WHEREAS, the Manila International Port Complex (MIPC) at North Harbor, Manila was constructed and developed pursuant to P.D. No. 1284 promulgated on 16 January 1978, and in response to the increasing need of international container trade;

WHEREAS, by virtue of P.D. No. 634 promulgated on 07 January 1975, as amended by P.D. No. 1284, the Manila International Port Terminals, Inc. (MIPTI) was granted a franchise for twenty-five (25) years, effective from 16 January 1978 to operate and manage all facilities, container terminals, warehouses, transit sheds, cargo handling equipment and other structures at MIPC and to render cargo handling services to shipping lines and others requiring the use of said facilities;

WHEREAS, in implementation of its franchise, MIPTI entered into a Memorandum of Agreement with the Philippine Ports Authority (PPA) on 01 April 1980, which spelled out the terms and conditions under which MIPTI shall render efficient services and violations of which will warrant the suspension or revocation of its franchise;

WHEREAS, under Section 4(c) of P.D. No. 1284 and Section 14.01 of the aforesaid agreement, PPA can, upon investigation or showing of violation thereof by MIPTI, recommend the suspension or revocation of its franchise to the President;

WHEREAS, review of MIPTI's compliance to its contract shows that it has committed substantial violations thereof and its services have consequently deteriorated to the prejudice of the international shipping, other port users and general public;

WHEREAS, it is imperative that the operations and management of the Manila International Port Complex (MIPC) and the provisions of the cargo handling and related services thereat should be improved;

WHEREAS, PPA can undertake on its own, the management and operations of the MIPC and the cargo handling services thereat pursuant to Section 6a (v) (x) of P.D. No. 857 promulgated on 23 December 1975;

WHEREFORE, I, CORAZON C. AQUINO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution and the law, do hereby order the immediate recall of the franchise granted to the Manila International Port Terminals, Inc. (MIPTI) and authorize the Philippine Ports Authority (PPA) to take over, manage and operate the Manila International Port Complex at North Harbor, Manila and undertake the provision of cargo handling and port related services thereat, in accordance with P.D. No. 857 and other applicable laws and regulations.

Done in the City of Manila, this 19th day of July in the year of Our Lord, nineteen hundred and eighty-six.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary