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FOURTEENTH CONGRESS OF THE REPUBLIC 
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7 JLlL -2 
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OF THE PHILIPPINES 
First Regular Session 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Ports play an indispensable role in support of national development, 
particularly in archipelagic country like the Philippines where domestic shipping is 
so vital. The fundamental function of ports is a distribution link. The smooth 
functioning of ports as 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 nineteen (19) base ports, seventy 
five (75) secondary ports, five hundred twenty eight (528) municipal or tertiary 
ports and more than three hundred (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 Presidential Decree No. 504, as amended by 
Presidential Decree No. 857. With respect to municipal ports which are owned 
by the 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 jurisdiction. 
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 Section 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 LGU 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, Section 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, charged and other impositions upon goods carried into or out of, or 
passing through the territorial jurisdiction of LGUs in the guise of charges of 
wharfage, tolls for bridges or otherwise, or taxes, fees or charges in any form 
whatsoever upon such goods or merchandise. 
In view of the vague and limited powers exercised by the LGUs over 
municipal ports under their respective jurisdiction, they are, therefore, deprived of 
substantial revenues derived therefrom. 


This bill 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 
himator 


FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
- i 
<Jill -2 ,,;’ .: / 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
Senate Bill No. 449 
INTRODUCED BY SEN. 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 PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. -This Act shall be known as the “Municipal Ports Act 
of 2007. 
SEC 2. Declaration of Policy. - The State recognizes the right if local 
government units to exercise such powers and discharge such functions as are 
necessary, appropriate, or incidental to efficient an 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. - T he control, 
management and operation of municipal ports, including revenue collection and 
all other activities relevant thereto is hereby transferred from the Philippine Ports 
Authority (PPA) created under Presidential Decree 504, as amended by 
Presidential Decree 857, to local government units in accordance with the 
guidelines and conditions provided in this Act. 
SEC 4. Criteria for Identifying Municipal Ports to be Transferred. - The 
Department of Interior and Local Government (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 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: 
Actual construction, operation and maintenance of municipal 
ports shall be devolved to the local government units; 
The DPWH shall continue to implement all on-going projects 
until completed and turned-over to the local government 
concerned. 
SEC 6. Period within which Devolution will be Effected. - The devolution 
of functions and responsibilities provided under Sectioh 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 government 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 I O .  Transfer of Existing and Completed Physical Facilities. - The 
Philippine Ports Authority shall transfer to local government units the ownership 
over all existing and completed public port facilities, quays, wharfs, docks, 
buildings and other properties 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. 
lmplernenting Rules and Regulations. - The DILG, in 
consultation with the DOTC, DPWH, PPA and the League of Governors and 
Mayors, shall promulgate the rules and regulations necessary to implement this 
Act within sixty (60) days from the date of its effectivity. 


SEC 12. 
Separabilify 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,