s port districts shall
be remitted, without need of any further action, directly to MP-SERA, on
a quarterly basis within five (5) days after the end of each quarter, and
which shall not be subject to any lien or holdback that may be imposed by
the National Government for whatever purpose or by any entity as
payment of obligations not directly incurred by MP-SERA.

SECTION II. DANGEROUS CARGO. — The MP-SERA
may make regulations for the conveyance, loading, discharging and
storage of dangerous goods within any port, port district, and the
approaches to the port.

SECTION. 12. LOCATIONAL CLEARANCE,
CONSTRUCTION AND OTHER PERMITS, All locational clearances
and construction permits for the development of lands, introduction of
improvements, and the use, change of use, construction, repair, alteration
or re-construction of buildings within MP-SER and other forms of permits
shall be issued by the MP-SERA on the basis of the approved MP-SER
Development Plan and other implementing rules and regulations. The
Administration may seek the assistance of Department of Public Works
and Highways insofar as the minimum standards of safety of buildings,
electrical, plumbing and drainage requirements are concerned.

The provisions of P.D. No. 1096, otherwise known as the National
Building Code and other related laws which are not inconsistent with this
Law and the rules and regulations promulgated by the MP-SERA shall
have a suppletory effect to this law and to the development control
regulations promulgated by the MP-SERA.


13

SECTION 13. REALTY TAXES -— All entities, persons, individuals
within MP-SER shall pay the necessary real property taxes imposed by
the Republic of the Philippines, its agencies, instrumentalities or political
subdivisions except if exempted by International Law or any law duly
approved by Congress;

SECTION 14. BANKING RULES AND REGULATIONS. -
Existing banking laws and rules and regulations of the BSP (Banko
Sentral ng Pilipinas) shall apply to banks and financial institutions to be
established in the MP-SER, such as those governing foreign exchange and
other current account transactions (trade and non-trade), local and foreign
borrowings, foreign investments, establishment and operation of local and
foreign banks, foreign currency deposit units, offshore banking units and
other financial institutions under the supervision of the BSP.

SECTION 15. BOARD OF DIRECTORS OF THE MP-SERA. -
The powers of the MP-SERA shall be vested in and exercised by a Board
of Directors, hereinafter referred to as the Board, which shall be
composed of the following:

(a) The chairman who shall, at the same time, be the administrator of
the MPSER

(b)A vice chairman who shall come from among the members of the
Board;

(c) Members consisting of:
1. One (1) representative from one of the highest official of PPA;

2. One (1) representative from the one highest official of Philippine
Navy:

3, One (1) representative from the Mayor's Office;

4. One (1) representative from the Vice Mayor’s Office;
5. One (1) representative from the investors in the ports of MP-SER;

6. One (1) representative from one of the highest officials of
Philippine Coast Guard

7. One (1) representative from any association providing services
related to import and export representing either the customs
brokers, or port users or truckers or any recognized group
transacting business within MP-SER;


8. One (1) representative from the workers working in MP-SER.

The chairman, vice-chairman, and the members of the Board,
except the ex-officio member, shall be appointed by the President
of the Philippines; Provided, that the terms of office of the first
appointees shall be fixed as follows: the Chairman shall be for six
(6) years, the Vice-chairman for five (5) years, three (3) members
shall be for four (4) year, and the last two (2) members shall be for
two (2) years and may be renewed by President of the Philippines
as the appointing officer: Provided, further, That upon the
expiration of his term, a member shall serve as such until his
successor shall have been appointed and qualified: Provided,
finally, That no vacancy shall be filled except for the unexpired
portion of any term.

All members of the Board must be equipped with the following
qualifications:

- Must be a Filipino citizen, except for the representative of the
business sector;

- Must be of good moral character, of probity and integrity, and
- Must be a degree holder in any of the following fields: economics
urban planning, business, law, management or their equivalent, or
with at least five (5) years relevant working experience in port

operations.

In addition to the above qualifications, the chairman/administrator
must have acquired experience in development planning and?or
administration of ports or economic area or any related field for at
least five (5) years.

The members of the Board shall each receive per diem at rates to be
determined by the Department of Budget and Management (DBM)
in accordance with the existing rules and regulations. Provided,
however, that the total per diem collected each month shall not
exceed the equivalent of four (4) meetings.

SECTION 16, POWERS AND DUTIES OF THE
CHAIRPERSON. - The chairperson shall have the following powers and
duties on the MP-SE8R:


15

(a) Direct, manage and supervise the operation and internal
administrative affairs of the MP-SERA subject to the control and
supervision of the Board;

(b)Establish the internal organization of the MP-SERA under such
conditions that the Board may prescribe;

(c) Submit an annual budget and necessary supplemental budget to the
Board for its approval;

(d) Submit within thirty (30) days after the close of each fiscal year an
annual report to the Board and such other reports as may be
required;

(e) To prepare all memoranda pertaining to each and every item in the
agenda for every meeting of the Board and to submit for the
consideration thereof such proposals or recommendations which are
necessary to carry out effectively and beneficially the business of
MP-SERA.

(£) Create a mechanism in coordination with relevant agencies for the
promotion of industrial peace, the protection of the environment
and the advancement of the quality of life of the Manilenos; and

(g) To implement the policies provided therein and to administer the
measures approved by the Board and perform such other duties as
may be assigned to him/her or which are necessary or incidental to
his/her office

(h)Shall act as one of the members of the Board of Directors of PPA
without any voting rights.

SECTION 17, ORGANIZATION AND PERSONNEL, - The
Board of the MP-SERA shall provide for an organization and staff
handling, legal, operations, administration and management of MP-SER
The Chairman may hire or contract new staff, experts and consultants
under such conditions that the Board may prescribe and subject to the
confirmation of the latter;

Upon the recommendation of the chairperson, the Board shall
appoint and fix the remuneration and other emoluments of its officers and
employees in accordance with existing laws on compensation and position
classification. Bonuses and incentives more than one month salary may be
given provided it is with the approval of DBM and COA. Provided, That
the Board shall have exclusive and final authority to promote, transfer,
assign or re-assign officers of the MP-SERA: Provided, further, No



16

officer or employee of the MP-SERA shall be removed or suspended
except for causes provided by the Labor Code

The officers and employees of the MP-SERA, including all
members of the Board, shall not engage directly or indirectly in partisan
activities nor take part in any election, except to vote.

SECTION 18. © CAPITAL EXTENSION.

a) The MPSERA shall have capital extension of Five Billion Pesos
(Php5,000,000,000.00) coming from the Retained Earnings of PPA to
be utilized as follows:

(i) Primarily, to construct a Port linkage infrastructures to the
proposed Connector Road with primary goal of decongesting
traffic in Metro Manila and preventing traffic loss

(ii) To construct multi-storey residential ~— mixed-used
condominium as relocation of the residents of the barangays
within the Manila Port Area whose names are registered in the
May 2013 Registered Voters of Comelec.

b) Yearly cash contribution by the Government shall be thirty percent
(30%) of the amount appropriated in the General Appropriation Act for
port purposes pursuant to PD 857 to be used for the
construction/maintenance of Manila ports and other urban highway
network development as well as needed roads and railway system
originating from the ports going to the depot and vice-versa.

the amount of One Hundred Million Pesos (Php100,000,000.00) a year
is hereby appropriated out of any fund in the National Treasury not
otherwise appropriated for the capitalization of MP-SERA_ and/or for
the construction or major maintenance of a multi-storey residential
mixed-used condominium as relocation of the residents of the
barangays within the Manila Port Area whose names are registered in
the May 2013 Registered Voters of Comelec.

©

SECTION. 19. CONSTITUTIONAL TARE FROM THE
GROSS PROFIT COMING FROM THE PORT REVENUES
COLLECTED BY PPA TO MP-SER. The constitutional share of
Manila is 12.5% of the gross profit of PPA generated in Manila which
shall fully & exclusively utilized for the benefit of the City of Manila
having no need to declare dividends under RA 7656 for the above share
shall be deducted only after PPA has declared its dividends based on the
latter’s net earnings to the National Government as prescribed in RA
7656.

The 12.5% gross share of Manila shall initially be invested in the ff:


7

d) In developmental programs or projects that generate income.

¢) In the continued construction, if still needed, multi-storey major repair
of the residential mixed used condominium relocation of the residents
of the barangays within the Manila Port Area

f) Or those developmental income-generating projects or programs that
will directly or indirectly redound to the improvement and
development of its port operations or port facilities port district or
special economic areas.

The profit from operations generated from the developmental programs or
projects of the above A & C of this Section and the fruits thereof shall
also be fully automatically be delivered to the coffers of City of Manila
without any conditions since it is the source of share of the City of Manila
as prescribed in the Constitution.

SECTION 20. The fruits of the income generated from Sec. 19 shall be
directly released to Manila and shall be appropriated as special funds for
the following with corresponding percentages.

- 30% Developmental projects that generates income for
Manila

- 20% Construction or necessary improvement of Mega
Drainages

= 20% College Scholarship.

= 10% Training Pangkabuhayan

- 10% Medical Facilities and needs of Hospital

- 5% Expenses Necessary to implement said above project
and Programs.

- 5% other social services of the City of Manila

If fruits of the income generated from Sec. 19 are not sufficient to fund all
the developmental projects above, the Mayor of the City of Manila must
give priority to College Scholarship, or College Scholarship and any of
the following:
- Developmental projects that generates income for Manila
- Construction or necessary improvement of Mega
Drainages or
- Medical equiptment facilities and other needs of the
Hospital.


SECTION. 21. SHARING OF NET PROFIT FROM THE
SPECIAL ECONOMIC REGION

- 80% goes to City of Manila.
— 20% goes to MPSERA

Share of the City of Manila from the special economic region of MP-SER
is directly and automatically released to Manila and shall be appropriated
as special funds in the same percentages and programs provided in Sec.
20.

However, share of MP-SERA on the Special Economic Region shall be
exclusively used for the development, improvement, operation and
administrative expenditure on the special economic region of MP-SER or
of the Manila Ports or any of its port districts, in their respective order of
importance as written/stated in this Section.

SECTION. 22. SHARING FOR THE INHABITANTS WHO USED
TO BE OCCUPYING THE LOT WITHIN THE MANILA PORT
AREA SHARE OF BARANGAY WHICH IS ON USED TO BE
SITUATED EQUALLY.

- The RPT share of all the barangays situated within MP-SER.
shall be equally divided among them.

- Ten percent of the share of said barangay shall be utilized for
re-painting, repair of the fascade and common areas and
facilities of the housing built for the residents who are
included in the May 2013 Comelec Registered Voter’s List.

SECTION. 23. ASSURANCE OF NETINCOME - All Operating
Expenses must be less than Fifty percent (50%) of its annual regular
income for the next preceding fiscal year.

SECTION 24. CREATION OF RESERVES. ~ The balance of any
revenue or income of the MPSERA remaining at the end of each year
shall be applied to the creation of a general reserve or such other reserves
and shall be utilized in accordance to what is originally prescribed in this
Law.

SECTION 25. INVESTMENT OF FUNDS. ~ The MPSERA
may, from time to time, invest any of its funds not immediately required
to be expended in meeting its obligations or in the discharge of the
functions of the MPSERA in such government securities approved by the
Board.



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SECTION 26. | NO BORROWING POWERS. ~ a) The MP-SERA
shall have no Borrowing Powers

SECTION 27. ANNUAL BUDGET - a) The Board shall every year
cause to be prepared and shall adopt annual estimates of income and
expenditures and estimates of capital expenditure of the Authority for the
ensuing year.

b) Supplementary estimates may be adopted at any of the meetings of the
Board.

SECTION 28. ANNUAL ACCOUNTS ~ a) The Board shall
cause proper accounts and other records of the Administration in relation
thereto to be kept. An annual statement of account shall be rendered in
respect to each year. MP-SERA shall maintain such accounts and other
records under a commercial system of accounting.

b) The accounts of the MP-SERA shall be kept and made up to 31
December in each year.

c) The annual statement of accounts of the MP-SERA shall present a true
and fair value of the financial position of the MPSERA and of the results
of the operations of the MP-SERA for the year to which it relates

SECTION 29. | AUDITOR ~ a) In consonance with existing laws and
regulations, the Commi: n on Audit shall be appointed to audit the
accounts of the MP-SERA. In the fulfillment of international contractual
commitments of the MP-SERA, however, the Board may engage the
services of any person or firm duly authorized by law for the audit of
accounts, to audit the accounts of the MP-SERA.

b) The Auditor shall be paid out of the revenue of the MP-SERA such
remuneration, compensation or expenses as the Board may determine.

SECTION 30. AUDITOR’S REPORT. — The Auditor shall as soon
as practicable, but not later than three months afier the accounts have been
submitted for audit, send an annual report to the Board. The Auditor may
also submit such periodical or special reports to the Board as may to him
appear necessary.

SECTION 31. ANNUAL REPORT. - The Board shall submit to the
President of the Philippines together with the Auditor’s Report on the
relevant accounts, an annual report generally dealing with the activities
and operations of the MP-SERA during the preceding year and containing
such information relating to the proceedings and policies of the MP-
SERA.


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SECTION 32. SUPERVISION AND COORDINATION OF
DEVELOPMENT PLANS. - For purposes of policy direction and
coordination, the MP-SERA shall be under the direct control and
supervision of Office of the President

“TION 33. RELATIONSHIP WITH NATIONAL
ECONOMIC DEVELOPMENT ADME. RATION (NEDA). - The
MPSERA shall determine the development goals for the MPSER within
the framework of national development plans, policies and goals. The
administrator shall, upon approval by the Board, submit the MPSERA
plans, programs and projects to NEDA for inclusion and inputs to the
overall regional development plan.

SE

SECTION 34. LEGAL COUNSEL. - The MPSERA shall have its
own internal legal counsel under the supervision of the Office of the
Government Corporate Counsel (OGCC). When the exigencies of its
businesses and operations demand it, the MP-SERA may engage the
services of an outside counsel cither on a case to case or on a fixed
retainer basis.

SECTION 35. INTERPRETATION/CONSTRUCTION. — The
powers, authorities and functions that are vested in the MP-SERA are
intended to decentralize governmental functions and authority and
promote an efficient and effective working relationship with the national
government and the City of Manila. However, in case of conflict, the
interpretation that is most advantageous for the development and success
of MP-SER shall prevail.

SECTION 36. AUDITING. - The Commission on Audit shall
appoint a representative who shall be a full-time auditor of the MP-SERA
and assign such number of personnel as may be necessary to assist said
representative in the performance of his/her duties. The salaries and
emoluments of the assigned auditor and personnel shall be in accordance
with pertinent laws, rules and regulations.

SECTION 37. SEPARABILITY CLAUSE. - If any provision of this
Act shall be held unconstitutional or invalid, the other provisions not
otherwise affected shall remain in full force and effect

SECTION 38, REPEALING CLAUSE. - All laws, executive orders
or issuances or any part thereof which are inconsistent herewith are
hereby repealed or amended accordingly.

SECTION 39. EFFECTIVITY CLAUSE. - This Act shall take
effect fifteen (15) days after its publication in at least two (2) national
newspapers of general circulation.


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AMENDMENTS TO MANILA PORT SPECIAL
ECONOMIC REGION BILL (MP-SER)

A.PPA SHALL HAVE “EXCLUSIVE” CONTROL AND
MANAGEMENT ON PORT RELATED ACTIVITIES IN
MANILA PORT.

B.AS TO PORT ACTIVITIES IN MANILA, MP-SER
SHALL CREATE A COMMIT THAT WILL
ENSURE CONGRUENCE OF POLICIES RELATING
TO THE DEVELOPMENT PLAN OF MANILA PORTS.

C.FOR NON-PORT ACTIVITIES. MP-SER SHALL
MANAGE, SUPERVISE, CONTROL THE SPECIAL
ECONOMIC REGION

D.MP-SER SHALL ONLY ASK FOR 12.5% GROSS OF
ITS CONSTITUTIONAL SHARE ON THE INCOME OF
PPA INCURRED IN MANILA.