Albano vs.

Reyes (175 SCRA 264)

Facts:

The Philippine Ports Authority (PPA) board directed the PPA management
to prepare for the public bidding of the development, management and
operation of the Manila International Container Terminal (MICT) at the Port
of Manila. A Bidding Committee was formed by the DOTC for the public
bidding. After evaluation of several bids, the Bidding Committee
recommended the award of the contract to respondent International
Container Terminal Services, Inc. (ICTSI). Accordingly, Rainerio Reyes,
then DOTC secretary, declared the ICTSI consortium as the winning
bidder.

On May 18, 1988, the President of the Philippines approved the same with
directives that PPA shall still have the responsibility for planning, detailed
engineering, construction, expansion, rehabilitation and capital dredging of
the port, as well as the determination of how the revenues of the port
system shall be allocated for future works; and the contractor shall not
collect taxes and duties except that in the case of wharfage or tonnage
dues.

Petitioner Albano, as taxpayer and Congressman, assailed the legality of

the award and claimed that since the MICT is a public utility, it needs a
legislative franchise before it can legally operate as a public utility.

ISSUE: Whether a franchise is needed for the operation of the MICT?

Held: No. While the PPA has been tasked under E.O. No. 30 with the
management and operation of the MICT and to undertake the provision of
cargo handling and port related services thereat, the law provides that such
shall be in accordance with P.D. 857 and other applicable laws and
regulations. P.D. 857 expressly empowers the PPA to provide services
within Port Districts whether on its own, by contract, or otherwise.

Even if the MICT is considered a public utility, its operation would not
necessarily need a franchise from the legislature because the law has
granted certain administrative agencies the power to grant licenses for or
to authorize the operation of public utilities. Reading E.O. 30 and P.D. 857
together, it is clear 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.

Doctrine: The law granted certain administrative agencies the power to

grant licenses for the operation of public utilities. Theory that MICT is a
wharf or a dock, as contemplated under the Public Service Act, would
not necessarily call for a franchise from the Legislative Branch.
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