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Albano v. Reyes: MICT Franchise Ruling

The Philippine Ports Authority conducted a public bidding for the development, management, and operation of the Manila International Container Terminal. They awarded the contract to International Container Terminal Services. Petitioner Rodolfo Albano argued that a legislative franchise was necessary to legally operate the terminal as a public utility under the Constitution. However, the Supreme Court ruled that no franchise was needed. While the terminal could be considered a public utility or service, the law has granted administrative agencies like the PPA the power to authorize the operation of certain public utilities. Presidential Decree 857 authorizes the PPA to perform the terminal's service itself or contract it out. Therefore, a congressional franchise for another entity to operate the terminal was unnecessary since the PPA

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91 views1 page

Albano v. Reyes: MICT Franchise Ruling

The Philippine Ports Authority conducted a public bidding for the development, management, and operation of the Manila International Container Terminal. They awarded the contract to International Container Terminal Services. Petitioner Rodolfo Albano argued that a legislative franchise was necessary to legally operate the terminal as a public utility under the Constitution. However, the Supreme Court ruled that no franchise was needed. While the terminal could be considered a public utility or service, the law has granted administrative agencies like the PPA the power to authorize the operation of certain public utilities. Presidential Decree 857 authorizes the PPA to perform the terminal's service itself or contract it out. Therefore, a congressional franchise for another entity to operate the terminal was unnecessary since the PPA

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CJ Fa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Albano v. Reyes (G.R. No.

83551)
Facts:

Philippine Ports Authority Board by virtue of its Resolution conducted a public bidding for the
development, management and operation of the Manila International Container Terminal (MICT). After
evaluation of the several bids, the Bidding Committee recommended the award of the contract to
respondent International Container Terminal Services (ICTSI). Petitioner Rodolfo A. Albano filed the
present petition as citizen and taxpayer and as a member of the House of Representatives, assailing the
award of the MICT contract to the ICTSI by the PPA. The petitioner claims that since the MICT is a
public utility, it needs a legislative franchise before it can legally operate as a public utility, pursuant to
Article 12, Section 11 of the 1987 Constitution.

Issue:

Whether or not a franchise is necessary for the operation of the MICT.

Ruling: NO.

Even if the MICP be considered a public utility, or a public service on the theory that it is a “wharf’ or a
“dock” as contemplated under the Public Service Act, its operation would not necessarily call for a
franchise from the Legislative Branch. Franchises issued by Congress are not required before each and
every public utility may operate. Thus, the law has granted certain administrative agencies the power to
grant licenses for or to authorize the operation of certain public utilities.

As stated earlier, E.O. No. 30 has tasked the PPA with the operation and management of the MICP, in
accordance with P.D. 857 and other applicable laws and regulations. However, P.D. 857 itself authorizes
the PPA to perform the service by itself, by contracting it out, or through other means. Reading E.O. No.
30 and P.D. No. 857 together, the inescapable conclusion is that the lawmaker has empowered the PPA to
undertake by itself the operation and management of the MICP or to authorize its operation and
management by another by contract or other means, at its option. The latter power having been delegated
to the PPA, a franchise from Congress to authorize an entity other than the PPA to operate and manage
the MICP becomes unnecessary.

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