. 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S.B. No. 
Introduced by SENATOR JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Ports play an indispensable role in support o f  national development, particularly 
in archipelagic countries like the Philippines where domestic shipping is so vital. The 
fundamental fbnction of ports is a distribution link. The smooth functioning of ports as 
the junction between water and land transportation results in a stabilized and abundant 
consumer life for the people of the country and substantively helps the nation's economic 
growth by increasing its trade. 
There are at present approximately 19 base ports, 75 secondary ports, 528 
municipal or tertiary ports and more than 300 private ports throughout the country. The 
control, management and operation of these ports, particularly the base and secondary or 
terminal ports, is lodged with the Philippine Ports Authority (PPA) which was created 
under P.D. No. 504, as amended by P.D. No.857. With respect to municipal ports which 
are owned by local government units (LGUs), a majority of these are also managed or 
supervised by the PPA. 
There appears to be no clear statutory authority vesting LGUs with the power to 
control, manage and operate ports within their respective jurisdictions. Section 17 of the 
Local Government Code provides that LGUs shall exercise and discharge such other 
functions and responsibilities as are necessary, appropriate, or incidental to efficient and 
effective provision of basic services and facilities to their constituents. Although Sec. 17 
(e) of the said Code states that national agencies and offices shall devolve to LGUs the 
responsibilities enumerated in Section 17 (b) thereof, it will be noted from the list of 
infrastructure facilities to be devolved to LGUs that insofar as ports are concerned, only 
fishports are to be devolved. 
Aside from the above vague and limited power of LGUs on the management and 
operation of ports. Sec. 133 of the same Code further provides that unless otherwise 
provided therein, the exercise of taxing powers of provinces, cities, municipalities and 
barangays shall not extend to the levy of taxes, fees and charges and other impositions 
upon goods carried into or out of, or passing through, the territorial jurisdictions of LGUs 
in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees or 
charges in any form whatsoever upon such goods or merchandise. 
In view of the vague and limited powers exercised by LGUs over municipal ports 
under their respective jurisdictions, they are, therefore, deprived of substantial revenues 
derived therefrom. 
This bill, therefore, seeks to devolve the power and authority in the control, 
management and operation of municipal ports, including the power or revenue collection, 
from the Philippine Ports Authority to local government units. 
Such devolution of 
authority is in consonance with the declared policy of the State, as embodied in the Local 


Government Code, that local government units shall enjoy genuine and meaningful local 
autonomy to enable them to attain their fullest development as self-reliant communities 
and make them effective partners in the attainment of national goals. 
In view of the foregoing, early approval of this proposed measure is earnestly 
solicited. 
JI 
IT0 ESTRADA 
nator 


' 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
First Regular Session 
s 
A T E  
S.B No. 
Introduced by SENATOR JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR THE DEVOLUTION OF THE CONTROL, MANAGEMENT 
AND OPERATION OF MUNICIPAL OR TERTIARY PORTS FROM THE 
PHILIPPINE PORTS AUTHORITY TO LOCAL GOVERNMENT UNITS, AND 
FOR OTHER PU'RPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "Municipal Ports Act of 
2 004. " 
SEC. 2. Declaration of Policy. - The State recognizes the right of local 
government units to exercise such powers and discharge such functions as are necessary, 
appropriate, or incidental to efficient and effective provision of basic services and 
facilities to its constituents. In order that these political subdivisions of the State may 
enjoy genuine and meaningful local autonomy, it is imperative that certain functions and 
responsibilities presently discharged by National Government agencies and entities be 
devolved to these local units to enable them to attain their fullest development as self 
reliant communities and make them more effective partners in the realization of national 
goals. 
SEC. 3. Transfer of Jurisdiction Over Municipal Ports. - The control, 
management and operation of municipal ports, including revenue collection and all other 
activities relevant, thereto, is hereby transferred from the Philippine Ports Authority 
created under P.D. No. 504, as amended by P.D. No. 857, to local government units in 
accordance with the guidelines and conditions provided in this Act. 
SEC. 4. Criteria for Identifjing Municipal Ports to be Transferred. - The 
Department of Interior and Local Governments (DILG), in consultation with the 
Department of Transportation and Communications (DOTC), Department of Public 
Works and Highways (DPWH), and the League of Governors and Mayors shall determine 


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the criteria to be used in identifying which municipal ports shall be devolved to the 
jurisdiction of local government units, taking into consideration such factors as the 
volume of traffic of cargo and passengers in such ports. 
SEC. 5. Delineation of 
Responsibilities.. - The responsibilities in the 
administration of municipal ports among the agencies concerned and local government 
units shall be delineated as follows: 
a) 
The DOTC shall be responsible for the coordination of programming 
and implementation of future ports projects, including technical 
assistance and provision of engineering design standards; 
b) 
Actual construction, operation and maintenance of municipal ports 
shall devolve upon the local government units; 
c). 
The DPWH shall continue to implement all on-going port projects until 
completed and turned-over to the local government concerned. 
SEC. 6. Period within which Devolution will be Effecled. - The devolution of 
fkctions and responsibilities provided under Section 3 hereof shall be effected by the 
Philippine Ports Authority within six (6) months from the effectivity of this Act. 
SEC. 7. National Government Assistance. - The National Government shall 
provide financial assistance to local government units, particularly for the construction, 
development and rehabilitation of port facilities in those municipalities where the same 
are needed. 
SEC. 8. Technical Assistance. - The Philippine Ports Authority, the DOTC, 
DPWH, DILG, and other relevant agencies shall provide such technical assistance as may 
be requested by local govepment units during the initial period of implementation of this 
Act. 
SEC. 9. Authority to Levy Dues and Charges. - Local government units to whom 
the control and operation of municipal ports have been devolved pursuant to this Act 
shall have the power to levy dues, rates or charges for the use of the premises, works, 
appliances, facilities, or services owned and provided by them. 
SEC. 10. Transfer of Existing and Completed Physical Facilities. - The Philippine 
Ports Authority shall transfer to local government units the ownership over all existing 


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and completed public port facilities, quays, wharfs, docks, buildings and other property 
belonging to PPA in those municipal ports that are devolved to said local government 
units. Correspondingly, all debts, liabilities and obligations of PPA in respect of such 
facilities and property that were transferred to and accepted by the local government units 
concerned shall be assumed or deemed incurred by them. 
SEC. 11. Implementing Rules and Regulations. - The Department of Interior and 
Local Government, in consultation with the DOTC, DPWH, the Philippine Ports 
Authority and the League of Governors and Mayors, shall promulgate the rules and 
regulations to implement this Act within sixty (60) days from the date of its effectivity. 
SEC. 12. Separability Clause. - If any provision of this Act or the application of 
such provision to any person or circumstances is declared invalid, the remainder of the 
application of such provision in other persons or circumstances shall not be affected by 
such declaration. 
SEC. 13. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations or parts thereof inconsistent herewith are hereby repealed or modified 
accordingly. 
SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved,