REGULATIONS ON COMPULSORY TUG ASSISTANCE AT THE BASEPORT OF DAVAO AND OTHER POETS WITHIN THE JURISDICTION OF PMO DAVAO

1.1    Sections 6 (a) (ii), (iii), (v) and 20 of P.D. 857

1.2    Section 12 of PPA A.O. No. 03-85

2.         Scope — This Order shall cover all
foreign and domestic vessels with 500 gross registered tonnage and above
which dock/undock at the baseport of Davao and ail ports within the
jurisdiction of PMO Davao.

3.         Objective — To protect government port
facilities and to ensure the safe maneuvering of vessels at the baseport
of Davao and all ports within the jurisdiction of PMO Davao, through
the use of tugs.

4.         Guidelines

4.1    Responsibility for Ensuring Availability of Tug Assistance —
The Authority shall provide tug assistance service by authorizing
shipping companies or private entities to provide such service on a
non-exclusive basis.

4.2    Permit to Operate Tug Assistance — No operator shall
provide tug assistance within the harbor limits unless in possession of
an annual permit duly issued by the Authority, subject to such terms and
conditions as it may deem proper, in addition to the requirements of
other agencies. The tugboat operator shall provide the equipment needed
to render efficient service.

Tugboats towing/barges/lighters are exempted from the above
required annual permit when utilized solely for their own
barges/lighters. Otherwise, the above permit is required when servicing
other vessels for purposes of this regulation.

4.3    Table of Tug Requirements — Tug assistance requirements
shall be determined on the basis of the gross registered tons (GRT) of
the vessels and capacity (horsepower-HP) of the tugs in accordance with
the following specifications:

Vessels with both functional bow and stem thrusters of sufficient
capacity are exempted from the above tug requirements, unless the Master
of the vessel opts to avail of tug services. Vessels with functional
bow thrusters only are required to have fifty (50) percent of the above
tug horsepower requirements.

In no case shall any vessel of 500 GRT and above be allowed to
dock/undock at the baseport of Davao without the above-specified tug
assistance. For other ports within the jurisdiction of PMO Davao, the
same tugboat horsepower requirement shall be allowed when any of the
conditions provided for in Section 12 (c) of PPA Administrative Order
No. 03-85 necessitating compulsory tug assistance is present.

Non-propelled vessels such as barges/lighters are likewise
exempted from the above requirement. However, they are still required to
maintain their own tugboats while at berth in accordance with PPA
Memorandum Circular No. 22 86.

4.4    Rates for Tug Services — Consistent with existing
applicable laws, the Authority shall prescribe fees and rates for tug
assistance in consultation with port users concerned. In the absence of
applicable fees, the rates chargeable shall be those that are mutually
agreed upon by the shipping company and the tugboat operator. In case
both parties fail to agree, the Authority shall determine the rates.

4.5    Liability for Damages to Port Facilities — Any damage
caused to port facilities by vessels under tug assistance service shall
be the liability of the parties declared at fault, as determined under
existing applicable laws.

5.         Separability Clause — If for any reason,
any section or part of this Order is declared unconstitutional or
invalid by competent authority, the declared or invalid section or part
thereof shall not affect the other sections or parts to which such
declaration or nullity does not apply or relate.

6.         Repealing Clause — All PPA orders which are inconsistent herewith are hereby repealed or amended accordingly.

7.         Effectivity Clause — This Order shall take effect fifteen (15) days after its publication in any newspaper of general circulation.

Adopted: 03 May 2000

(SGD.) JUAN O. PEÑA
General Manager