Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 4561

Introduced by: Representatives Shernee A. Tan and Samier A. Tan

EXPLANATORY NOTE

The Maimbung Municipal Port located in the Municipality of
Maimbung, Province of Sulu was constructed as a municipal fish port
and cold storage facility in 2011 from the funding allocation of the
Philippine Fisheries Development Authority (PFDA), Department of
Agriculture (DA).

The paramount objective of the establishment of the port was to
transform Maimbung into a major fish trading center in Western
Mindanao that would effectively provide small fisherfolk and their
families sustained source of income and a more stable livelihood.

It is a reality however, that the local government of the said
municipality cannot cope with the increasing demands resulting from ther
growing population with diverse needs and interests. The operation and
maintenance, and possible expansion to accommodate more vessels,
both passenger and fishing vessels, therefore of the Maimbung Municipal
Port would be extremely difficult to bear due mainly to its limited
financial resources. There is an urgent need that this port must be
managed and maintained by a team of professionals with special skills in
port management to ensure its successful operation.

This bill therefore seeks to convert the Maimbung Municipal Port
into Maimbung Port Authority in order to ignite the engine of economic
development not only of the Municipality uf Maimbung but also the
localities in the entire Sulu Archipelago.

‘The foregoing reasons warrant the approval of this bill.

SPAN fou AT
tive

Reprksehtat Representative
Kusug Tausug Partylist First District, Sulu



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4561

Introduced by: Representatives Shernee A. Tan and Samier A. Tan

AN ACT
CONVERTING THE MAIMBUNG MUNICIPAL PORT LOCATED IN THE
MUNICIPALITY OF MAIMBUNG, PROVINCE OF SULU INTO A PORT
AUTHORITY TO BE KNOWN AS THE MAIMBUNG PORT AUTHORITY,
DEFINING ITS POWERS AND FUNCTIONS, 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 cited as the
“Charter of the Maimbung Port Authority.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of
the State to encourage and promote the establishment and development
of autonomous regional port bodies to bring about a safe, efficient,
economical and systematic movement of goods and persons through the
port, in line with the constitutional framework to break the cycle of
poverty by giving all regions, including those in the remote areas,
maximum utilization of resources and opportunity to spur economic
development.

SEC. 3. Conversion of Maimbung Municipal Port. - The
Maimbung Municipal Port located in the Municipality of Maimbung,
Province of Sulu is hereby converted into a port authority to be known as
the Maimbung Port Authority hereinafter referred to as the Authority.

The Authority shall be under the supervision of the Department of
Transportation (DOTr) for purposes of policy coordination.


SEC. 4. Definition of Terms. - For purposes of this Act, the
following terms shall mean:

a.

“Port facility” shall include wharf, warehouses, cold
storage, loading, and unloading equipment, and
passenger terminals and accessories;

“Navigable waters” means all navigable portions of the
seas, estuaries and inland waterways;

“Wharf” means a continuous structure built parallel to or
along the margin of the sea or alongside riverbanks,
canals, or waterways where vessels may lie alongside to
receive and discharge cargo or passenger, or lie at rest;
“Pier” includes any stage, stair, landing stage, jetty,
floating barge or pontoon, and any bridge or other works
connected therewith;

“Dock” includes locks, cuts, entrances, graving docks,
inclined planes, slipways, quays and other works relative
thereto;

“Warehouse” means any building for storage or shed for
cargo;

“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;

“Rates” includes tools, fees, dues and rent imposed by
the Authority;

“Vehicle” includes 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.

SEC. 5. Purposes and Objectives. - The Authority shall have the
following purposes and objectives:

a.

To integrate the planning, development,
operations of the ports and port faci
territorial jurisdiction, consistent with the needs and
requirements of the region;

To enhance the flow of international and domestic
commerce passing through or utilizing the regional ports;
and

To promote regional development by providing support
services to sustain the growth of export and other priority
industries in the region.



SEC. 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 Sulu .

SEC. 7. Powers and Responsibilities. - The Authority shall have
the power and responsibility to:

a.

b.

920

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

Prescribe its by-laws and such rules and regulations as
may be found necessary to promote or enhance the
business of the Authority;

Adopt and use a seal;

Sue and be sued in any court;

Enter into contract, 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;

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 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 interests;

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

Exercise the right of eminent domain;

Exercise all other powers not contrary to law which may
be necessary or incidental to the effectuation of its
authorized purposes or to the exercise of any of the
foregoing powers, except the power to levy taxes or
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;

Levy dues and impose rates and charges for the use of
the premises, works, appliances, facilities, or for services

4


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;
m. Exercise all the powers of a corporation under the

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

SEC. 8. Governing Body. — The powers and functions of the
Authority shall be vested in and exercised by a Maimbung Port
Commission composed of a Chairman, a Vice-Chairman and five other
Commissioners. The Chairman shall be the Secretary of the Department
of Transportation or his duly designated undersecretary. The Vice-
Chairman, who shall be designated as the Maimbung Port General
Manager, shall be elected by the Commissioners from among themselves.

The Commissioners shall be appointed by th4e President of the
Philippines and shall represent the following sectors:

a. Shipowners and shipping operators
b. Cargo-handling labor sector; and
c. Business sector.

SEC. 9. Powers and Functions of the Commission. - The
powers and functions of the Commission of Maimbung Port Commission
shall be as follows:

a. To manage, administer, operate, maintain, improve and
develop, coordinate and otherwise govern the activities of
all the ports within its territorial jurisdiction;

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

@. To raise revenues for the Authority through fees, tolls,
charges, rentals and the like for the use of any property,
equipment or facility owned or controlled by it;

da. To raise and administer, together with such revenues as
may by law accrue to the Authority, capital outlays by
means of loans from any local or foreign financial
institution to finance its projects;

e. To determine the survey and establish by engineering
design the exact location, system and character of any


and all port facilities which it may own, construct,
establish, effectuate, operate or control;

f. To provide and maintain port facilities including accessory
buildings and installations within its _ territorial
jurisdiction on its own or through the private sector;

g. To prescribe and enforce rules and regulations on the use
of wharves, pier and anchorages by ships and other
watercraft;

h, To determine the organization of the Authority and create

such functions units therein as it may deem necessary in
the proper and efficient implementation of the functions
and purposes of the Authority, including the appointment
of officials and employees, it being understood that the
security of tenure of the workers shall be respected
consistent with existing laws;

i To define the duties and fix the compensation and benefits
of the General Manager, Deputy General manager, Port
Managers, and other officers of the Authority, in
accordance with the rules and regulations of the Civil
Service Commission and the Department of Budget and
Management;

i. To approve the annual budget of the Authority and/or
such supplemental budgets thereof as may be submitted
by the General Manager from time to time; and

k. To perform such other duties as may be necessary and
convenient for the attainment of the objectives of the
Authority.

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

SEC. 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 Ten thousand pesos
(P10,000.00), exclusive of traveling expenses, for each day of meeting of
the Commission, which shall not exceed four (4) meetings a month.

SEC. 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;

(ch To implement the policies and administer the measures
approved by the Commission;
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;

i To prepare and submit to the Commission budget
proposals of all kinds; and

& To perform such other duties and exercise such other

powers as may be directed or authorized specifically by
the Commission.

SEC. 13. Prohibition Against Conflict of Interest. - No member
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.

SEC. 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.

SEC. 15. Supplies and Services Other Than Personal Services.
~ All purchases or contracts for services, except for personal services,
entered into by the Authority shall be done only after public bidding
therefore is held: Provided, That such bidding may be required when an
emergency, as explained and certified to by the General Manager,
requires immediate delivery of the supplies or performance of the services
and the units costs or prices of such emergency procurement do not
exceed the latest costs or prices paid by the Authority for the same or
similar goods or services: Provided, further, That the General Manager
shall report under oath to the Commission the details of any such
emergency procurement within two (2) weeks after its consummation,

7


including a statement of assurance that the transaction constitutes the
best arrangement possible under the circumstances.

SEC. 16. Capitalization. - The Authority shall have an
authorized capital stock equal to and consisting of the following:

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

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

SEC. 17. Auditor and Personnel. - The Commission on Audit
(COA) shall appoint a representative who shall be the Auditor of the
Authority and the necessary personnel to assist said representative in
the performance of his duties. The operating expenses of the auditing
office shall be paid by the Authority.

SEC. 18. Power to Issue Bonds. - The Authority, to incur
indebtedness or to issue bonds to carry out approved capital investment
projects, shall be approved by the affirmative vote of at least four (4) of all
the members of the Commission in a special meeting called for the
purpose and approved by the President of the Philippines upon the
recommendation of the Secretary of Finance and the Bangko Sentral ng
Pilipinas.

SEC. 19. Bond Limits. - The bonds that may be issued by the
Authority shall in no case exceed the total amount One billion pesos
(P1,000,000,000.00): Provided, That no single issue shall be made if at
least seventy percent (70%) of the immediately preceding issue is not yet
sold.

SEC. 20. Form, Rate of Interest, etc. of Bonds. - The Secretary
of Finance, in consultation with the Monetary Board, shall prescribe the
form, the rate of interest, the denominations, maturities, negotiability,
convertibility, call and redemption features, and all other terms and
conditions of issuances, placement, sale, servicing, redemption and
payment of all bonds issued under the provisions of this Act.

The bonds issued by virtue of this Act shall be made payable both
as to principal and interest in the Philippine currency and shall be


acceptable as security in any transaction with Government in which
such security is required.

SEC. 21. Transfer of Existing Facilities and Intangible
Assets.- All existing facilities, including loading and unloading
equipment, and passenger terminal 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
Municipality of Maimbung, Province of Sulu, and all other assets,
powers, rights, interest and privileges relating to port works or
operations, including all equipment, are hereby transferred to the
Authority.

SEC. 22. Projects in Progress. - All on-going projects, if there is
any, relating to the rehabilitation and/or construction of port facilities
and supply of equipment shall be administered and undertaken by the
Authority.

SEC. 23. Transfer of Liabilities and Debts. - Upon the transier
to and accepted 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 Municipality of
Maimbung, Province of Sulu relating to the operation and maintenance
and other matters appurtenant thereto of the Maimbung Municipal Port
in respect of such physical facilities, tangible assets and completed
projects within the ports shall likewise be assumed by the Authority.

SEC. 24. Abolition of the Maimbung Municipal Port as a Port
Management Unit of the Municipality of Maimbung, Province of
Sulu. - The Maimbung Municipal Port 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 the 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.

SEC. 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 copy 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
(DOT). The report shall include a financial statement duly certified by
the Auditor of the Authority.


SEC. 26. Appropriation. - 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.

SEC. 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.

SEC. 28. Repealing Clause. ~ All laws, decrees, executive orders,
rules and regulations, which are inconsistent with this Act, are hereby
repealed, amended or modified accordingly.

SEC. 29. Effectivity.- This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,