About PPMC

The Poro Point Freeport Zone used to house the former Wallace Air Station. The enactment of Republic Act 7227 (Bases Conversion and Development Act) on March 19, 1992 and Proclamation No, 216 on July 27, 1993 effectively transferred the stewardship of the Freeport to the Bases Conversion and Development Authority (BCDA) to facilitate its conversion into a productive economic growth center.

On June 29, 1993, former President Fidel V. Ramos issued Executive Order No. 103 establishing John Hay Development Corporation as a subsidiary and implementing arm of BCDA for Camp John Hay. This was subsequently amended to include the development of Wallace Air Station, thereby renaming it to John Hay Poro Point Development Corporation. It was under JPDC when the operation, management and development of the San Fernando International Seaport and San Fernando Airport were turned over to BCDA on February 1, 1997 and February 1, 1998, respectively.

On 3 October 2002, Executive Order No. 132 was issued renaming the John Hay Poro Point Development Corporation to John Hay Management Corporation as the implementing arm of BCDA over the John Hay Special Economic Zone, and at the same time, authorizing the creation of the Poro Point Management Corporation. PPMC was registered with the Securities and Exchange Commission on 6 January 2003.

Mandate

Poro Point Management Corporation (PPMC) was created as the operating and implementing arm of Bases Conversion and Development Authority (BCDA) to manage the Poro Point Freeport Zone (PPFZ). PPMC is mandated to develop the PPFZ into a self-sustaining and environmentally sound industrial, commercial, financial, tourism, transshipment, and investment center with the end view of generating employment opportunities in and around PPFZ, attracting and promoting productive foreign investments, accelerating the sound and balanced conversion into alternative productive uses of the former Wallace Air Station, Voice of America (VOA) Complex and the City of San Fernando Seaport and Airport, consistent with the socioeconomic development of Northwestern Luzon in particular and of the country in general.

• On March 13, 1992, Congress enacted Republic Act No. 7227, otherwise known as the Bases Conversion and Development Act of 1992, creating the Bases Conversion and Development Authority (BCDA) to implement the declared policy of the state to accelerate the sound and balanced conversion of the former military reservation and their contiguous extensions into alternative productive civilian uses to promote the economic and social development if the country.

• On July 27, 1993, pursuant to Republic Act No. 7227, Proclamation No. 216 was issued creating and designating the area covered by the former Wallace Air Station as embraced, covered, and defined by the 1947 Military Bases Agreement between the Philippines and the United States of America, as amended, and other contiguous lands located within the territorial jurisdiction of San Fernando, La Union as Poro Point Special Economic and Freeport Zone (PPSEFZ).

• On June 29, 1993, Executive Order No. 103 was issued, creating the John Hay Development Corporation as the implementing arm of the Bases Conversion and Development Authority for the Camp John Hay.

• On July 7, 1994, BCDA incorporated the John Hay Poro Point Development Corporation as the single implementing arm to pursue the conversion and development of Camp John Hay and Poro Point.

• On October 7, 1998, Executive Order No. 31 was issued creating the John Hay Poro Point Development Corporation as the implementing arm of BCDA to manage the John Hay Special Economic Zone and the Poro Point Special Economic and Freeport Zone (PPSEFZ).

• On October 3, 2002, Executive Order No. 132 was issued, creating the Poro Point Management Corporation as the operating and implementing arm of BCDA over the Poro Point Special Economic and Freeport Zone (PPSEFZ).

• On January 6, 2003, the Poro Point Management Corporation was registered with the Securities and Exchange Commission.

• On March 20, 2007, Republic Act No. 9400 affirmed the Freeport Status of the Zone with explicit tax and duty free incentives and renaming the Poro Point Special Economic and Freeport Zone (PPSEFZ) to Poro Point Freeport Zone (PPFZ).

Functions

1. Primary Purpose

Poro Point Management Corporation (PPMC) develops, manages, owns, leases, sub-leases and operates seaports, and all components therein including establishments, facilities and related activities for maritime, industrial, educational, recreational, tourism, commercial, amusement, health, and other purposes; maintains and generally operates roads, water pump houses, power plants and other utilities in support of, or in connection with the foregoing purposes and generally carry out all activities, necessary to convert, develop, and maintain the facilities and properties within and around the Poro Point Freeport Zone for maritime, seaport, airport, tourism, commerce, industry and related concerns.

2. Powers and Functions

a. To operate, administer, manage and develop the former Wallace Air Station, Voice of America Complex, the City of San Fernando Seaport and Airport and other areas within the PPFZ as a free market in accordance with the policies set forth in Section 12 of Republic Act No. 7227;

b. To accept any local or foreign investment, business or enterprise, subject only to such rules and regulations to be promulgated by the PPMC in conformity with the policies of the BCDA, without prejudice to the nationalization requirements provided for in the Constitution;

c. To undertake and regulate the establishment, operation and maintenance of utilities, other services and infrastructure in the PPFZ, including airport operations in coordination with the Civil Aeronautics Board, and to fix just and reasonable rates, fares, charges and other prices therefore;

d. To lease out land, facilities and other properties in the PPFZ, by negotiated contract or otherwise, giving due consideration to the declared policies of Republic Act No. 7227;

e. To construct, acquire, own, lease, operate and maintain on its own or through contract, license, permit, franchise, bulk purchase from the private sector and build-operate-transfer scheme or other variation thereof, or joint venture, the required utilities and infrastructure facilities, factory buildings, warehouses, dams, reservoirs, water distribution, electric light and power systems, telecommunications and transportation, or such other facilities and services necessary or useful in the conduct of commerce or in the attainment of its purposes and objectives in coordination with local government units and in conformity with existing applicable laws thereon;

f. To determine and regulate the enterprises to be established within the PPFZ in order not to adversely affect the operations of existing domestic industries outside the PPFZ;

g. To grant the use of, the rent, lease or let, for a consideration and under such terms, arrangements and conditions it may deem reasonable and proper, any and all airport facilities, including cargo handling and airport terminal services, or any concession properly incident thereto or in connection with the receipt, delivery, and transfer or transit, weighing, marking, tagging, fumigating, refrigerating, icing, storing, and handling goods, wares and merchandise: Provided, however, that where the airport terminal facilities are owned and operated by private persons, the fees and the charges to be levied shall not exceed those being collected by the Government for similar services;

h. To fix, assess and collect storage charges and fees, including rentals for the lease, use or occupancy of lands, buildings, structures, warehouses, facilities and other properties owned and administered by the PPMC; and to fix and collect the fees and charges for the issuance of permits, licenses and the rendering of services not enumerated herein, the provisions of law to the contrary notwithstanding;

i. For the due and effective exercise of the powers conferred by law and to the extent requisite thereof, to exercise exclusive jurisdiction and sole police authority over all areas owned or administered by the PPMC. For this purpose, the PPMC shall have supervision and control over the bringing in or taking out of the PPFZ, including the movement therein, of all cargoes, wares, articles, machineries, equipment, supplies or merchandise of every type and description;

j. The PPMC, in the exercise if its sole police authority over the PPFZ, shall have the power to receive and investigate complaints relative to violations of penal laws committed inside the PPFZ, and when the evidence warrants, to file the corresponding criminal cases before the appropriate court or body;

k. Within the limitation provided by law, to raise and/or borrow the necessary funds from local and international financial institutions and to issue bonds, promissory notes and other securities for that purpose and to secure the same by guarantee, pledge, mortgage, deed of trust, or assignment of properties held by the PPMC for the purpose of financing its projects and programs within the framework and limitation of Republic Act No. 7227;

l. To operate, directly or indirectly, or license tourism-related activities subject to priorities and standards set by the PPMC including games, and amusements, except horse racing, dog racing and casino gambling which shall continue to be licensed by the Philippine Amusement and Gaming Corporation (PAGCOR) upon recommendation of the Conversion Authority;

m. To authorize the establishment of appropriate educational and medical institutions;

n. To raise revenues from among, but no limited to the following:

 

(i) periodic license fees and/or application; filing and registration and administrative/regulatory fees from PPFZ Registered Enterprises;

(ii) lease of land, facilities or other properties in the PPFZ

(iii) management and administrative service fees for processing, handling and escorting of importations, exportations and local sales or purchases;

(iv) capital or other contributions form the National Government;

(v) service and utility charges;

(vi) voluntary contributions;

(vii) resources from external, technical and financial assistance agencies;

(viii) grants from the National Government, local government units, local and foreign state-owned and privately owned entities and international organizations;

(ix) donations and contributions of all kinds;

(x) funds from loans and/or other securities obtained as authorized by the Board of Directors; and

(xi) proceeds from administrative fines and penalties.

 

o. To create and operate and/or contract to operate such agencies, functional units, offices and departments of the PPMC as it may deem necessary or useful for the furtherance of any of its purposes;

p. To adopt, alter and use a corporate seal which shall be judicially noticed; make contracts, lease, own or otherwise dispose of personal and real property; sue and be sued; to exercise the power of eminent domains and otherwise do and perform any and all things that may be necessary or proper to carry out its purposes;

q. To invest in personal property of every kind and description; and in meritorious cases and upon advances for the operation or expansion of PPFZ registered enterprise upon such terms and conditions as the Board may prescribe;

r. By itself or in cooperation with private persons or entities, to organize, finance, invest in or operate subsidiary corporations when such an arrangement is necessary to provide utilities and other amenities, which cannot be reasonably provided by existing entities;

s. To adopt and implement measure and standards for environmental pollution control of all areas with its territory and to enforce the same. For this purpose, the PPMC shall create an Ecology Center; and

t. To exercise such powers as may be essential, necessary or incidental to the powers granted to it hereunder as well as to carry out the policies and objectives of Republic Act No. 7227.