Supreme Court grants ICTSI petition to intervene in MICT project

MANILA, Philippines - The Supreme Court has granted a petition filed by International Container Terminal Services Inc. (ICTSI) to intervene in the case filed by the Philippine Ports Authority (PPA) against the City of Manila questioning the validity of the city council resolution seeking to stop the construction of the Berth 6 project of the Manila International Container Terminal (MICT).

ICTSI was granted the authority to develop, manage and operate the MICT, giving it a legal interest in the dispute, the company said.

The SC has issued an injunction to prevent the City of Manila from stopping the Berth 6 project, thereby temporarily allowing PPA to proceed with its development project with ICTSI at the MICT.

The order was issued through a petition of the PPA seeking temporary relief from the High Court after the city council stopped the project that required reclamation in the area of Isla Puting Bato in Tondo.

In its resolution, the council adopted the recommendation of its investigating committee and required “parties and private corporations involved in the reclamation to comply with the requirements under the Local Government Code and Manila Water Code.”

ICTSI had questioned the authority of the council to impose additional requirements for a port construction in the Port District of Manila.

It argued that the new Manila Water Code approved by the city council cannot amend the PPA charter and the laws and rules applicable to reclamation of land for port projects by requiring prior approval of the city mayor and the city council.

Senate President Juan Ponce Enrile himself agreed with PPA and ICTSI.

“The reclamation is supposed to pave the way for the development of an additional berth for vessels. Upon my inquiry, the PPA has confirmed that the said project is being undertaken with the prior approval of the authority. The berthing facility to be built on such reclaimed portion, after all, is subject to the control, regulation and supervision by the PPA,” he said.

“I find it very disturbing, even granting the best of intentions, that the city council would even be minded to require the port contractor to secure a mayor’s permit and a city ordinance to approve such an undertaking within the Port of Manila after the PPA has already approved the same pursuant to the expansion and improvement of port facilities at the MICT,” he added.

The multinational port operator earlier said the city council resolution was only a recommendation and was not the final word on the legality of the MICT Berth 6 project.

The project aims to expand the port by 14 hectares and 375 meters of berth. Three quay cranes for the port’s operation will also be added.

In a resolution dated Sept. 23, the City Council of Manila said it had adopted an ad-hoc committee’s report on reclamation activities in Tondo.

The report said the port operator started its project without the consent of Manila Mayor Alfredo Lim and approval of the city council.

The City Council of Manila also approved the Manila Water Code, which imposes local navigation and harbour fees on all water craft docked and moored within waters covered by the city.

The council recommended to Lim the suspension of the project until ICTSI and other concerned entities complied with local government requirements.

“The City Council of Manila has no authority to impose additional requirements for a port construction project in the Port District of Manila,” ICTSI said.

ICTSI said it had secured the approval of the PPA, which has exclusive jurisdiction over port projects by virtue of its charter.

The firm also said it had obtained the approval of the Philippine Reclamation Authority and an environmental compliance certificate from the Department of Environment and Natural Resources.

“MICT Berth 6 Project is a port development project being undertaken by ICTSI with the approval of the (PPA) and in compliance with ICTSI’s commitment under its concession contract with PPA,” the firm said.